SCHD vs VUG

Quick Verdict

VUG has a lower expense ratio. SCHD delivered stronger 1-year returns. VUG offers more diversification with 146 holdings.

Lower Fees: VUGHigher Returns: SCHDMore Diversified: VUG

Side-by-Side Comparison

MetricSCHDVUGWinner
Expense Ratio0.06%0.03%
AUM$103.7B$223.2B
Dividend Yield3.31%0.47%
Holdings104155
YTD Return+24.08%+10.19%
1Y Return+31.88%+18.35%
3Y Return (annualized)+14.92%+23.99%
5Y Return (annualized)+9.85%+13.07%
Volatility (annualized)13.6%16.5%
Max Drawdown-33.4%-51.4%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryEquityEquity
InceptionOct 20, 2011Jan 26, 2004

SCHD vs VUG Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year SCHD returned +31.88% while VUG returned +18.35%. Year to date, SCHD is up 24.08% versus a gain of 10.19% for VUG.

Over three years, SCHD compounded at +14.92% per year against +23.99% for VUG; over five years the annualized figures are +9.85% and +13.07% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +11.29%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -51.4% for VUG. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while VUG 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 0.47% for VUG.

Holdings Overlap

0.8%overlap

SCHD and VUG share 4 holdings out of 242 unique holdings combined, representing a 0.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in VUGDifference
TXN3.70%0.39%3.31%
BX2.38%0.14%2.24%
FAST1.34%0.17%1.17%
ARESProProPro
See all 4 holdings SCHD shares with VUG
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, SCHD or VUG?

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

Which performed better, SCHD or VUG?

Over the past year SCHD returned +31.88% vs +18.35% for VUG, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +11.29% for VUG. Past performance does not guarantee future results.

Which is riskier, SCHD or VUG?

VUG has been the more volatile fund at 16.5% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VUG -51.4%.

Should I hold both SCHD and VUG?

SCHD and VUG have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and VUG?

SCHD and VUG share 4 common holdings with a 0.8% weight overlap. Combined, they hold 242 unique securities.

Which pays a higher dividend, SCHD or VUG?

SCHD yields 3.31% while VUG yields 0.47%, so SCHD currently pays the higher dividend yield.

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