SCHA vs. VTWO

Last updated Jun 24, 2026

SCHA (Schwab U.S. Small-Cap ETF) and VTWO (Vanguard Russell 2000 ETF) are both Small Cap Blend Equities funds - SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Index while VTWO tracks the Russell 2000 Index. Both are passively managed. Over the past 10 years, SCHA returned 11.72%/yr vs 11.73%/yr for VTWO. With a 0.99 correlation, they move nearly in lockstep. SCHA charges 0.04%/yr vs 0.06%/yr for VTWO.

Performance

SCHA vs. VTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Small-Cap ETF (SCHA) and Vanguard Russell 2000 ETF (VTWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHA achieves a 22.53% return, which is significantly higher than VTWO's 20.53% return. Both investments have delivered pretty close results over the past 10 years, with SCHA having a 11.72% annualized return and VTWO not far ahead at 11.73%.

SCHA

• 1D: -1.72%
• 1M: 4.56%
• YTD: 22.53%
• 6M: 20.00%
• 1Y: 41.81%
• 3Y*: 19.85%
• 5Y*: 7.30%
• 10Y*: 11.72%

VTWO

• 1D: -0.94%
• 1M: 3.85%
• YTD: 20.53%
• 6M: 17.73%
• 1Y: 41.24%
• 3Y*: 19.49%
• 5Y*: 6.45%
• 10Y*: 11.73%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SCHA vs. VTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHA Schwab U.S. Small-Cap ETF	22.53%	11.60%	11.16%	18.46%	-19.81%	16.45%	19.34%	26.50%	-11.79%	14.94%
VTWO Vanguard Russell 2000 ETF	20.53%	12.90%	11.55%	17.08%	-20.49%	14.79%	20.22%	25.81%	-11.15%	14.69%

Correlation

The correlation between SCHA and VTWO is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Sep 22, 2010	0.99

The correlation between SCHA and VTWO has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

SCHA vs. VTWO - Sectors Allocation Comparison

Sectors	SCHA	VTWO
Technology	24.3%	19.1%
Financial Services	15.4%	15.5%
Industrials	15.4%	17.9%
Healthcare	13.8%	16.3%
Consumer Cyclical	9.2%	7.9%
Real Estate	5.8%	5.9%
Energy	4.8%	5.3%
Basic Materials	4.1%	4.7%
Consumer Defensive	2.5%	2.2%
Communication Services	2.3%	2.5%
Utilities	2.1%	2.8%

Return for Risk

SCHA vs. VTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SCHA

SCHA Risk / Return Rank: 75
SCHA Sharpe Ratio Rank: 73
SCHA Sortino Ratio Rank: 72
SCHA Omega Ratio Rank: 64
SCHA Calmar Ratio Rank: 84
SCHA Martin Ratio Rank: 83

VTWO

VTWO Risk / Return Rank: 68
VTWO Sharpe Ratio Rank: 67
VTWO Sortino Ratio Rank: 65
VTWO Omega Ratio Rank: 58
VTWO Calmar Ratio Rank: 76
VTWO Martin Ratio Rank: 73

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SCHA vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Small-Cap ETF (SCHA) and Vanguard Russell 2000 ETF (VTWO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SCHA	VTWO	Difference
Sharpe ratio: Return per unit of total volatility	2.24	2.11	+0.13
Sortino ratio: Return per unit of downside risk	3.11	2.89	+0.22
Omega ratio: Gain probability vs. loss probability	1.37	1.34	+0.03
Calmar ratio: Return relative to maximum drawdown	4.42	3.77	+0.65
Martin ratio: Return relative to average drawdown	16.18	13.36	+2.82

SCHA vs. VTWO - Sharpe Ratio Comparison

The current SCHA Sharpe Ratio is 2.24, which is comparable to the VTWO Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of SCHA and VTWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SCHA vs. VTWO - Drawdown Comparison

The maximum SCHA drawdown since its inception was -42.41%, roughly equal to the maximum VTWO drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for SCHA and VTWO.

Drawdown Indicators

	SCHA	VTWO	Difference
Max Drawdown Largest peak-to-trough decline	-42.41%	-41.19%	-1.22%
Max Drawdown (1Y) Largest decline over 1 year	-9.50%	-10.99%	+1.49%
Max Drawdown (3Y) Largest decline over 3 years	-27.29%	-27.57%	+0.28%
Max Drawdown (5Y) Largest decline over 5 years	-30.79%	-31.88%	+1.09%
Max Drawdown (10Y) Largest decline over 10 years	-42.41%	-41.19%	-1.22%
Current Drawdown Current decline from peak	-1.72%	-0.94%	-0.78%
Average Drawdown Average peak-to-trough decline	-7.56%	-8.36%	+0.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.59%	3.10%	-0.51%

Volatility

SCHA vs. VTWO - Volatility Comparison

Schwab U.S. Small-Cap ETF (SCHA) and Vanguard Russell 2000 ETF (VTWO) have volatilities of 6.71% and 6.57%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHA	VTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.71%	6.57%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	13.92%	14.28%	-0.36%
Volatility (1Y) Calculated over the trailing 1-year period	18.77%	19.68%	-0.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.05%	22.56%	-0.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.75%	23.11%	-0.36%

SCHA vs. VTWO - Expense Ratio Comparison

SCHA has a 0.04% expense ratio, which is lower than VTWO's 0.06% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHA vs. VTWO - Dividend Comparison

SCHA's dividend yield for the trailing twelve months is around 0.98%, less than VTWO's 1.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHA Schwab U.S. Small-Cap ETF	0.98%	1.26%	1.51%	1.42%	1.37%	1.19%	1.05%	1.39%	1.58%	1.24%	1.50%	1.48%
VTWO Vanguard Russell 2000 ETF	1.10%	1.25%	1.21%	1.45%	1.48%	1.13%	0.92%	1.36%	1.41%	1.18%	1.27%	1.23%

Frequently Asked Questions

Can I hold both SCHA and VTWO in my portfolio?

With a correlation of 0.98, SCHA and VTWO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SCHA or VTWO?

SCHA has higher volatility (6.71%) compared to VTWO (6.57%). In terms of maximum drawdown, SCHA dropped -42.41% vs VTWO's -41.19%.

Which ETF is better, SCHA or VTWO?

On 10-year performance, VTWO leads with 11.73% vs 11.72% for SCHA. On fees, SCHA is cheaper at 0.04% per year. On volatility, VTWO has been the lower-risk option at 6.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHA or VTWO?

Over the 10-year period, VTWO has performed better with a 11.73% return vs 11.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHA or VTWO?

SCHA is cheaper with a 0.04% expense ratio, compared with 0.06% for VTWO.

Which ETF pays a higher dividend yield, SCHA or VTWO?

VTWO has the higher dividend yield at 1.10%, compared with 0.98% for SCHA.

What is the main difference between SCHA and VTWO?

SCHA tracks Dow Jones U.S. Small-Cap Total Stock Market Index, while VTWO tracks Russell 2000 Index. They also come from different issuers: Charles Schwab and Vanguard. Their fees differ too: 0.04% for SCHA and 0.06% for VTWO.

Which has better risk-adjusted returns?

SCHA currently has the higher Sharpe Ratio (2.24 vs 2.11), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.