SCHD vs VTI

Quick Verdict

VTI has a lower expense ratio. SCHD delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: SCHDMore Diversified: VTI

Side-by-Side Comparison

MetricSCHDVTIWinner
Expense Ratio0.06%0.03%
AUM$103.7B$663.5B
Dividend Yield3.31%1.07%
Holdings1043,543
YTD Return+23.31%+13.57%
1Y Return+30.42%+24.23%
3Y Return (annualized)+14.66%+20.73%
5Y Return (annualized)+9.59%+12.24%
Volatility (annualized)13.6%15.3%
Max Drawdown-33.4%-56.6%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryEquityEquity
InceptionOct 20, 2011May 24, 2001

SCHD vs VTI Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year SCHD returned +30.42% while VTI returned +24.23%. Year to date, SCHD is up 23.31% versus a gain of 13.57% for VTI.

Over three years, SCHD compounded at +14.66% per year against +20.73% for VTI; over five years the annualized figures are +9.59% and +12.24% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +8.12%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SCHD charges 0.06% per year while VTI 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 1.07% for VTI.

Holdings Overlap

6.8%overlap

SCHD and VTI share 84 holdings out of 2799 unique holdings combined, representing a 6.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in VTIDifference
UNH4.54%0.52%4.02%
MRK4.32%0.44%3.88%
ABT4.49%0.22%4.27%
HDProProPro
PGProProPro
AMGNProProPro
KOProProPro
CVXProProPro
TXNProProPro
PEPProProPro
See all 10 holdings SCHD shares with VTI
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Frequently Asked Questions

Which is cheaper, SCHD or VTI?

SCHD has an expense ratio of 0.06% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, SCHD or VTI?

Over the past year SCHD returned +30.42% vs +24.23% for VTI, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.34% vs +8.12% for VTI. Past performance does not guarantee future results.

Which is riskier, SCHD or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VTI -56.6%.

Should I hold both SCHD and VTI?

SCHD and VTI have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and VTI?

SCHD and VTI share 84 common holdings with a 6.8% weight overlap. Combined, they hold 2799 unique securities.

Which pays a higher dividend, SCHD or VTI?

SCHD yields 3.31% while VTI yields 1.07%, so SCHD currently pays the higher dividend yield.

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