VDADX vs. SWDSX

Last updated Jun 3, 2026

VDADX (Vanguard Dividend Appreciation Index Fund Admiral Shares) and SWDSX (Schwab Dividend Equity Fund™) are both mutual funds - VDADX is a Large Cap Blend Equities fund managed by Vanguard, while SWDSX is a Large Cap Value Equities fund managed by Charles Schwab. Over the past 10 years, VDADX returned 13.14%/yr vs 9.05%/yr for SWDSX. Their correlation of 0.91 suggests significant overlap in exposure. VDADX charges 0.08%/yr vs 0.89%/yr for SWDSX.

Performance

VDADX vs. SWDSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX) and Schwab Dividend Equity Fund™ (SWDSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDADX achieves a 6.93% return, which is significantly higher than SWDSX's 6.26% return. Over the past 10 years, VDADX has outperformed SWDSX with an annualized return of 13.14%, while SWDSX has yielded a comparatively lower 9.05% annualized return.

VDADX

• 1D: -0.22%
• 1M: 2.50%
• YTD: 6.93%
• 6M: 7.12%
• 1Y: 19.70%
• 3Y*: 16.24%
• 5Y*: 10.58%
• 10Y*: 13.14%

SWDSX

• 1D: -0.21%
• 1M: 0.48%
• YTD: 6.26%
• 6M: 4.80%
• 1Y: 13.66%
• 3Y*: 14.73%
• 5Y*: 8.70%
• 10Y*: 9.05%

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

VDADX vs. SWDSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDADX Vanguard Dividend Appreciation Index Fund Admiral Shares	6.93%	14.17%	16.99%	14.44%	-9.80%	23.59%	15.47%	29.68%	-2.06%	22.22%
SWDSX Schwab Dividend Equity Fund™	6.26%	12.31%	17.06%	6.92%	-5.84%	28.24%	-4.33%	24.32%	-12.18%	15.40%

Correlation

The correlation between VDADX and SWDSX is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Dec 23, 2013	0.91

The correlation between VDADX and SWDSX has been stable across timeframes, ranging from 0.87 to 0.92 - a consistent structural relationship.

Return for Risk

VDADX vs. SWDSX — Risk / Return Rank

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

VDADX

VDADX Risk / Return Rank: 47
VDADX Sharpe Ratio Rank: 46
VDADX Sortino Ratio Rank: 48
VDADX Omega Ratio Rank: 43
VDADX Calmar Ratio Rank: 45
VDADX Martin Ratio Rank: 51

SWDSX

SWDSX Risk / Return Rank: 31
SWDSX Sharpe Ratio Rank: 27
SWDSX Sortino Ratio Rank: 24
SWDSX Omega Ratio Rank: 28
SWDSX Calmar Ratio Rank: 40
SWDSX Martin Ratio Rank: 37

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.

VDADX vs. SWDSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX) and Schwab Dividend Equity Fund™ (SWDSX). 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.

	VDADX	SWDSX	Difference
Sharpe ratio Return per unit of total volatility	2.01	1.53	+0.48
Sortino ratio Return per unit of downside risk	2.92	2.12	+0.80
Omega ratio Gain probability vs. loss probability	1.36	1.28	+0.08
Calmar ratio Return relative to maximum drawdown	2.59	2.45	+0.14
Martin ratio Return relative to average drawdown	10.48	8.32	+2.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VDADX vs. SWDSX - Sharpe Ratio Comparison

The current VDADX Sharpe Ratio is 2.01, which is higher than the SWDSX Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of VDADX and SWDSX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VDADX	SWDSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.01	1.53	+0.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.66	+0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.54	+0.28
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	0.49	+0.27

Drawdowns

VDADX vs. SWDSX - Drawdown Comparison

The maximum VDADX drawdown since its inception was -31.70%, smaller than the maximum SWDSX drawdown of -50.01%. Use the drawdown chart below to compare losses from any high point for VDADX and SWDSX.

Drawdown Indicators

	VDADX	SWDSX	Difference
Max Drawdown Largest peak-to-trough decline	-31.70%	-50.01%	+18.31%
Max Drawdown (1Y) Largest decline over 1 year	-7.93%	-6.16%	-1.77%
Max Drawdown (3Y) Largest decline over 3 years	-14.95%	-11.67%	-3.28%
Max Drawdown (5Y) Largest decline over 5 years	-20.42%	-17.94%	-2.48%
Max Drawdown (10Y) Largest decline over 10 years	-31.70%	-40.20%	+8.50%
Current Drawdown Current decline from peak	-0.22%	-0.99%	+0.77%
Average Drawdown Average peak-to-trough decline	-3.41%	-6.78%	+3.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	1.81%	+0.15%

Volatility

VDADX vs. SWDSX - Volatility Comparison

Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX) has a higher volatility of 2.24% compared to Schwab Dividend Equity Fund™ (SWDSX) at 2.11%. This indicates that VDADX's price experiences larger fluctuations and is considered to be riskier than SWDSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDADX	SWDSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.24%	2.11%	+0.13%
Volatility (6M) Calculated over the trailing 6-month period	7.64%	7.38%	+0.26%
Volatility (1Y) Calculated over the trailing 1-year period	10.07%	9.24%	+0.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.27%	13.20%	+1.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.19%	16.90%	-0.71%

VDADX vs. SWDSX - Expense Ratio Comparison

VDADX has a 0.08% expense ratio, which is lower than SWDSX's 0.89% expense ratio.

Dividends

VDADX vs. SWDSX - Dividend Comparison

VDADX's dividend yield for the trailing twelve months is around 1.46%, more than SWDSX's 1.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWDSX Schwab Dividend Equity Fund™	1.17%	1.22%	2.59%	2.25%	6.83%	16.25%	2.09%	6.86%	11.63%	10.24%	1.68%	14.46%
VDADX Vanguard Dividend Appreciation Index Fund Admiral Shares	1.46%	1.60%	1.71%	1.86%	1.94%	1.53%	1.61%	1.69%	2.07%	1.88%	2.14%	2.34%

Frequently Asked Questions

Can I hold both VDADX and SWDSX in my portfolio?

VDADX and SWDSX have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VDADX or SWDSX?

VDADX has higher volatility (2.24%) compared to SWDSX (2.11%). In terms of maximum drawdown, VDADX dropped -31.70% vs SWDSX's -50.01%.

Which has better risk-adjusted returns?

VDADX currently has the higher Sharpe Ratio (2.01 vs 1.53), 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.