SCHD vs VNQ
SCHD vs VNQ
Schwab US Dividend Equity ETF vs Vanguard Real Estate ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VNQ offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | SCHD | VNQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.13% | |
| AUM | $103.7B | $38.2B | |
| Dividend Yield | 3.31% | 3.52% | |
| Holdings | 104 | 144 | |
| YTD Return | +23.31% | +13.94% | |
| 1Y Return | +30.42% | +13.86% | |
| 3Y Return (annualized) | +14.66% | +9.85% | |
| 5Y Return (annualized) | +9.59% | +2.28% | |
| Volatility (annualized) | 13.6% | 21.4% | |
| Max Drawdown | -33.4% | -75.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Sep 23, 2004 |
SCHD vs VNQ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year SCHD returned +30.42% while VNQ returned +13.86%. Year to date, SCHD is up 23.31% versus a gain of 13.94% for VNQ.
Over three years, SCHD compounded at +14.66% per year against +9.85% for VNQ; over five years the annualized figures are +9.59% and +2.28% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +4.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -75.8% for VNQ. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VNQ charges 0.13%. On a $10,000 position that is $6 vs $13 annually, a gap of $7 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.52% for VNQ.
Holdings Overlap
SCHD and VNQ share 0 holdings out of 244 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 VNQ?
SCHD has an expense ratio of 0.06% while VNQ charges 0.13%. SCHD is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, SCHD or VNQ?
Over the past year SCHD returned +30.42% vs +13.86% for VNQ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.34% vs +4.16% for VNQ. Past performance does not guarantee future results.
Which is riskier, SCHD or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VNQ -75.8%.
Should I hold both SCHD and VNQ?
SCHD and VNQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VNQ?
SCHD and VNQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 244 unique securities.
Which pays a higher dividend, SCHD or VNQ?
SCHD yields 3.31% while VNQ yields 3.52%, so VNQ currently pays the higher dividend yield.
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