VB vs. SCHO
VB (Vanguard Small-Cap ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both exchange-traded funds - VB is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index, while SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, VB returned 11.61%/yr vs 1.71%/yr for SCHO. At a correlation of -0.12, they often move in opposite directions. VB charges 0.05%/yr vs 0.03%/yr for SCHO.
Performance
VB vs. SCHO - Performance Comparison
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Returns By Period
In the year-to-date period, VB achieves a 15.33% return, which is significantly higher than SCHO's 0.54% return. Over the past 10 years, VB has outperformed SCHO with an annualized return of 11.61%, while SCHO has yielded a comparatively lower 1.71% annualized return.
VB
- 1D
- 0.70%
- 1M
- 5.17%
- YTD
- 15.33%
- 6M
- 13.69%
- 1Y
- 30.83%
- 3Y*
- 16.14%
- 5Y*
- 6.98%
- 10Y*
- 11.61%
SCHO
- 1D
- 0.00%
- 1M
- 0.27%
- YTD
- 0.54%
- 6M
- 0.82%
- 1Y
- 3.43%
- 3Y*
- 4.25%
- 5Y*
- 1.82%
- 10Y*
- 1.71%
VB vs. SCHO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VB Vanguard Small-Cap ETF | 15.33% | 8.87% | 14.17% | 18.22% | -17.51% | 17.57% | 19.19% | 27.34% | -9.34% | 16.26% |
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% |
Correlation
The correlation between VB and SCHO is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.12 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.08 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.06 |
Correlation (All Time) Calculated using the full available price history since Aug 5, 2010 | -0.12 |
The correlation between VB and SCHO shifts across timeframes, from -0.12 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VB vs. SCHO — Risk / Return Rank
VB
SCHO
VB vs. SCHO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap ETF (VB) and Schwab Short-Term U.S. Treasury ETF (SCHO). 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.
| VB | SCHO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.73 | ||
| Sortino ratioReturn per unit of downside risk | -1.55 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.50 | -0.20 |
| Calmar ratioReturn relative to maximum drawdown | 3.21 | 3.91 | -0.70 |
| Martin ratioReturn relative to average drawdown | 11.80 | 16.48 | -4.68 |
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Drawdowns
VB vs. SCHO - Drawdown Comparison
The maximum VB drawdown since its inception was -59.56%, which is greater than SCHO's maximum drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for VB and SCHO.
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Drawdown Indicators
| VB | SCHO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.56% | -5.69% | -53.87% |
Max Drawdown (1Y)Largest decline over 1 year | -8.98% | -0.86% | -8.12% |
Max Drawdown (3Y)Largest decline over 3 years | -25.36% | -0.98% | -24.38% |
Max Drawdown (5Y)Largest decline over 5 years | -28.15% | -5.69% | -22.46% |
Max Drawdown (10Y)Largest decline over 10 years | -42.05% | -5.69% | -36.36% |
Current DrawdownCurrent decline from peak | 0.00% | -0.14% | +0.14% |
Average DrawdownAverage peak-to-trough decline | -8.43% | -0.61% | -7.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.44% | 0.20% | +2.24% |
Volatility
VB vs. SCHO - Volatility Comparison
Vanguard Small-Cap ETF (VB) has a higher volatility of 5.41% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.43%. This indicates that VB's price experiences larger fluctuations and is considered to be riskier than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VB | SCHO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.41% | 0.43% | +4.98% |
Volatility (6M)Calculated over the trailing 6-month period | 12.24% | 0.93% | +11.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.68% | 1.37% | +15.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.80% | 1.98% | +18.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.44% | 1.56% | +19.88% |
VB vs. SCHO - Expense Ratio Comparison
VB has a 0.05% expense ratio, which is higher than SCHO's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VB vs. SCHO - Dividend Comparison
VB's dividend yield for the trailing twelve months is around 1.18%, less than SCHO's 3.90% 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% |
VB Vanguard Small-Cap ETF | 1.18% | 1.33% | 1.30% | 1.55% | 1.59% | 1.24% | 1.14% | 1.39% | 1.67% | 1.35% | 1.50% | 1.48% |
Frequently Asked Questions
VB and SCHO have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VB has higher volatility (5.41%) compared to SCHO (0.43%). In terms of maximum drawdown, VB dropped -59.56% vs SCHO's -5.69%.
On 10-year performance, VB leads with 11.61% vs 1.71% for SCHO. On fees, SCHO is cheaper at 0.03% per year. 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.
Over the 10-year period, VB has performed better with a 11.61% return vs 1.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHO is cheaper with a 0.03% expense ratio, compared with 0.05% for VB.
SCHO has the higher dividend yield at 3.90%, compared with 1.18% for VB.
VB is categorized as Small Cap Blend Equities, while SCHO is Government Bonds. VB tracks CRSP US Small Cap Index, while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.05% for VB and 0.03% for SCHO.
SCHO currently has the higher Sharpe Ratio (2.46 vs 1.73), 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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