SCHD vs VGMS
SCHD vs VGMS
Schwab US Dividend Equity ETF vs Vanguard Multi-Sector Income Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VGMS offers more diversification with 534 holdings.
Side-by-Side Comparison
| Metric | SCHD | VGMS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.30% | |
| AUM | $103.7B | $235M | |
| Dividend Yield | 3.31% | 5.14% | |
| Holdings | 104 | 927 | |
| YTD Return | +22.69% | -1.54% | |
| 1Y Return | +30.94% | +2.46% | |
| 3Y Return (annualized) | +14.20% | - | |
| 5Y Return (annualized) | +9.59% | - | |
| Volatility (annualized) | 13.7% | 2.9% | |
| Max Drawdown | -33.4% | -2.9% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jun 9, 2025 |
SCHD vs VGMS Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Multi-Sector Income Bond ETF (VGMS) is a ETF from Vanguard (US). Over the past year SCHD returned +30.94% while VGMS returned +2.46%. Year to date, SCHD is up 22.69% versus a loss of 1.54% for VGMS.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 2.9% for VGMS. 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 -2.9% for VGMS. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VGMS charges 0.30%. On a $10,000 position that is $6 vs $30 annually, a gap of $24 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 5.14% for VGMS.
Holdings Overlap
SCHD and VGMS share 0 holdings out of 634 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 VGMS?
SCHD has an expense ratio of 0.06% while VGMS charges 0.30%. SCHD is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, SCHD or VGMS?
Over the past year SCHD returned +30.94% vs +2.46% for VGMS, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.31% vs +3.65% for VGMS. Past performance does not guarantee future results.
Which is riskier, SCHD or VGMS?
SCHD has been the more volatile fund at 13.7% annualized versus 2.9% for VGMS. Worst drawdown: SCHD -33.4% vs VGMS -2.9%.
Should I hold both SCHD and VGMS?
SCHD and VGMS have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VGMS?
SCHD and VGMS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 634 unique securities.
Which pays a higher dividend, SCHD or VGMS?
SCHD yields 3.31% while VGMS yields 5.14%, so VGMS currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.