SCHB vs. VNQ

Last updated Jun 12, 2026

SCHB (Schwab U.S. Broad Market ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - SCHB is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Broad Stock Market Index, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, SCHB returned 14.92%/yr vs 5.53%/yr for VNQ. A 0.64 correlation means they provide meaningful diversification when combined. SCHB charges 0.03%/yr vs 0.13%/yr for VNQ.

Performance

SCHB vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Broad Market ETF (SCHB) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHB achieves a 9.14% return, which is significantly lower than VNQ's 11.49% return. Over the past 10 years, SCHB has outperformed VNQ with an annualized return of 14.92%, while VNQ has yielded a comparatively lower 5.53% annualized return.

SCHB

• 1D: 1.86%
• 1M: 0.49%
• YTD: 9.14%
• 6M: 7.99%
• 1Y: 24.46%
• 3Y*: 20.72%
• 5Y*: 12.15%
• 10Y*: 14.92%

VNQ

• 1D: -0.07%
• 1M: 0.95%
• YTD: 11.49%
• 6M: 11.16%
• 1Y: 12.43%
• 3Y*: 10.04%
• 5Y*: 2.36%
• 10Y*: 5.53%

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

SCHB vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHB Schwab U.S. Broad Market ETF	9.14%	16.94%	23.93%	26.16%	-19.46%	25.84%	20.76%	30.79%	-5.43%	21.20%
VNQ Vanguard Real Estate ETF	11.49%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between SCHB and VNQ is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Nov 3, 2009	0.64

Over the past year, the correlation between SCHB and VNQ has dropped to 0.36 - well below their long-term average of 0.64, suggesting their price drivers have been diverging.

SCHB vs. VNQ - Sectors Allocation Comparison

Sectors	SCHB	VNQ
Technology	34.4%	0.3%
Financial Services	12.2%	0.1%
Consumer Cyclical	10.1%	-
Communication Services	10.1%	0.6%
Industrials	9.4%	0.0%
Healthcare	8.9%	-
Consumer Defensive	4.6%	-
Energy	3.7%	0.1%
Real Estate	2.4%	97.3%
Utilities	2.3%	-
Basic Materials	2.0%	1.1%

Return for Risk

SCHB vs. VNQ — Risk / Return Rank

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

SCHB

SCHB Risk / Return Rank: 72
SCHB Sharpe Ratio Rank: 74
SCHB Sortino Ratio Rank: 71
SCHB Omega Ratio Rank: 72
SCHB Calmar Ratio Rank: 67
SCHB Martin Ratio Rank: 78

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 31
VNQ Sortino Ratio Rank: 29
VNQ Omega Ratio Rank: 29
VNQ Calmar Ratio Rank: 36
VNQ Martin Ratio Rank: 36

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.

SCHB vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Broad Market ETF (SCHB) and Vanguard Real Estate ETF (VNQ). 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.

	SCHB	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.95	0.92	+1.02
Sortino ratio: Return per unit of downside risk	2.64	1.35	+1.29
Omega ratio: Gain probability vs. loss probability	1.35	1.17	+0.18
Calmar ratio: Return relative to maximum drawdown	2.76	1.50	+1.26
Martin ratio: Return relative to average drawdown	12.33	4.71	+7.63

SCHB vs. VNQ - Sharpe Ratio Comparison

The current SCHB Sharpe Ratio is 1.95, which is higher than the VNQ Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of SCHB and VNQ, 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

SCHB vs. VNQ - Drawdown Comparison

The maximum SCHB drawdown since its inception was -35.27%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for SCHB and VNQ.

Drawdown Indicators

	SCHB	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-35.27%	-73.07%	+37.80%
Max Drawdown (1Y) Largest decline over 1 year	-8.91%	-8.34%	-0.57%
Max Drawdown (3Y) Largest decline over 3 years	-19.34%	-17.46%	-1.88%
Max Drawdown (5Y) Largest decline over 5 years	-25.41%	-34.48%	+9.07%
Max Drawdown (10Y) Largest decline over 10 years	-35.27%	-42.40%	+7.13%
Current Drawdown Current decline from peak	-2.63%	-0.49%	-2.14%
Average Drawdown Average peak-to-trough decline	-4.11%	-13.61%	+9.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	2.65%	-0.66%

Volatility

SCHB vs. VNQ - Volatility Comparison

Schwab U.S. Broad Market ETF (SCHB) and Vanguard Real Estate ETF (VNQ) have volatilities of 4.60% and 4.74%, 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

	SCHB	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.60%	4.74%	-0.14%
Volatility (6M) Calculated over the trailing 6-month period	9.87%	9.74%	+0.13%
Volatility (1Y) Calculated over the trailing 1-year period	12.63%	13.52%	-0.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.32%	18.85%	-1.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.35%	20.72%	-2.37%

SCHB vs. VNQ - Expense Ratio Comparison

SCHB has a 0.03% expense ratio, which is lower than VNQ's 0.13% 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

SCHB vs. VNQ - Dividend Comparison

SCHB's dividend yield for the trailing twelve months is around 1.04%, less than VNQ's 3.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHB Schwab U.S. Broad Market ETF	1.04%	1.11%	1.24%	1.40%	1.61%	1.21%	1.63%	1.80%	2.00%	1.65%	1.86%	2.00%
VNQ Vanguard Real Estate ETF	3.57%	3.92%	3.85%	3.95%	3.91%	2.56%	3.93%	3.39%	4.74%	4.23%	4.82%	3.92%

Frequently Asked Questions

Can I hold both SCHB and VNQ in my portfolio?

SCHB and VNQ have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHB or VNQ?

VNQ has higher volatility (4.74%) compared to SCHB (4.60%). In terms of maximum drawdown, SCHB dropped -35.27% vs VNQ's -73.07%.

Which ETF is better, SCHB or VNQ?

On 10-year performance, SCHB leads with 14.92% vs 5.53% for VNQ. On fees, SCHB is cheaper at 0.03% per year. On volatility, SCHB has been the lower-risk option at 4.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHB or VNQ?

Over the 10-year period, SCHB has performed better with a 14.92% return vs 5.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHB or VNQ?

SCHB is cheaper with a 0.03% expense ratio, compared with 0.13% for VNQ.

Which ETF pays a higher dividend yield, SCHB or VNQ?

VNQ has the higher dividend yield at 3.57%, compared with 1.04% for SCHB.

What is the main difference between SCHB and VNQ?

SCHB is categorized as Large Cap Blend Equities, while VNQ is REIT. SCHB tracks Dow Jones U.S. Broad Stock Market Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Charles Schwab and Vanguard. Their fees differ too: 0.03% for SCHB and 0.13% for VNQ.

Which has better risk-adjusted returns?

SCHB currently has the higher Sharpe Ratio (1.95 vs 0.92), 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.