SCHD vs VGI
SCHD vs VGI
Schwab US Dividend Equity ETF vs Virtus Global Multi-Sector Income Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.
Side-by-Side Comparison
| Metric | SCHD | VGI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.74% | |
| AUM | $103.7B | $88M | |
| Dividend Yield | 3.31% | 11.98% | |
| Holdings | 104 | 646 | |
| YTD Return | +24.08% | -0.31% | |
| 1Y Return | +31.88% | +3.99% | |
| 3Y Return (annualized) | +14.92% | +11.01% | |
| 5Y Return (annualized) | +9.85% | +1.79% | |
| Volatility (annualized) | 13.6% | 14.1% | |
| Max Drawdown | -33.4% | -63.3% | |
| Fund Family | Charles Schwab Asset Management | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Feb 23, 2012 |
SCHD vs VGI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year SCHD returned +31.88% while VGI returned +3.99%. Year to date, SCHD is up 24.08% versus a loss of 0.31% for VGI.
Over three years, SCHD compounded at +14.92% per year against +11.01% for VGI; over five years the annualized figures are +9.85% and +1.79% respectively. Across the full 14-year window we track, SCHD has the edge at +11.39% annualized vs -2.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGI has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -63.3% for VGI. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VGI charges 1.74%. On a $10,000 position that is $6 vs $174 annually, a gap of $168 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 11.98% for VGI.
Holdings Overlap
SCHD and VGI share 0 holdings out of 534 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VGI?
SCHD has an expense ratio of 0.06% while VGI charges 1.74%. SCHD is the cheaper option. On a $10,000 investment, that is $168 per year of difference.
Which performed better, SCHD or VGI?
Over the past year SCHD returned +31.88% vs +3.99% for VGI, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), SCHD annualized +11.39% vs -2.50% for VGI. Past performance does not guarantee future results.
Which is riskier, SCHD or VGI?
VGI has been the more volatile fund at 14.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VGI -63.3%.
Should I hold both SCHD and VGI?
SCHD and VGI have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VGI?
SCHD and VGI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 534 unique securities.
Which pays a higher dividend, SCHD or VGI?
SCHD yields 3.31% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.
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