VCIT vs. SCHO
VCIT (Vanguard Intermediate-Term Corporate Bond ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both exchange-traded funds - VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond 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, VCIT returned 2.93%/yr vs 1.71%/yr for SCHO. A 0.64 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
VCIT vs. SCHO - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VCIT achieves a 0.41% return, which is significantly lower than SCHO's 0.54% return. Over the past 10 years, VCIT has outperformed SCHO with an annualized return of 2.93%, while SCHO has yielded a comparatively lower 1.71% annualized return.
VCIT
- 1D
- -0.07%
- 1M
- 0.96%
- YTD
- 0.41%
- 6M
- 0.89%
- 1Y
- 6.00%
- 3Y*
- 6.37%
- 5Y*
- 1.11%
- 10Y*
- 2.93%
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%
VCIT vs. SCHO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.41% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
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 VCIT and SCHO is 0.74, 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 | 0.74 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.76 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.75 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Aug 5, 2010 | 0.64 |
The correlation between VCIT and SCHO shifts across timeframes, from 0.64 (all time) to 0.76 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VCIT vs. SCHO — Risk / Return Rank
VCIT
SCHO
VCIT vs. SCHO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) 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.
| VCIT | SCHO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.10 | ||
| Sortino ratioReturn per unit of downside risk | -2.00 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.50 | -0.25 |
| Calmar ratioReturn relative to maximum drawdown | 1.88 | 3.91 | -2.03 |
| Martin ratioReturn relative to average drawdown | 6.07 | 16.48 | -10.41 |
Loading charts...
Drawdowns
VCIT vs. SCHO - Drawdown Comparison
The maximum VCIT drawdown since its inception was -20.56%, which is greater than SCHO's maximum drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for VCIT and SCHO.
Loading charts...
Drawdown Indicators
| VCIT | SCHO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.56% | -5.69% | -14.87% |
Max Drawdown (1Y)Largest decline over 1 year | -2.96% | -0.86% | -2.10% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -0.98% | -5.13% |
Max Drawdown (5Y)Largest decline over 5 years | -20.56% | -5.69% | -14.87% |
Max Drawdown (10Y)Largest decline over 10 years | -20.56% | -5.69% | -14.87% |
Current DrawdownCurrent decline from peak | -1.13% | -0.14% | -0.99% |
Average DrawdownAverage peak-to-trough decline | -3.16% | -0.61% | -2.55% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.20% | +0.72% |
Volatility
VCIT vs. SCHO - Volatility Comparison
Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a higher volatility of 1.48% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.43%. This indicates that VCIT'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.
Loading charts...
Volatility by Period
| VCIT | SCHO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.48% | 0.43% | +1.05% |
Volatility (6M)Calculated over the trailing 6-month period | 3.15% | 0.93% | +2.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.10% | 1.37% | +2.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.62% | 1.98% | +4.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.28% | 1.56% | +4.72% |
VCIT vs. SCHO - Expense Ratio Comparison
Both VCIT and SCHO 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
VCIT vs. SCHO - Dividend Comparison
VCIT's dividend yield for the trailing twelve months is around 4.79%, more 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% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.79% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
Frequently Asked Questions
VCIT and SCHO have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCIT has higher volatility (1.48%) compared to SCHO (0.43%). In terms of maximum drawdown, VCIT dropped -20.56% vs SCHO's -5.69%.
On 10-year performance, VCIT leads with 2.93% 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.
Over the 10-year period, VCIT has performed better with a 2.93% return vs 1.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT and SCHO have the same expense ratio: 0.03% per year.
VCIT has the higher dividend yield at 4.79%, compared with 3.90% for SCHO.
VCIT is categorized as Corporate Bonds, while SCHO is Government Bonds. VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index, while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: Vanguard and Charles Schwab.
SCHO currently has the higher Sharpe Ratio (2.46 vs 1.36), 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.
Find the right allocation for VCIT and SCHO
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer