SCHD vs VGHAX
Schwab US Dividend Equity ETF vs Vanguard Health Care Fund Admiral Shares
Which is better, SCHD or VGHAX?
Large Cap Value against Large Cap Growth.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. VGHAX is less concentrated, with 40.6% of the fund in its ten largest positions against 41.6%.
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 | VGHAX |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.27% |
| AUM | $111.6B | $34.1B |
| Dividend Yield | 3.24% | 2.70% |
| Holdings | 206 | 109 |
| YTD Price Return | +21.57%Best | -0.39% |
| 1Y Price Return | +25.46%Best | +7.17% |
| 3Y Price Return (annualized) | +12.46%Best | -0.49% |
| 5Y Price Return (annualized) | +5.70%Best | -2.58% |
| Volatility (annualized) | 15.4% | 15.3%Best |
| Max Drawdown | -18.9%Best | -32.7% |
| $10,000 over 5 years | $13,194Best | $8,775 |
| Top 10 Weight | 41.6% | 40.6%Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Oct 20, 2011 | Nov 12, 2001 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VGHAX. Both funds are measured the same way, so the comparison holds. SCHD yields 3.24% and VGHAX 2.70% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
SCHD vs VGHAX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
SCHD vs VGHAX Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year SCHD returned +25.46% while VGHAX returned +7.17%. Year to date, SCHD is up 21.57% versus a loss of 0.39% for VGHAX.
Over three years, SCHD compounded at +12.46% per year against -0.49% for VGHAX; over five years the annualized figures are +5.70% and -2.58% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 15.3% for VGHAX. 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 -18.9% for SCHD and -32.7% for VGHAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.57. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while VGHAX charges 0.27%. On a $10,000 position that is $6 vs $27 annually, a gap of $21 per year that compounds over a long holding period. On income, SCHD currently yields 3.24% against 2.70% for VGHAX.
Structure and taxes
VGHAX is a mutual fund and SCHD is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
18.8% of SCHD's money is in holdings VGHAX also owns. 12.0% of VGHAX's money is in holdings SCHD also owns.
SCHD and VGHAX share little of their money.
The two holdings books were reported 64 days apart, SCHD as of Oct 3, 2026 and VGHAX as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
5 positions in common, counted across the 98 positions we hold weights for in SCHD and 83 in VGHAX, against full books of 206 and 109.
What only one of them owns
Our book lists 53 positions for VGHAX that do not appear in our book for SCHD (61.0% of the fund), and 92 for SCHD that do not appear in VGHAX (81.0%).
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.
You are not choosing between two funds in isolation.
Whichever of SCHD and VGHAX 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 VGHAX?
SCHD has an expense ratio of 0.06% while VGHAX charges 0.27%. SCHD is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, SCHD or VGHAX?
Over the past year SCHD returned +25.46% vs +7.17% for VGHAX, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VGHAX?
SCHD has been the more volatile fund at 15.4% annualized versus 15.3% for VGHAX. Worst drawdown: SCHD -18.9% vs VGHAX -32.7%.
Should I hold both SCHD and VGHAX?
SCHD and VGHAX have a monthly-return correlation of 0.57, 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 VGHAX?
18.8% of SCHD's money is in holdings VGHAX also owns. 12.0% of VGHAX's is in holdings SCHD also owns. They hold 5 positions in common, counted across the 98 positions we hold weights for in SCHD and 83 in VGHAX.
Which pays a higher dividend, SCHD or VGHAX?
SCHD yields 3.24% while VGHAX yields 2.70%, so SCHD currently pays the higher dividend yield.
Is it better to hold VGHAX or SCHD in a taxable account?
SCHD is an ETF and VGHAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VGHAX better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. VGHAX is less concentrated, with 40.6% of the fund in its ten largest positions against 41.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.