SCHO vs. VEA

Last updated Jun 13, 2026

SCHO (Schwab Short-Term U.S. Treasury ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, SCHO returned 1.71%/yr vs 10.72%/yr for VEA. At a correlation of -0.06, they often move in opposite directions. Both charge a 0.03% expense ratio.

Performance

SCHO vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Short-Term U.S. Treasury ETF (SCHO) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHO achieves a 0.54% return, which is significantly lower than VEA's 14.73% return. Over the past 10 years, SCHO has underperformed VEA with an annualized return of 1.71%, while VEA has yielded a comparatively higher 10.72% annualized return.

SCHO

• 1D: 0.00%
• 1M: 0.18%
• YTD: 0.54%
• 6M: 0.82%
• 1Y: 3.35%
• 3Y*: 4.25%
• 5Y*: 1.82%
• 10Y*: 1.71%

VEA

• 1D: 0.34%
• 1M: 1.30%
• YTD: 14.73%
• 6M: 16.65%
• 1Y: 29.82%
• 3Y*: 19.03%
• 5Y*: 9.51%
• 10Y*: 10.72%

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

SCHO vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHO Schwab Short-Term U.S. Treasury ETF	0.54%	5.49%	3.65%	4.31%	-3.87%	-0.64%	3.11%	3.47%	1.37%	0.33%
VEA Vanguard FTSE Developed Markets ETF	14.73%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between SCHO and VEA is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.17
Correlation (10Y) Calculated over the trailing 10-year period	0.01
Correlation (All Time) Calculated using the full available price history since Aug 5, 2010	-0.06

The correlation between SCHO and VEA shifts across timeframes, from -0.06 (all time) to 0.34 (1 year), reflecting how their relationship changes across market environments.

SCHO vs. VEA - Sectors Allocation Comparison

Sectors	SCHO	VEA
Communication Services	1.1%	3.4%
Technology	1.1%	13.8%
Financial Services	0.2%	23.3%
Basic Materials	-	7.5%
Consumer Cyclical	-	7.5%
Consumer Defensive	-	5.6%
Energy	-	5.4%
Healthcare	-	8.2%
Industrials	-	19.2%
Real Estate	-	2.7%
Utilities	-	3.3%

Return for Risk

SCHO vs. VEA — Risk / Return Rank

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

SCHO

SCHO Risk / Return Rank: 88
SCHO Sharpe Ratio Rank: 87
SCHO Sortino Ratio Rank: 92
SCHO Omega Ratio Rank: 89
SCHO Calmar Ratio Rank: 83
SCHO Martin Ratio Rank: 88

VEA

VEA Risk / Return Rank: 62
VEA Sharpe Ratio Rank: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

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.

SCHO vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Short-Term U.S. Treasury ETF (SCHO) and Vanguard FTSE Developed Markets ETF (VEA). 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.

	SCHO	VEA	Difference
Sharpe ratio: Return per unit of total volatility	2.46	1.81	+0.65
Sortino ratio: Return per unit of downside risk	4.02	2.50	+1.51
Omega ratio: Gain probability vs. loss probability	1.50	1.33	+0.17
Calmar ratio: Return relative to maximum drawdown	3.91	2.58	+1.34
Martin ratio: Return relative to average drawdown	16.48	9.92	+6.56

SCHO vs. VEA - Sharpe Ratio Comparison

The current SCHO Sharpe Ratio is 2.46, which is higher than the VEA Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of SCHO and VEA, 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

SCHO vs. VEA - Drawdown Comparison

The maximum SCHO drawdown since its inception was -5.69%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for SCHO and VEA.

Drawdown Indicators

	SCHO	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-5.69%	-60.68%	+54.99%
Max Drawdown (1Y) Largest decline over 1 year	-0.86%	-11.63%	+10.77%
Max Drawdown (3Y) Largest decline over 3 years	-0.98%	-13.45%	+12.47%
Max Drawdown (5Y) Largest decline over 5 years	-5.69%	-29.71%	+24.02%
Max Drawdown (10Y) Largest decline over 10 years	-5.69%	-35.73%	+30.04%
Current Drawdown Current decline from peak	-0.14%	-1.06%	+0.92%
Average Drawdown Average peak-to-trough decline	-0.61%	-13.28%	+12.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	3.02%	-2.82%

Volatility

SCHO vs. VEA - Volatility Comparison

The current volatility for Schwab Short-Term U.S. Treasury ETF (SCHO) is 0.43%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 6.84%. This indicates that SCHO experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHO	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.43%	6.84%	-6.41%
Volatility (6M) Calculated over the trailing 6-month period	0.93%	14.38%	-13.45%
Volatility (1Y) Calculated over the trailing 1-year period	1.37%	16.58%	-15.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.98%	16.72%	-14.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.56%	17.40%	-15.84%

SCHO vs. VEA - Expense Ratio Comparison

Both SCHO and VEA have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

SCHO vs. VEA - Dividend Comparison

SCHO's dividend yield for the trailing twelve months is around 3.90%, more than VEA's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHO Schwab Short-Term U.S. Treasury ETF	3.90%	4.06%	4.29%	3.76%	1.34%	0.41%	1.27%	2.27%	1.60%	1.12%	0.82%	0.68%
VEA Vanguard FTSE Developed Markets ETF	2.62%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both SCHO and VEA in my portfolio?

SCHO and VEA have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHO or VEA?

VEA has higher volatility (6.84%) compared to SCHO (0.43%). In terms of maximum drawdown, SCHO dropped -5.69% vs VEA's -60.68%.

Which ETF is better, SCHO or VEA?

On 10-year performance, VEA leads with 10.72% vs 1.71% for SCHO. Both ETFs have the same 0.03% expense ratio. On volatility, SCHO has been the lower-risk option at 0.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHO or VEA?

Over the 10-year period, VEA has performed better with a 10.72% return vs 1.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHO or VEA?

SCHO and VEA have the same expense ratio: 0.03% per year.

Which ETF pays a higher dividend yield, SCHO or VEA?

SCHO has the higher dividend yield at 3.90%, compared with 2.62% for VEA.

What is the main difference between SCHO and VEA?

SCHO is categorized as Government Bonds, while VEA is Foreign Large Cap Equities. SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: Charles Schwab and Vanguard.

Which has better risk-adjusted returns?

SCHO currently has the higher Sharpe Ratio (2.46 vs 1.81), 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.