SCHM vs. VSEQX

Last updated Jun 26, 2026

SCHM (Schwab US Mid-Cap ETF) and VSEQX (Vanguard Strategic Equity Fund) are both Mid Cap Blend Equities funds. Over the past 10 years, SCHM returned 12.31%/yr vs 13.70%/yr for VSEQX. With a 0.98 correlation, they move nearly in lockstep. SCHM charges 0.04%/yr vs 0.17%/yr for VSEQX.

Performance

SCHM vs. VSEQX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab US Mid-Cap ETF (SCHM) and Vanguard Strategic Equity Fund (VSEQX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHM achieves a 22.04% return, which is significantly higher than VSEQX's 17.81% return. Over the past 10 years, SCHM has underperformed VSEQX with an annualized return of 12.31%, while VSEQX has yielded a comparatively higher 13.70% annualized return.

SCHM

• 1D: 1.96%
• 1M: 4.00%
• YTD: 22.04%
• 6M: 19.62%
• 1Y: 34.41%
• 3Y*: 18.54%
• 5Y*: 8.42%
• 10Y*: 12.31%

VSEQX

• 1D: 0.55%
• 1M: 2.32%
• YTD: 17.81%
• 6M: 15.56%
• 1Y: 35.52%
• 3Y*: 21.55%
• 5Y*: 12.08%
• 10Y*: 13.70%

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

SCHM vs. VSEQX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHM Schwab US Mid-Cap ETF	22.04%	10.17%	11.98%	16.69%	-17.07%	19.36%	15.26%	27.48%	-8.77%	19.60%
VSEQX Vanguard Strategic Equity Fund	17.81%	15.32%	16.67%	19.31%	-11.90%	30.83%	10.26%	26.76%	-11.86%	12.36%

Correlation

The correlation between SCHM and VSEQX is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Jan 13, 2011	0.98

The correlation between SCHM and VSEQX has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

SCHM vs. VSEQX - Sectors Allocation Comparison

Sectors	SCHM	VSEQX
Technology	22.1%	17.4%
Industrials	21.7%	16.5%
Financial Services	10.9%	14.8%
Healthcare	10.9%	10.9%
Consumer Cyclical	10.8%	10.4%
Real Estate	6.4%	6.8%
Basic Materials	4.7%	4.8%
Consumer Defensive	3.4%	3.4%
Energy	3.4%	6.0%
Utilities	2.9%	4.9%
Communication Services	2.6%	3.3%

Return for Risk

SCHM vs. VSEQX — Risk / Return Rank

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

SCHM

SCHM Risk / Return Rank: 78
SCHM Sharpe Ratio Rank: 77
SCHM Sortino Ratio Rank: 77
SCHM Omega Ratio Rank: 72
SCHM Calmar Ratio Rank: 81
SCHM Martin Ratio Rank: 84

VSEQX

VSEQX Risk / Return Rank: 83
VSEQX Sharpe Ratio Rank: 80
VSEQX Sortino Ratio Rank: 78
VSEQX Omega Ratio Rank: 72
VSEQX Calmar Ratio Rank: 93
VSEQX Martin Ratio Rank: 94

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.

SCHM vs. VSEQX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab US Mid-Cap ETF (SCHM) and Vanguard Strategic Equity Fund (VSEQX). 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.

	SCHM	VSEQX	Difference
Sharpe ratio: Return per unit of total volatility	2.12	2.26	-0.15
Sortino ratio: Return per unit of downside risk	2.95	3.14	-0.19
Omega ratio: Gain probability vs. loss probability	1.37	1.39	-0.02
Calmar ratio: Return relative to maximum drawdown	3.71	4.55	-0.84
Martin ratio: Return relative to average drawdown	14.81	17.45	-2.64

SCHM vs. VSEQX - Sharpe Ratio Comparison

The current SCHM Sharpe Ratio is 2.12, which is comparable to the VSEQX Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of SCHM and VSEQX, 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

SCHM vs. VSEQX - Drawdown Comparison

The maximum SCHM drawdown since its inception was -42.43%, smaller than the maximum VSEQX drawdown of -63.55%. Use the drawdown chart below to compare losses from any high point for SCHM and VSEQX.

Drawdown Indicators

	SCHM	VSEQX	Difference
Max Drawdown Largest peak-to-trough decline	-42.43%	-63.55%	+21.12%
Max Drawdown (1Y) Largest decline over 1 year	-9.32%	-7.60%	-1.72%
Max Drawdown (3Y) Largest decline over 3 years	-23.27%	-24.73%	+1.46%
Max Drawdown (5Y) Largest decline over 5 years	-26.46%	-24.73%	-1.73%
Max Drawdown (10Y) Largest decline over 10 years	-42.43%	-44.08%	+1.65%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-5.64%	-9.05%	+3.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.33%	1.98%	+0.35%

Volatility

SCHM vs. VSEQX - Volatility Comparison

Schwab US Mid-Cap ETF (SCHM) has a higher volatility of 5.91% compared to Vanguard Strategic Equity Fund (VSEQX) at 4.40%. This indicates that SCHM's price experiences larger fluctuations and is considered to be riskier than VSEQX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHM	VSEQX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.91%	4.40%	+1.51%
Volatility (6M) Calculated over the trailing 6-month period	12.69%	11.09%	+1.60%
Volatility (1Y) Calculated over the trailing 1-year period	16.37%	15.30%	+1.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.68%	19.97%	-0.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.49%	21.40%	-0.91%

SCHM vs. VSEQX - Expense Ratio Comparison

SCHM has a 0.04% expense ratio, which is lower than VSEQX's 0.17% 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

SCHM vs. VSEQX - Dividend Comparison

SCHM's dividend yield for the trailing twelve months is around 1.21%, less than VSEQX's 9.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHM Schwab US Mid-Cap ETF	1.21%	1.46%	1.43%	1.50%	1.67%	1.13%	1.31%	1.48%	1.56%	1.27%	1.51%	1.54%
VSEQX Vanguard Strategic Equity Fund	9.47%	11.16%	11.36%	6.11%	11.77%	21.36%	1.77%	2.92%	10.34%	7.05%	3.13%	12.28%

Frequently Asked Questions

Can I hold both SCHM and VSEQX in my portfolio?

With a correlation of 0.95, SCHM and VSEQX 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, SCHM or VSEQX?

SCHM has higher volatility (5.91%) compared to VSEQX (4.40%). In terms of maximum drawdown, SCHM dropped -42.43% vs VSEQX's -63.55%.

Which has better risk-adjusted returns?

VSEQX currently has the higher Sharpe Ratio (2.26 vs 2.12), 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.