SCHF vs. VNQ
SCHF (Schwab International Equity ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - SCHF is a Foreign Large Cap Equities fund tracking the FTSE Developed ex U.S. 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, SCHF returned 10.82%/yr vs 5.65%/yr for VNQ. A 0.57 correlation means they provide meaningful diversification when combined. SCHF charges 0.06%/yr vs 0.13%/yr for VNQ.
Performance
SCHF vs. VNQ - Performance Comparison
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Returns By Period
In the year-to-date period, SCHF achieves a 15.39% return, which is significantly higher than VNQ's 12.51% return. Over the past 10 years, SCHF has outperformed VNQ with an annualized return of 10.82%, while VNQ has yielded a comparatively lower 5.65% annualized return.
SCHF
- 1D
- 0.29%
- 1M
- 1.69%
- YTD
- 15.39%
- 6M
- 17.24%
- 1Y
- 31.75%
- 3Y*
- 19.18%
- 5Y*
- 9.76%
- 10Y*
- 10.82%
VNQ
- 1D
- 0.92%
- 1M
- 3.35%
- YTD
- 12.51%
- 6M
- 12.32%
- 1Y
- 14.02%
- 3Y*
- 10.14%
- 5Y*
- 2.55%
- 10Y*
- 5.65%
SCHF vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCHF Schwab International Equity ETF | 15.39% | 34.55% | 3.28% | 18.35% | -14.80% | 11.40% | 9.48% | 22.26% | -14.29% | 26.03% |
VNQ Vanguard Real Estate ETF | 12.51% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between SCHF and VNQ is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.45 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Nov 3, 2009 | 0.57 |
The correlation between SCHF and VNQ shifts across timeframes, from 0.45 (1 year) to 0.59 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
SCHF vs. VNQ — Risk / Return Rank
SCHF
VNQ
SCHF vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab International Equity ETF (SCHF) 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.
| SCHF | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.86 | ||
| Sortino ratioReturn per unit of downside risk | +1.12 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.17 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 2.64 | 1.56 | +1.09 |
| Martin ratioReturn relative to average drawdown | 10.14 | 4.90 | +5.25 |
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Drawdowns
SCHF vs. VNQ - Drawdown Comparison
The maximum SCHF drawdown since its inception was -34.87%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for SCHF and VNQ.
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Drawdown Indicators
| SCHF | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.87% | -73.07% | +38.20% |
Max Drawdown (1Y)Largest decline over 1 year | -11.48% | -8.34% | -3.14% |
Max Drawdown (3Y)Largest decline over 3 years | -13.41% | -17.46% | +4.05% |
Max Drawdown (5Y)Largest decline over 5 years | -29.14% | -34.48% | +5.34% |
Max Drawdown (10Y)Largest decline over 10 years | -34.87% | -42.40% | +7.53% |
Current DrawdownCurrent decline from peak | -1.00% | 0.00% | -1.00% |
Average DrawdownAverage peak-to-trough decline | -7.37% | -13.61% | +6.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.99% | 2.65% | +0.34% |
Volatility
SCHF vs. VNQ - Volatility Comparison
Schwab International Equity ETF (SCHF) has a higher volatility of 6.91% compared to Vanguard Real Estate ETF (VNQ) at 4.72%. This indicates that SCHF's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHF | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.91% | 4.72% | +2.19% |
Volatility (6M)Calculated over the trailing 6-month period | 14.42% | 9.77% | +4.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.67% | 13.54% | +3.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.56% | 18.84% | -2.28% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.24% | 20.72% | -3.48% |
SCHF vs. VNQ - Expense Ratio Comparison
SCHF has a 0.06% 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
SCHF vs. VNQ - Dividend Comparison
SCHF's dividend yield for the trailing twelve months is around 2.96%, less than VNQ's 3.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHF Schwab International Equity ETF | 2.96% | 3.42% | 3.26% | 2.97% | 2.80% | 3.19% | 2.08% | 2.95% | 3.06% | 2.35% | 2.58% | 2.26% |
VNQ Vanguard Real Estate ETF | 3.54% | 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
SCHF and VNQ have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHF has higher volatility (6.91%) compared to VNQ (4.72%). In terms of maximum drawdown, SCHF dropped -34.87% vs VNQ's -73.07%.
On 10-year performance, SCHF leads with 10.82% vs 5.65% for VNQ. On fees, SCHF is cheaper at 0.06% per year. On volatility, VNQ has been the lower-risk option at 4.72%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHF has performed better with a 10.82% return vs 5.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHF is cheaper with a 0.06% expense ratio, compared with 0.13% for VNQ.
VNQ has the higher dividend yield at 3.54%, compared with 2.96% for SCHF.
SCHF is categorized as Foreign Large Cap Equities, while VNQ is REIT. SCHF tracks FTSE Developed ex U.S. 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: 0.06% for SCHF and 0.13% for VNQ.
SCHF currently has the higher Sharpe Ratio (1.82 vs 0.96), 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.
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