SCHD vs VGT

Quick Verdict

SCHD has a lower expense ratio. VGT delivered stronger 1-year returns. VGT offers more diversification with 322 holdings.

Lower Fees: SCHDHigher Returns: VGTMore Diversified: VGT

Side-by-Side Comparison

MetricSCHDVGTWinner
Expense Ratio0.06%0.09%
AUM$103.7B$146.6B
Dividend Yield3.31%0.38%
Holdings104324
YTD Return+22.69%+20.01%
1Y Return+30.94%+31.68%
3Y Return (annualized)+14.20%+26.50%
5Y Return (annualized)+9.59%+17.90%
Volatility (annualized)13.7%19.5%
Max Drawdown-33.4%-54.8%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryEquityEquity
InceptionOct 20, 2011Jan 26, 2004

SCHD vs VGT Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Information Technology ETF (VGT) is a ETF from Vanguard (US). Over the past year SCHD returned +30.94% while VGT returned +31.68%. Year to date, SCHD is up 22.69% versus a gain of 20.01% for VGT.

Over three years, SCHD compounded at +14.20% per year against +26.50% for VGT; over five years the annualized figures are +9.59% and +17.90% respectively. Across the full 15-year window we track, VGT has the edge at +14.02% annualized vs +11.31%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VGT has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 13.7% 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 -54.8% for VGT. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while VGT charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.38% for VGT.

Holdings Overlap

2.3%overlap

SCHD and VGT share 4 holdings out of 418 unique holdings combined, representing a 2.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in VGTDifference
TXN3.70%1.08%2.62%
QCOM2.72%0.80%1.92%
2345:TW2.24%0.32%1.92%
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Frequently Asked Questions

Which is cheaper, SCHD or VGT?

SCHD has an expense ratio of 0.06% while VGT charges 0.09%. SCHD is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, SCHD or VGT?

Over the past year SCHD returned +30.94% vs +31.68% for VGT, so VGT leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.31% vs +14.02% for VGT. Past performance does not guarantee future results.

Which is riskier, SCHD or VGT?

VGT has been the more volatile fund at 19.5% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs VGT -54.8%.

Should I hold both SCHD and VGT?

SCHD and VGT have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and VGT?

SCHD and VGT share 4 common holdings with a 2.3% weight overlap. Combined, they hold 418 unique securities.

Which pays a higher dividend, SCHD or VGT?

SCHD yields 3.31% while VGT yields 0.38%, so SCHD currently pays the higher dividend yield.

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