SCHD vs VEA
SCHD vs VEA
Schwab US Dividend Equity ETF vs Vanguard FTSE Developed Markets ETF
Quick Verdict
VEA has a lower expense ratio. SCHD delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | SCHD | VEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $230.9B | |
| Dividend Yield | 3.31% | 2.57% | |
| Holdings | 104 | 3,918 | |
| YTD Return | +24.26% | +16.14% | |
| 1Y Return | +31.38% | +29.87% | |
| 3Y Return (annualized) | +15.08% | +20.12% | |
| 5Y Return (annualized) | +9.72% | +10.27% | |
| Volatility (annualized) | 13.6% | 17.8% | |
| Max Drawdown | -33.4% | -62.9% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jul 20, 2007 |
SCHD vs VEA Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VEA returned +29.87%. Year to date, SCHD is up 24.26% versus a gain of 16.14% for VEA.
Over three years, SCHD compounded at +15.08% per year against +20.12% for VEA; over five years the annualized figures are +9.72% and +10.27% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +3.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -33.4% for SCHD and -62.9% for VEA. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VEA charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.57% for VEA.
Holdings Overlap
SCHD and VEA share 1 holdings out of 3107 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VEA | Difference |
|---|---|---|---|
| SLB:CW | 1.80% | 1.10% | 0.70% |
Frequently Asked Questions
Which is cheaper, SCHD or VEA?
SCHD has an expense ratio of 0.06% while VEA charges 0.03%. VEA is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VEA?
Over the past year SCHD returned +31.38% vs +29.87% for VEA, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +3.14% for VEA. Past performance does not guarantee future results.
Which is riskier, SCHD or VEA?
VEA has been the more volatile fund at 17.8% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VEA -62.9%.
Should I hold both SCHD and VEA?
SCHD and VEA have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VEA?
SCHD and VEA share 1 common holdings with a 1.1% weight overlap. Combined, they hold 3107 unique securities.
Which pays a higher dividend, SCHD or VEA?
SCHD yields 3.31% while VEA yields 2.57%, so SCHD currently pays the higher dividend yield.
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