VCSH vs. SCHD
VCSH (Vanguard Short-Term Corporate Bond ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, VCSH returned 2.70%/yr vs 12.91%/yr for SCHD. At a 0.10 correlation, their price movements are largely independent. VCSH charges 0.04%/yr vs 0.06%/yr for SCHD.
Performance
VCSH vs. SCHD - Performance Comparison
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Returns By Period
In the year-to-date period, VCSH achieves a 0.80% return, which is significantly lower than SCHD's 20.66% return. Over the past 10 years, VCSH has underperformed SCHD with an annualized return of 2.70%, while SCHD has yielded a comparatively higher 12.91% annualized return.
VCSH
- 1D
- -0.03%
- 1M
- 0.24%
- YTD
- 0.80%
- 6M
- 1.22%
- 1Y
- 4.43%
- 3Y*
- 5.69%
- 5Y*
- 2.33%
- 10Y*
- 2.70%
SCHD
- 1D
- 0.89%
- 1M
- 3.37%
- YTD
- 20.66%
- 6M
- 19.57%
- 1Y
- 26.16%
- 3Y*
- 14.90%
- 5Y*
- 8.75%
- 10Y*
- 12.91%
VCSH vs. SCHD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCSH Vanguard Short-Term Corporate Bond ETF | 0.80% | 6.77% | 4.91% | 6.20% | -5.62% | -0.63% | 5.13% | 7.02% | 0.92% | 2.17% |
SCHD Schwab U.S. Dividend Equity ETF | 20.66% | 4.34% | 11.66% | 4.54% | -3.26% | 29.87% | 15.03% | 27.29% | -5.56% | 20.85% |
Correlation
The correlation between VCSH and SCHD is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.24 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.25 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.13 |
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011 | 0.10 |
The correlation between VCSH and SCHD shifts across timeframes, from 0.10 (all time) to 0.25 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VCSH vs. SCHD — Risk / Return Rank
VCSH
SCHD
VCSH vs. SCHD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) 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.
| VCSH | SCHD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.04 | ||
| Sortino ratioReturn per unit of downside risk | -0.01 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.43 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 3.18 | 5.70 | -2.52 |
| Martin ratioReturn relative to average drawdown | 12.95 | 13.97 | -1.02 |
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Drawdowns
VCSH vs. SCHD - Drawdown Comparison
The maximum VCSH drawdown since its inception was -12.86%, smaller than the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VCSH and SCHD.
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Drawdown Indicators
| VCSH | SCHD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.86% | -33.37% | +20.51% |
Max Drawdown (1Y)Largest decline over 1 year | -1.40% | -4.61% | +3.21% |
Max Drawdown (3Y)Largest decline over 3 years | -1.40% | -16.13% | +14.73% |
Max Drawdown (5Y)Largest decline over 5 years | -9.48% | -16.85% | +7.37% |
Max Drawdown (10Y)Largest decline over 10 years | -12.86% | -33.37% | +20.51% |
Current DrawdownCurrent decline from peak | -0.17% | -0.03% | -0.14% |
Average DrawdownAverage peak-to-trough decline | -0.97% | -3.31% | +2.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 1.89% | -1.55% |
Volatility
VCSH vs. SCHD - Volatility Comparison
The current volatility for Vanguard Short-Term Corporate Bond ETF (VCSH) is 0.66%, while Schwab U.S. Dividend Equity ETF (SCHD) has a volatility of 3.05%. This indicates that VCSH experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCSH | SCHD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.66% | 3.05% | -2.39% |
Volatility (6M)Calculated over the trailing 6-month period | 1.42% | 7.53% | -6.11% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.88% | 10.93% | -9.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.88% | 14.38% | -11.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.35% | 16.72% | -13.37% |
VCSH vs. SCHD - Expense Ratio Comparison
VCSH has a 0.04% expense ratio, which is lower than SCHD's 0.06% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VCSH vs. SCHD - Dividend Comparison
VCSH's dividend yield for the trailing twelve months is around 4.45%, more than SCHD's 3.22% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHD Schwab U.S. Dividend Equity ETF | 3.22% | 3.82% | 3.64% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% |
VCSH Vanguard Short-Term Corporate Bond ETF | 4.45% | 4.35% | 3.96% | 3.09% | 2.01% | 1.81% | 2.27% | 2.87% | 2.65% | 2.26% | 2.10% | 2.08% |
Frequently Asked Questions
VCSH and SCHD have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHD has higher volatility (3.05%) compared to VCSH (0.66%). In terms of maximum drawdown, VCSH dropped -12.86% vs SCHD's -33.37%.
On 10-year performance, SCHD leads with 12.91% vs 2.70% for VCSH. On fees, VCSH is cheaper at 0.04% per year. On volatility, VCSH has been the lower-risk option at 0.66%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHD has performed better with a 12.91% return vs 2.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCSH is cheaper with a 0.04% expense ratio, compared with 0.06% for SCHD.
VCSH has the higher dividend yield at 4.45%, compared with 3.22% for SCHD.
VCSH is categorized as Corporate Bonds, while SCHD is Dividend. VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.04% for VCSH and 0.06% for SCHD.
SCHD currently has the higher Sharpe Ratio (2.41 vs 2.37), 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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