SCHG vs. VSS

Last updated Jul 21, 2026

SCHG (Schwab U.S. Large-Cap Growth ETF) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both exchange-traded funds - SCHG is a Large Cap Growth Equities fund tracking the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, while VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, SCHG returned 18.26%/yr vs 7.62%/yr for VSS. A 0.73 correlation means they provide meaningful diversification when combined. SCHG charges 0.04%/yr vs 0.07%/yr for VSS.

Performance

SCHG vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Large-Cap Growth ETF (SCHG) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with SCHG having a 4.93% return and VSS slightly lower at 4.76%. Over the past 10 years, SCHG has outperformed VSS with an annualized return of 18.26%, while VSS has yielded a comparatively lower 7.62% annualized return.

SCHG

• 1D: -0.09%
• 1M: 0.84%
• 6M: 5.77%
• YTD: 4.93%
• 1Y: 15.31%
• 3Y*: 21.96%
• 5Y*: 13.32%
• 10Y*: 18.26%
• ALL TIME*: 16.37%

VSS

• 1D: -0.93%
• 1M: -5.21%
• 6M: 0.59%
• YTD: 4.76%
• 1Y: 14.08%
• 3Y*: 12.89%
• 5Y*: 5.01%
• 10Y*: 7.62%
• ALL TIME*: 9.58%

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

SCHG vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHG Schwab U.S. Large-Cap Growth ETF	4.93%	17.50%	34.95%	50.10%	-31.80%	28.11%	39.14%	36.02%	-1.36%	28.05%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	4.76%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Correlation

The correlation between SCHG and VSS is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Dec 11, 2009	0.74

The correlation between SCHG and VSS shifts across timeframes, from 0.61 (3 years) to 0.73 (all time), reflecting how their relationship changes across market environments.

SCHG vs. VSS - Sectors Allocation Comparison

Sectors	SCHG	VSS
Technology	44.0%	14.9%
Communication Services	14.1%	2.1%
Consumer Cyclical	11.2%	9.1%
Healthcare	9.9%	5.9%
Financial Services	7.7%	10.5%
Industrials	7.6%	19.5%
Consumer Defensive	1.9%	3.6%
Basic Materials	1.6%	11.6%
Energy	0.9%	4.0%
Real Estate	0.6%	7.0%
Utilities	0.5%	2.3%

Return for Risk

SCHG vs. VSS — Risk / Return Rank

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

SCHG

SCHG Risk / Return Rank: 30
SCHG Sharpe Ratio Rank: 34
SCHG Sortino Ratio Rank: 32
SCHG Omega Ratio Rank: 32
SCHG Calmar Ratio Rank: 26
SCHG Martin Ratio Rank: 29

VSS

VSS Risk / Return Rank: 32
VSS Sharpe Ratio Rank: 32
VSS Sortino Ratio Rank: 30
VSS Omega Ratio Rank: 31
VSS Calmar Ratio Rank: 32
VSS 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.

SCHG vs. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Large-Cap Growth ETF (SCHG) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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.

	SCHG	VSS	Difference
Sharpe ratio: Return per unit of total volatility	0.94	0.88	+0.06
Sortino ratio: Return per unit of downside risk	1.35	1.28	+0.07
Omega ratio: Gain probability vs. loss probability	1.17	1.17	0.00
Calmar ratio: Return relative to maximum drawdown	0.94	1.22	-0.28
Martin ratio: Return relative to average drawdown	3.00	4.12	-1.12

SCHG vs. VSS - Sharpe Ratio Comparison

The current SCHG Sharpe Ratio is 0.94, which is comparable to the VSS Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of SCHG and VSS, 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

SCHG vs. VSS - Drawdown Comparison

The maximum SCHG drawdown since its inception was -34.59%, smaller than the maximum VSS drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for SCHG and VSS.

Drawdown Indicators

	SCHG	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-34.59%	-43.51%	+8.92%
Max Drawdown (1Y) Largest decline over 1 year	-16.41%	-11.62%	-4.79%
Max Drawdown (3Y) Largest decline over 3 years	-23.39%	-15.73%	-7.66%
Max Drawdown (5Y) Largest decline over 5 years	-34.59%	-33.93%	-0.66%
Max Drawdown (10Y) Largest decline over 10 years	-34.59%	-43.51%	+8.92%
Current Drawdown Current decline from peak	-3.16%	-7.70%	+4.54%
Average Drawdown Average peak-to-trough decline	-5.19%	-9.60%	+4.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.12%	3.43%	+1.69%

Volatility

SCHG vs. VSS - Volatility Comparison

The current volatility for Schwab U.S. Large-Cap Growth ETF (SCHG) is 4.47%, while Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a volatility of 4.76%. This indicates that SCHG experiences smaller price fluctuations and is considered to be less risky than VSS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHG	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.47%	4.76%	-0.29%
Volatility (6M) Calculated over the trailing 6-month period	12.82%	14.24%	-1.42%
Volatility (1Y) Calculated over the trailing 1-year period	16.43%	16.08%	+0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.40%	16.65%	+5.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.57%	17.12%	+4.45%

SCHG vs. VSS - Expense Ratio Comparison

SCHG has a 0.04% expense ratio, which is lower than VSS's 0.07% 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

SCHG vs. VSS - Dividend Comparison

SCHG's dividend yield for the trailing twelve months is around 0.39%, less than VSS's 3.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHG Schwab U.S. Large-Cap Growth ETF	0.39%	0.36%	0.39%	0.46%	0.55%	0.42%	0.52%	0.82%	1.27%	1.01%	1.04%	1.22%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.33%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both SCHG and VSS in my portfolio?

SCHG and VSS have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHG or VSS?

VSS has higher volatility (4.76%) compared to SCHG (4.47%). In terms of maximum drawdown, SCHG dropped -34.59% vs VSS's -43.51%.

Which ETF is better, SCHG or VSS?

On 10-year performance, SCHG leads with 18.26% vs 7.62% for VSS. On fees, SCHG is cheaper at 0.04% per year. On volatility, SCHG has been the lower-risk option at 4.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHG or VSS?

Over the 10-year period, SCHG has performed better with a 18.26% return vs 7.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHG or VSS?

SCHG is cheaper with a 0.04% expense ratio, compared with 0.07% for VSS.

Which ETF pays a higher dividend yield, SCHG or VSS?

VSS has the higher dividend yield at 3.33%, compared with 0.39% for SCHG.

What is the main difference between SCHG and VSS?

SCHG is categorized as Large Cap Growth Equities, while VSS is Foreign Small & Mid Cap Equities. SCHG tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index, while VSS tracks FTSE Global Small Cap ex US Index. They also come from different issuers: Charles Schwab and Vanguard. Their fees differ too: 0.04% for SCHG and 0.07% for VSS.

Which has better risk-adjusted returns?

SCHG currently has the higher Sharpe Ratio (0.94 vs 0.88), 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.