VBCE vs. SCHI

Last updated Jun 26, 2026

VBCE (Vanguard Target Maturity 2031 Corporate Bond ETF) and SCHI (Schwab 5-10 Year Corporate Bond ETF) are both Corporate Bonds funds - VBCE tracks the ICE 2031 Maturity US Corporate Constrained Index while SCHI tracks the Bloomberg US 5-10 Year Corporate Bond Index. Both are passively managed. With a 0.96 correlation, they move nearly in lockstep. VBCE charges 0.08%/yr vs 0.03%/yr for SCHI.

Performance

VBCE vs. SCHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2031 Corporate Bond ETF (VBCE) and Schwab 5-10 Year Corporate Bond ETF (SCHI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCE

• 1D: 0.11%
• 1M: 0.52%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SCHI

• 1D: 0.13%
• 1M: 0.72%
• YTD: 0.82%
• 6M: 0.64%
• 1Y: 5.33%
• 3Y*: 6.23%
• 5Y*: 1.30%
• 10Y*: —

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

VBCE vs. SCHI - Yearly Performance Comparison

	2026 (YTD)
VBCE Vanguard Target Maturity 2031 Corporate Bond ETF	1.31%
SCHI Schwab 5-10 Year Corporate Bond ETF	1.38%

Correlation

The correlation between VBCE and SCHI is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 26, 2026	0.96

Return for Risk

VBCE vs. SCHI — Risk / Return Rank

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

VBCE

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

SCHI

SCHI Risk / Return Rank: 40
SCHI Sharpe Ratio Rank: 42
SCHI Sortino Ratio Rank: 42
SCHI Omega Ratio Rank: 38
SCHI Calmar Ratio Rank: 40
SCHI Martin Ratio Rank: 40

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.

VBCE vs. SCHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2031 Corporate Bond ETF (VBCE) and Schwab 5-10 Year Corporate Bond ETF (SCHI). 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.

	VBCE	SCHI	Difference
Sharpe ratio: Return per unit of total volatility	—	1.30	—
Sortino ratio: Return per unit of downside risk	—	1.92	—
Omega ratio: Gain probability vs. loss probability	—	1.23	—
Calmar ratio: Return relative to maximum drawdown	—	1.78	—
Martin ratio: Return relative to average drawdown	—	5.69	—

Drawdowns

VBCE vs. SCHI - Drawdown Comparison

The maximum VBCE drawdown since its inception was -1.53%, smaller than the maximum SCHI drawdown of -20.67%. Use the drawdown chart below to compare losses from any high point for VBCE and SCHI.

Drawdown Indicators

	VBCE	SCHI	Difference
Max Drawdown Largest peak-to-trough decline	-1.53%	-20.67%	+19.14%
Max Drawdown (1Y) Largest decline over 1 year	—	-3.01%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-6.14%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-20.67%	—
Current Drawdown Current decline from peak	-0.21%	-0.75%	+0.54%
Average Drawdown Average peak-to-trough decline	-0.49%	-5.67%	+5.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.94%	—

Volatility

Volatility by Period

	VBCE	SCHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.23%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.21%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.82%	4.12%	-0.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.82%	6.67%	-2.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.82%	7.38%	-3.56%

VBCE vs. SCHI - Expense Ratio Comparison

VBCE has a 0.08% expense ratio, which is higher than SCHI'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

VBCE vs. SCHI - Dividend Comparison

VBCE's dividend yield for the trailing twelve months is around 0.47%, less than SCHI's 5.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
SCHI Schwab 5-10 Year Corporate Bond ETF	5.02%	4.99%	5.11%	4.27%	3.10%	1.93%	2.31%	0.53%
VBCE Vanguard Target Maturity 2031 Corporate Bond ETF	0.47%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VBCE and SCHI in my portfolio?

With a correlation of 0.96, VBCE and SCHI 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 ETF is better, VBCE or SCHI?

On fees, SCHI is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBCE or SCHI?

SCHI is cheaper with a 0.03% expense ratio, compared with 0.08% for VBCE.

Which ETF pays a higher dividend yield, VBCE or SCHI?

SCHI has the higher dividend yield at 5.02%, compared with 0.47% for VBCE.

What is the main difference between VBCE and SCHI?

VBCE tracks ICE 2031 Maturity US Corporate Constrained Index, while SCHI tracks Bloomberg US 5-10 Year Corporate Bond Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.08% for VBCE and 0.03% for SCHI.