SCHD vs VFVA

Quick Verdict

SCHD has a lower expense ratio. VFVA delivered stronger 1-year returns. VFVA offers more diversification with 636 holdings.

Lower Fees: SCHDHigher Returns: VFVAMore Diversified: VFVA

Side-by-Side Comparison

MetricSCHDVFVAWinner
Expense Ratio0.06%0.13%
AUM$103.7B$845M
Dividend Yield3.31%2.56%
Holdings104639
YTD Return+24.26%+20.16%
1Y Return+31.38%+36.25%
3Y Return (annualized)+15.08%+16.69%
5Y Return (annualized)+9.72%+12.45%
Volatility (annualized)13.6%22.9%
Max Drawdown-33.4%-48.6%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryEquityEquity
InceptionOct 20, 2011Feb 13, 2018

SCHD vs VFVA Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard US Value Factor ETF (VFVA) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VFVA returned +36.25%. Year to date, SCHD is up 24.26% versus a gain of 20.16% for VFVA.

Over three years, SCHD compounded at +15.08% per year against +16.69% for VFVA; over five years the annualized figures are +9.72% and +12.45% respectively. Across the full 9-year window we track, SCHD has the edge at +11.39% annualized vs +11.31%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VFVA has been the more volatile fund, with annualized monthly volatility of 22.9% 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 -48.6% for VFVA. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

SCHD charges 0.06% per year while VFVA charges 0.13%. On a $10,000 position that is $6 vs $13 annually, a gap of $7 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.56% for VFVA.

Holdings Overlap

11.6%overlap

SCHD and VFVA share 50 holdings out of 686 unique holdings combined, representing a 11.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in VFVADifference
UNH4.54%0.63%3.91%
MRK4.32%0.72%3.60%
VZ3.68%0.97%2.71%
ABTProProPro
AMGNProProPro
COPProProPro
BMYProProPro
CVXProProPro
PEPProProPro
MOProProPro
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Frequently Asked Questions

Which is cheaper, SCHD or VFVA?

SCHD has an expense ratio of 0.06% while VFVA charges 0.13%. SCHD is the cheaper option. On a $10,000 investment, that is $7 per year of difference.

Which performed better, SCHD or VFVA?

Over the past year SCHD returned +31.38% vs +36.25% for VFVA, so VFVA leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.39% vs +11.31% for VFVA. Past performance does not guarantee future results.

Which is riskier, SCHD or VFVA?

VFVA has been the more volatile fund at 22.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VFVA -48.6%.

Should I hold both SCHD and VFVA?

SCHD and VFVA have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between SCHD and VFVA?

SCHD and VFVA share 50 common holdings with a 11.6% weight overlap. Combined, they hold 686 unique securities.

Which pays a higher dividend, SCHD or VFVA?

SCHD yields 3.31% while VFVA yields 2.56%, so SCHD currently pays the higher dividend yield.

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