SCHD vs VLU
Schwab US Dividend Equity ETF vs State Street SPDR S&P 1500 Value Tilt ETF
Which is better, SCHD or VLU?
Each has led over a different period.
SCHD has a lower expense ratio. SCHD led over 1Y, VLU over 3Y, 5Y and the full window. VLU is less concentrated, with 18.6% of the fund in its ten largest positions against 41.8%.
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 | VLU |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.12% |
| AUM | $108.9B | $751M |
| Dividend Yield | 3.00% | 1.57% |
| Holdings | 206 | 1,476 |
| YTD Return | +23.29%Best | +17.02% |
| 1Y Return | +29.70%Best | +23.83% |
| 3Y Return (annualized) | +16.26% | +21.08%Best |
| 5Y Return (annualized) | +9.65% | +12.91%Best |
| Volatility (annualized) | 14.1%Best | 15.8% |
| Max Drawdown | -33.4%Best | -37.9% |
| $10,000 over 5 years | $15,851 | $18,351Best |
| Top 10 Weight | 41.8% | 18.6%Best |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Oct 20, 2011 | Oct 24, 2012 |
Volatility and max drawdown are measured over the window both funds cover: Oct 25, 2012 to Oct 13, 2026 (14 years).
SCHD vs VLU 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 years both funds cover.
SCHD vs VLU Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street SPDR S&P 1500 Value Tilt ETF (VLU) is an ETF from State Street Investment Management. Over the past year SCHD returned +29.70% while VLU returned +23.83%. Year to date, SCHD is up 23.29% versus a gain of 17.02% for VLU.
Over three years, SCHD compounded at +16.26% per year against +21.08% for VLU; over five years the annualized figures are +9.65% and +12.91% respectively. Across the full 14-year window we track, VLU has the edge at +11.46% annualized vs +11.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VLU has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 14.1% 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 -37.9% for VLU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VLU charges 0.12%. On a $10,000 position that is $6 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 1.57% for VLU.
Holdings Overlap
96.8% of SCHD's money is in holdings VLU also owns. 14.0% of VLU's money is in holdings SCHD also owns.
Most of SCHD is already inside VLU. Owning both mostly buys the same companies twice.
86 positions in common, counted across the 99 positions we hold weights for in SCHD and 1,462 in VLU, against full books of 206 and 1,476.
What only one of them owns
Our book lists 1,174 positions for VLU that do not appear in our book for SCHD (84.7% of the fund), and 13 for SCHD that do not appear in VLU (3.2%).
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 VLU | Difference |
|---|---|---|---|
| VZVerizon Communications Inc Vz | 4.12% | 1.45% | 2.67% |
| CVXChevron Corp | 4.29% | 1.07% | 3.22% |
| MRKMerck & Company Inc | 4.77% | 0.57% | 4.20% |
| UNHUnitedhealth Group Incorporated | 3.82% | 1.24% | 2.58% |
| ABTAbbott Laboratories | 4.44% | 0.28% | 4.16% |
| COPConocophillips Common Stock USD 0.01 | 4.19% | 0.45% | 3.74% |
| KOCoca Cola Co. | 4.26% | 0.37% | 3.89% |
| AMGNAmgen Inc. | 4.24% | 0.22% | 4.02% |
| PGProcter & Gamble Company | 3.94% | 0.40% | 3.54% |
| HDHome Depot Inc/The | 3.75% | 0.49% | 3.26% |
96.8% of SCHD is already inside VLU.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or VLU?
SCHD has an expense ratio of 0.06% while VLU charges 0.12%. SCHD is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SCHD or VLU?
Over the past year SCHD returned +29.70% vs +23.83% for VLU, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), SCHD annualized +11.00% vs +11.46% for VLU. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VLU?
VLU has been the more volatile fund at 15.8% annualized versus 14.1% for SCHD. Worst drawdown: SCHD -33.4% vs VLU -37.9%.
Should I hold both SCHD and VLU?
SCHD and VLU have a monthly-return correlation of 0.88, 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 VLU?
96.8% of SCHD's money is in holdings VLU also owns. 14.0% of VLU's is in holdings SCHD also owns. They hold 86 positions in common, counted across the 99 positions we hold weights for in SCHD and 1,462 in VLU.
Which pays a higher dividend, SCHD or VLU?
SCHD yields 3.00% while VLU yields 1.57%, so SCHD currently pays the higher dividend yield.
Is VLU better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, VLU over 3Y, 5Y and the full window. VLU is less concentrated, with 18.6% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.