VEA vs. SCHP

Last updated Jun 9, 2026

VEA (Vanguard FTSE Developed Markets ETF) and SCHP (Schwab U.S. TIPS ETF) are both exchange-traded funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while SCHP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). Both are passively managed. Over the past 10 years, VEA returned 10.14%/yr vs 2.53%/yr for SCHP. At a correlation of -0.02, they often move in opposite directions. Both charge a 0.03% expense ratio.

Performance

VEA vs. SCHP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and Schwab U.S. TIPS ETF (SCHP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEA achieves a 12.02% return, which is significantly higher than SCHP's 0.96% return. Over the past 10 years, VEA has outperformed SCHP with an annualized return of 10.14%, while SCHP has yielded a comparatively lower 2.53% annualized return.

VEA

• 1D: 1.00%
• 1M: -1.37%
• YTD: 12.02%
• 6M: 14.95%
• 1Y: 28.06%
• 3Y*: 18.65%
• 5Y*: 9.09%
• 10Y*: 10.14%

SCHP

• 1D: -0.19%
• 1M: -0.89%
• YTD: 0.96%
• 6M: 0.95%
• 1Y: 4.80%
• 3Y*: 3.84%
• 5Y*: 1.02%
• 10Y*: 2.53%

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

VEA vs. SCHP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	12.02%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
SCHP Schwab U.S. TIPS ETF	0.96%	6.76%	1.95%	3.91%	-12.02%	5.87%	10.86%	8.52%	-1.78%	3.02%

Correlation

The correlation between VEA and SCHP is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.23
Correlation (10Y) Calculated over the trailing 10-year period	0.12
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010	-0.02

The correlation between VEA and SCHP shifts across timeframes, from -0.02 (all time) to 0.31 (1 year), reflecting how their relationship changes across market environments.

VEA vs. SCHP - Sectors Allocation Comparison

Sectors	VEA	SCHP
Financial Services	23.3%	0.0%
Industrials	19.2%	-
Technology	13.8%	-
Healthcare	8.2%	-
Basic Materials	7.5%	-
Consumer Cyclical	7.5%	100.0%
Consumer Defensive	5.6%	-
Energy	5.4%	-
Communication Services	3.4%	-
Utilities	3.3%	-
Real Estate	2.7%	-

Return for Risk

VEA vs. SCHP — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 56
VEA Sharpe Ratio Rank: 57
VEA Sortino Ratio Rank: 55
VEA Omega Ratio Rank: 57
VEA Calmar Ratio Rank: 54
VEA Martin Ratio Rank: 58

SCHP

SCHP Risk / Return Rank: 49
SCHP Sharpe Ratio Rank: 46
SCHP Sortino Ratio Rank: 50
SCHP Omega Ratio Rank: 45
SCHP Calmar Ratio Rank: 56
SCHP Martin Ratio Rank: 49

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.

VEA vs. SCHP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Schwab U.S. TIPS ETF (SCHP). 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.

	VEA	SCHP	Difference
Sharpe ratio: Return per unit of total volatility	1.75	1.47	+0.28
Sortino ratio: Return per unit of downside risk	2.39	2.23	+0.17
Omega ratio: Gain probability vs. loss probability	1.32	1.26	+0.06
Calmar ratio: Return relative to maximum drawdown	2.42	2.50	-0.07
Martin ratio: Return relative to average drawdown	9.39	7.59	+1.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEA vs. SCHP - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.75, which is comparable to the SCHP Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of VEA and SCHP, 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

	VEA	SCHP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	1.47	+0.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.55	0.17	+0.38
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.45	+0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.50	-0.26

Drawdowns

VEA vs. SCHP - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than SCHP's maximum drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for VEA and SCHP.

Drawdown Indicators

	VEA	SCHP	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-14.26%	-46.42%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-1.93%	-9.70%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-4.48%	-8.97%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-14.26%	-15.45%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-14.26%	-21.47%
Current Drawdown Current decline from peak	-3.40%	-0.89%	-2.51%
Average Drawdown Average peak-to-trough decline	-13.29%	-3.93%	-9.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.00%	0.63%	+2.37%

Volatility

VEA vs. SCHP - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 6.03% compared to Schwab U.S. TIPS ETF (SCHP) at 1.00%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than SCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	SCHP	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.03%	1.00%	+5.03%
Volatility (6M) Calculated over the trailing 6-month period	13.91%	2.24%	+11.67%
Volatility (1Y) Calculated over the trailing 1-year period	16.15%	3.29%	+12.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.63%	6.12%	+10.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.40%	5.59%	+11.81%

VEA vs. SCHP - Expense Ratio Comparison

Both VEA and SCHP 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

VEA vs. SCHP - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.69%, less than SCHP's 4.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHP Schwab U.S. TIPS ETF	4.01%	4.06%	2.99%	3.02%	7.19%	4.39%	1.11%	2.02%	2.26%	1.90%	1.38%	0.28%
VEA Vanguard FTSE Developed Markets ETF	2.69%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both VEA and SCHP in my portfolio?

VEA and SCHP have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEA or SCHP?

VEA has higher volatility (6.03%) compared to SCHP (1.00%). In terms of maximum drawdown, VEA dropped -60.68% vs SCHP's -14.26%.

Which ETF is better, VEA or SCHP?

On 10-year performance, VEA leads with 10.14% vs 2.53% for SCHP. Both ETFs have the same 0.03% expense ratio. On volatility, SCHP has been the lower-risk option at 1.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or SCHP?

Over the 10-year period, VEA has performed better with a 10.14% return vs 2.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or SCHP?

VEA and SCHP have the same expense ratio: 0.03% per year.

Which ETF pays a higher dividend yield, VEA or SCHP?

SCHP has the higher dividend yield at 4.01%, compared with 2.69% for VEA.

What is the main difference between VEA and SCHP?

VEA is categorized as Foreign Large Cap Equities, while SCHP is Inflation-Protected Bonds. VEA tracks FTSE Developed All Cap ex US Index, while SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). They also come from different issuers: Vanguard and Charles Schwab.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.75 vs 1.47), 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.