SCHD vs VFH
Schwab US Dividend Equity ETF vs Vanguard Financials ETF
Which is better, SCHD or VFH?
Each has led over a different period.
SCHD has a lower expense ratio. SCHD led over 1Y and 5Y, VFH over 3Y and the full window. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 46.5%.
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 | VFH |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.09% |
| AUM | $111.6B | $12.7B |
| Dividend Yield | 3.24% | 1.81% |
| Holdings | 206 | 429 |
| YTD Return | +24.55%Best | +0.05% |
| 1Y Return | +29.85%Best | +3.70% |
| 3Y Return (annualized) | +16.64% | +19.93%Best |
| 5Y Return (annualized) | +9.54%Best | +8.69% |
| Volatility (annualized) | 13.7%Best | 17.9% |
| Max Drawdown | -33.4%Best | -44.8% |
| $10,000 over 5 years | $15,771Best | $15,169 |
| Top 10 Weight | 41.6%Best | 46.5% |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Oct 20, 2011 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Oct 14, 2026 (15 years).
SCHD vs VFH 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 15 years both funds cover.
SCHD vs VFH Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard Financials ETF (VFH) is an ETF from Vanguard (US). Over the past year SCHD returned +29.85% while VFH returned +3.70%. Year to date, SCHD is up 24.55% versus a gain of 0.05% for VFH.
Over three years, SCHD compounded at +16.64% per year against +19.93% for VFH; over five years the annualized figures are +9.54% and +8.69% respectively. Across the full 15-year window we track, VFH has the edge at +12.08% annualized vs +11.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFH has been the more volatile fund, with annualized monthly volatility of 17.9% compared with 13.7% 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 -44.8% for VFH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VFH charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.24% against 1.81% for VFH.
Holdings Overlap
9.1% of SCHD's money is in holdings VFH also owns. 4.4% of VFH's money is in holdings SCHD also owns.
SCHD and VFH share little of their money.
38 positions in common, counted across the 98 positions we hold weights for in SCHD and 424 in VFH, against full books of 206 and 429.
What only one of them owns
Our book lists 344 positions for VFH that do not appear in our book for SCHD (94.5% of the fund), and 60 for SCHD that do not appear in VFH (90.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VFH | Difference |
|---|---|---|---|
| BXBlackstone Group Inc. Class A | 2.16% | 1.17% | 0.99% |
| FITBFifth Third Bancorp | 1.19% | 0.54% | 0.65% |
| ARESAres Management Corp A | 0.68% | 0.33% | 0.35% |
| CINFCincinnati Financial Corp. | 0.64% | 0.29% | 0.35% |
| RFRegions Financia | 0.59% | 0.28% | 0.31% |
| TROWT Rowe Price Grp | 0.57% | 0.26% | 0.31% |
| PFGPrincipalfinancialgroupinc. | 0.56% | 0.26% | 0.30% |
| EWBCEast West Bancorp, Inc. | 0.44% | 0.19% | 0.25% |
| FNFFidelity Nationa | 0.26% | 0.13% | 0.13% |
| AFGAmerican Financial Group Inc/Oh | 0.25% | 0.10% | 0.15% |
You are not choosing between two funds in isolation.
Whichever of SCHD and VFH 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 VFH?
SCHD has an expense ratio of 0.06% while VFH charges 0.09%. SCHD is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, SCHD or VFH?
Over the past year SCHD returned +29.85% vs +3.70% for VFH, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.26% vs +12.08% for VFH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VFH?
VFH has been the more volatile fund at 17.9% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs VFH -44.8%.
Should I hold both SCHD and VFH?
SCHD and VFH have a monthly-return correlation of 0.81, 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 VFH?
9.1% of SCHD's money is in holdings VFH also owns. 4.4% of VFH's is in holdings SCHD also owns. They hold 38 positions in common, counted across the 98 positions we hold weights for in SCHD and 424 in VFH.
Which pays a higher dividend, SCHD or VFH?
SCHD yields 3.24% while VFH yields 1.81%, so SCHD currently pays the higher dividend yield.
Is VFH better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y and 5Y, VFH over 3Y and the full window. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.