VALQ vs. SCHD

Last updated Jun 24, 2026

VALQ (American Century STOXX U.S. Quality Value ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - VALQ is a Large Cap Value Equities fund tracking the iSTOXX American Century USA Quality Value Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 5 years, VALQ returned 8.88%/yr vs 8.71%/yr for SCHD. Their correlation of 0.87 suggests significant overlap in exposure. VALQ charges 0.29%/yr vs 0.06%/yr for SCHD.

Performance

VALQ vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Century STOXX U.S. Quality Value ETF (VALQ) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VALQ achieves a 4.29% return, which is significantly lower than SCHD's 17.72% return.

VALQ

• 1D: -0.49%
• 1M: -0.37%
• YTD: 4.29%
• 6M: 3.54%
• 1Y: 14.31%
• 3Y*: 14.29%
• 5Y*: 8.88%
• 10Y*: —

SCHD

• 1D: 0.41%
• 1M: -2.47%
• YTD: 17.72%
• 6M: 17.25%
• 1Y: 24.56%
• 3Y*: 14.60%
• 5Y*: 8.71%
• 10Y*: 12.72%

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

VALQ vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VALQ American Century STOXX U.S. Quality Value ETF	4.29%	10.58%	16.71%	13.87%	-7.73%	27.05%	0.64%	24.52%	-10.92%
SCHD Schwab U.S. Dividend Equity ETF	17.72%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-8.29%

Correlation

The correlation between VALQ and SCHD is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Jan 16, 2018	0.87

The correlation between VALQ and SCHD shifts across timeframes, from 0.75 (1 year) to 0.88 (5 years), reflecting how their relationship changes across market environments.

VALQ vs. SCHD - Sectors Allocation Comparison

Sectors	VALQ	SCHD
Technology	33.5%	19.4%
Healthcare	14.9%	18.4%
Consumer Defensive	13.5%	18.5%
Industrials	10.7%	7.4%
Consumer Cyclical	9.4%	6.7%
Communication Services	6.8%	6.0%
Financial Services	4.5%	9.1%
Energy	4.0%	14.6%
Basic Materials	1.9%	1.2%
Real Estate	0.8%	-
Utilities	-	0.0%

Return for Risk

VALQ vs. SCHD — Risk / Return Rank

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

VALQ

VALQ Risk / Return Rank: 38
VALQ Sharpe Ratio Rank: 38
VALQ Sortino Ratio Rank: 39
VALQ Omega Ratio Rank: 36
VALQ Calmar Ratio Rank: 39
VALQ Martin Ratio Rank: 36

SCHD

SCHD Risk / Return Rank: 77
SCHD Sharpe Ratio Rank: 72
SCHD Sortino Ratio Rank: 80
SCHD Omega Ratio Rank: 70
SCHD Calmar Ratio Rank: 90
SCHD Martin Ratio Rank: 71

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.

VALQ vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Century STOXX U.S. Quality Value ETF (VALQ) and Schwab U.S. Dividend Equity ETF (SCHD). 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.

	VALQ	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.28	2.23	-0.95
Sortino ratio: Return per unit of downside risk	1.90	3.40	-1.50
Omega ratio: Gain probability vs. loss probability	1.23	1.40	-0.17
Calmar ratio: Return relative to maximum drawdown	1.83	5.35	-3.52
Martin ratio: Return relative to average drawdown	5.18	12.94	-7.75

VALQ vs. SCHD - Sharpe Ratio Comparison

The current VALQ Sharpe Ratio is 1.28, which is lower than the SCHD Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of VALQ and SCHD, 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

VALQ vs. SCHD - Drawdown Comparison

The maximum VALQ drawdown since its inception was -38.19%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VALQ and SCHD.

Drawdown Indicators

	VALQ	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-38.19%	-33.37%	-4.82%
Max Drawdown (1Y) Largest decline over 1 year	-7.85%	-4.61%	-3.24%
Max Drawdown (3Y) Largest decline over 3 years	-15.62%	-16.13%	+0.51%
Max Drawdown (5Y) Largest decline over 5 years	-20.19%	-16.85%	-3.34%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.37%	—
Current Drawdown Current decline from peak	-2.05%	-2.47%	+0.42%
Average Drawdown Average peak-to-trough decline	-4.92%	-3.31%	-1.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.77%	1.90%	+0.87%

Volatility

VALQ vs. SCHD - Volatility Comparison

American Century STOXX U.S. Quality Value ETF (VALQ) and Schwab U.S. Dividend Equity ETF (SCHD) have volatilities of 3.59% and 3.58%, 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

	VALQ	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.59%	3.58%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	8.30%	7.73%	+0.57%
Volatility (1Y) Calculated over the trailing 1-year period	11.26%	11.07%	+0.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.50%	14.36%	+0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.63%	16.71%	+0.92%

VALQ vs. SCHD - Expense Ratio Comparison

VALQ has a 0.29% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

VALQ vs. SCHD - Dividend Comparison

VALQ's dividend yield for the trailing twelve months is around 2.35%, less than SCHD's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.30%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
VALQ American Century STOXX U.S. Quality Value ETF	2.35%	1.88%	1.58%	1.76%	2.71%	1.58%	2.08%	2.31%	2.35%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VALQ and SCHD in my portfolio?

VALQ and SCHD have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VALQ or SCHD?

VALQ has higher volatility (3.59%) compared to SCHD (3.58%). In terms of maximum drawdown, VALQ dropped -38.19% vs SCHD's -33.37%.

Which ETF is better, VALQ or SCHD?

On 5-year performance, VALQ leads with 8.88% vs 8.71% for SCHD. On fees, SCHD is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VALQ or SCHD?

Over the 5-year period, VALQ has performed better with a 8.88% return vs 8.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VALQ or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.29% for VALQ.

Which ETF pays a higher dividend yield, VALQ or SCHD?

SCHD has the higher dividend yield at 3.30%, compared with 2.35% for VALQ.

What is the main difference between VALQ and SCHD?

VALQ is categorized as Large Cap Value Equities, while SCHD is Dividend. VALQ tracks iSTOXX American Century USA Quality Value Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: American Century and Charles Schwab. Their fees differ too: 0.29% for VALQ and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.23 vs 1.28), 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.