SCHD vs VTWO
Schwab US Dividend Equity ETF vs Vanguard Russell 2000 ETF
Which is better, SCHD or VTWO?
Large Cap Value against Small Cap Blend.
SCHD led over 1Y, 5Y and the full window, VTWO over 3Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | VTWO |
|---|---|---|
| Expense Ratio | 0.06%Tie | 0.06%Tie |
| AUM | $112.1B | $17.5B |
| Dividend Yield | 3.00% | 1.10% |
| Holdings | 103 | 2,015 |
| YTD Return | +25.84%Best | +15.55% |
| 1Y Return | +30.18%Best | +20.88% |
| 3Y Return (annualized) | +16.08% | +17.79%Best |
| 5Y Return (annualized) | +9.97%Best | +6.66% |
| Volatility (annualized) | 13.6%Best | 18.8% |
| Max Drawdown | -33.4%Best | -42.4% |
| $10,000 over 5 years | $16,083Best | $13,804 |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Small Cap Blend |
| Inception | Oct 20, 2011 | Sep 20, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 15, 2026 (14.9 years).
SCHD vs VTWO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
SCHD vs VTWO Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard Russell 2000 ETF (VTWO) is an ETF from Vanguard (US). Over the past year SCHD returned +30.18% while VTWO returned +20.88%. Year to date, SCHD is up 25.84% versus a gain of 15.55% for VTWO.
Over three years, SCHD compounded at +16.08% per year against +17.79% for VTWO; over five years the annualized figures are +9.97% and +6.66% respectively. Across the full 15-year window we track, SCHD has the edge at +11.40% annualized vs +10.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -42.4% for VTWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VTWO charges 0.06%. On a $10,000 position that is $6 vs $6 annually. On income, SCHD currently yields 3.00% against 1.10% for VTWO.
Holdings Overlap
At least 1.3% of SCHD's money is in holdings VTWO also owns.
Stated as a floor: for VTWO, our book for it covers 89.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SCHD and VTWO share little of their money.
29 positions in common, counted across the 100 positions we hold weights for in SCHD and 1,633 in VTWO, against full books of 103 and 2,015.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VTWO | Difference |
|---|---|---|---|
| MURMurphy Oil Corp | 0.12% | 0.17% | 0.05% |
| MCMoelis & Co_None_0 | 0.12% | 0.16% | 0.04% |
| KFYKorn Ferry | 0.11% | 0.14% | 0.03% |
| CVBFCvb Financial Corp. | 0.09% | 0.12% | 0.03% |
| APAMArtisan Partners Asset Management, Inc. | 0.07% | 0.08% | 0.01% |
| BANRBanner Corp_None_0 | 0.06% | 0.08% | 0.02% |
| LANCLancaster Colony Corp | 0.06% | 0.07% | 0.01% |
| AGMFederal Agricultural Mortgage Corp | 0.05% | 0.07% | 0.02% |
| IPARInter Parfums Inc | 0.05% | 0.07% | 0.02% |
| OFG:PROfg Bancorp Common Stock | 0.05% | 0.07% | 0.02% |
You are not choosing between two funds in isolation.
Whichever of SCHD and VTWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or VTWO?
SCHD has an expense ratio of 0.06% while VTWO charges 0.06%. At the precision these are quoted to, they cost the same.
Which performed better, SCHD or VTWO?
Over the past year SCHD returned +30.18% vs +20.88% for VTWO, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.40% vs +10.59% for VTWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VTWO?
VTWO has been the more volatile fund at 18.8% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VTWO -42.4%.
Should I hold both SCHD and VTWO?
SCHD and VTWO have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and VTWO?
At least 1.3% of SCHD's money is in holdings VTWO also owns. Our book for VTWO is partial, so the real figure is this or higher. They hold 29 positions in common, counted across the 100 positions we hold weights for in SCHD and 1,633 in VTWO.
Which pays a higher dividend, SCHD or VTWO?
SCHD yields 3.00% while VTWO yields 1.10%, so SCHD currently pays the higher dividend yield.
Is VTWO better than SCHD?
SCHD led over 1Y, 5Y and the full window, VTWO over 3Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.