SCHD vs VPU
SCHD vs VPU
Schwab US Dividend Equity ETF vs Vanguard Utilities ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | VPU | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.09% | |
| AUM | $103.7B | $8.7B | |
| Dividend Yield | 3.31% | 2.86% | |
| Holdings | 104 | 70 | |
| YTD Return | +24.26% | +2.22% | |
| 1Y Return | +31.38% | +3.75% | |
| 3Y Return (annualized) | +15.08% | +14.05% | |
| 5Y Return (annualized) | +9.72% | +8.39% | |
| Volatility (annualized) | 13.6% | 13.9% | |
| Max Drawdown | -33.4% | -48.4% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
SCHD vs VPU Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Utilities ETF (VPU) is a ETF from Vanguard (US). Over the past year SCHD returned +31.38% while VPU returned +3.75%. Year to date, SCHD is up 24.26% versus a gain of 2.22% for VPU.
Over three years, SCHD compounded at +15.08% per year against +14.05% for VPU; over five years the annualized figures are +9.72% and +8.39% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +6.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VPU has been the more volatile fund, with annualized monthly volatility of 13.9% 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 -48.4% for VPU. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VPU 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 2.86% for VPU.
Holdings Overlap
SCHD and VPU share 1 holdings out of 167 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VPU | Difference |
|---|---|---|---|
| CWEN | 0.11% | 0.26% | 0.15% |
Frequently Asked Questions
Which is cheaper, SCHD or VPU?
SCHD has an expense ratio of 0.06% while VPU 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 VPU?
Over the past year SCHD returned +31.38% vs +3.75% for VPU, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +6.89% for VPU. Past performance does not guarantee future results.
Which is riskier, SCHD or VPU?
VPU has been the more volatile fund at 13.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VPU -48.4%.
Should I hold both SCHD and VPU?
SCHD and VPU have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VPU?
SCHD and VPU share 1 common holdings with a 0.1% weight overlap. Combined, they hold 167 unique securities.
Which pays a higher dividend, SCHD or VPU?
SCHD yields 3.31% while VPU yields 2.86%, so SCHD currently pays the higher dividend yield.
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