SCHZ vs VXUS
SCHZ vs VXUS
Schwab US Aggregate Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
SCHZ has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | SCHZ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $10.5B | $156.5B | |
| Dividend Yield | 4.10% | 2.60% | |
| Holdings | 11,809 | 8,747 | |
| YTD Return | -0.32% | +13.57% | |
| 1Y Return | +2.00% | +28.78% | |
| 3Y Return (annualized) | +3.97% | +18.63% | |
| 5Y Return (annualized) | -0.52% | +9.05% | |
| Volatility (annualized) | 4.5% | 15.1% | |
| Max Drawdown | -19.7% | -39.9% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 14, 2011 | Jan 26, 2011 |
SCHZ vs VXUS Performance
Schwab US Aggregate Bond ETF (SCHZ) is a ETF from Charles Schwab Asset Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year SCHZ returned +2.00% while VXUS returned +28.78%. Year to date, SCHZ is down 0.32% versus a gain of 13.57% for VXUS.
Over three years, SCHZ compounded at +3.97% per year against +18.63% for VXUS; over five years the annualized figures are -0.52% and +9.05% respectively. Across the full 15-year window we track, VXUS has the edge at +4.80% annualized vs +0.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 4.5% for SCHZ. 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 -19.7% for SCHZ and -39.9% for VXUS. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHZ charges 0.03% per year while VXUS charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHZ currently yields 4.10% against 2.60% for VXUS.
Holdings Overlap
SCHZ and VXUS share 0 holdings out of 8556 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, SCHZ or VXUS?
SCHZ has an expense ratio of 0.03% while VXUS charges 0.05%. SCHZ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SCHZ or VXUS?
Over the past year SCHZ returned +2.00% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), SCHZ annualized +0.56% vs +4.80% for VXUS. Past performance does not guarantee future results.
Which is riskier, SCHZ or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 4.5% for SCHZ. Worst drawdown: SCHZ -19.7% vs VXUS -39.9%.
Should I hold both SCHZ and VXUS?
SCHZ and VXUS have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHZ and VXUS?
SCHZ and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8556 unique securities.
Which pays a higher dividend, SCHZ or VXUS?
SCHZ yields 4.10% while VXUS yields 2.60%, so SCHZ currently pays the higher dividend yield.
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