SCHD vs VTC
SCHD vs VTC
Schwab US Dividend Equity ETF vs Vanguard Total Corporate Bond ETF
Quick Verdict
VTC has a lower expense ratio. SCHD delivered stronger 1-year returns. VTC offers more diversification with 4198 holdings.
Side-by-Side Comparison
| Metric | SCHD | VTC | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $1.8B | |
| Dividend Yield | 3.31% | 4.17% | |
| Holdings | 104 | 4,840 | |
| YTD Return | +23.53% | -0.59% | |
| 1Y Return | +30.95% | +1.57% | |
| 3Y Return (annualized) | +14.72% | +4.87% | |
| 5Y Return (annualized) | +9.56% | -0.22% | |
| Volatility (annualized) | 13.6% | 7.3% | |
| Max Drawdown | -33.4% | -22.4% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Nov 7, 2017 |
SCHD vs VTC Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Total Corporate Bond ETF (VTC) is a ETF from Vanguard (US). Over the past year SCHD returned +30.95% while VTC returned +1.57%. Year to date, SCHD is up 23.53% versus a loss of 0.59% for VTC.
Over three years, SCHD compounded at +14.72% per year against +4.87% for VTC; over five years the annualized figures are +9.56% and -0.22% respectively. Across the full 9-year window we track, SCHD has the edge at +11.35% annualized vs +0.96%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 7.3% for VTC. 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 -22.4% for VTC. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VTC charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.17% for VTC.
Holdings Overlap
SCHD and VTC share 0 holdings out of 4298 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 VTC?
SCHD has an expense ratio of 0.06% while VTC charges 0.03%. VTC is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or VTC?
Over the past year SCHD returned +30.95% vs +1.57% for VTC, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.35% vs +0.96% for VTC. Past performance does not guarantee future results.
Which is riskier, SCHD or VTC?
SCHD has been the more volatile fund at 13.6% annualized versus 7.3% for VTC. Worst drawdown: SCHD -33.4% vs VTC -22.4%.
Should I hold both SCHD and VTC?
SCHD and VTC have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VTC?
SCHD and VTC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4298 unique securities.
Which pays a higher dividend, SCHD or VTC?
SCHD yields 3.31% while VTC yields 4.17%, so VTC currently pays the higher dividend yield.
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