SCHD vs VGIT
SCHD vs VGIT
Schwab US Dividend Equity ETF vs Vanguard Intermediate Term Treasury ETF
Quick Verdict
VGIT has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | VGIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $42.1B | |
| Dividend Yield | 3.31% | 3.84% | |
| Holdings | 104 | 106 | |
| YTD Return | +23.53% | -0.80% | |
| 1Y Return | +30.95% | +1.08% | |
| 3Y Return (annualized) | +14.72% | +3.63% | |
| 5Y Return (annualized) | +9.56% | -0.18% | |
| Volatility (annualized) | 13.6% | 4.3% | |
| Max Drawdown | -33.4% | -17.2% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Nov 19, 2009 |
SCHD vs VGIT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year SCHD returned +30.95% while VGIT returned +1.08%. Year to date, SCHD is up 23.53% versus a loss of 0.80% for VGIT.
Over three years, SCHD compounded at +14.72% per year against +3.63% for VGIT; over five years the annualized figures are +9.56% and -0.18% respectively. Across the full 15-year window we track, SCHD has the edge at +11.35% annualized vs +0.74%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.3% for VGIT. 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 -17.2% for VGIT. 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VGIT 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 3.84% for VGIT.
Holdings Overlap
SCHD and VGIT share 0 holdings out of 184 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 VGIT?
SCHD has an expense ratio of 0.06% while VGIT charges 0.03%. VGIT is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VGIT?
Over the past year SCHD returned +30.95% vs +1.08% for VGIT, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.35% vs +0.74% for VGIT. Past performance does not guarantee future results.
Which is riskier, SCHD or VGIT?
SCHD has been the more volatile fund at 13.6% annualized versus 4.3% for VGIT. Worst drawdown: SCHD -33.4% vs VGIT -17.2%.
Should I hold both SCHD and VGIT?
SCHD and VGIT have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VGIT?
SCHD and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 184 unique securities.
Which pays a higher dividend, SCHD or VGIT?
SCHD yields 3.31% while VGIT yields 3.84%, so VGIT currently pays the higher dividend yield.
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