SCHD vs VGVT
SCHD vs VGVT
Schwab US Dividend Equity ETF vs Vanguard Government Securities Active ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VGVT offers more diversification with 143 holdings.
Side-by-Side Comparison
| Metric | SCHD | VGVT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.10% | |
| AUM | $103.7B | $39M | |
| Dividend Yield | 3.31% | 3.96% | |
| Holdings | 104 | 194 | |
| YTD Return | +22.69% | -0.58% | |
| 1Y Return | +30.94% | +2.53% | |
| 3Y Return (annualized) | +14.20% | - | |
| 5Y Return (annualized) | +9.59% | - | |
| Volatility (annualized) | 13.7% | 3.4% | |
| Max Drawdown | -33.4% | -2.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jun 18, 2025 |
SCHD vs VGVT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Government Securities Active ETF (VGVT) is a ETF from Vanguard (US). Over the past year SCHD returned +30.94% while VGVT returned +2.53%. Year to date, SCHD is up 22.69% versus a loss of 0.58% for VGVT.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 3.4% for VGVT. 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 -2.8% for VGVT. 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VGVT charges 0.10%. On a $10,000 position that is $6 vs $10 annually, a gap of $4 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.96% for VGVT.
Holdings Overlap
SCHD and VGVT share 0 holdings out of 243 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 VGVT?
SCHD has an expense ratio of 0.06% while VGVT charges 0.10%. SCHD is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SCHD or VGVT?
Over the past year SCHD returned +30.94% vs +2.53% for VGVT, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.31% vs +2.46% for VGVT. Past performance does not guarantee future results.
Which is riskier, SCHD or VGVT?
SCHD has been the more volatile fund at 13.7% annualized versus 3.4% for VGVT. Worst drawdown: SCHD -33.4% vs VGVT -2.8%.
Should I hold both SCHD and VGVT?
SCHD and VGVT have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VGVT?
SCHD and VGVT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 243 unique securities.
Which pays a higher dividend, SCHD or VGVT?
SCHD yields 3.31% while VGVT yields 3.96%, so VGVT currently pays the higher dividend yield.
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