VFIAX vs. SCHD

Last updated Aug 5, 2026

VFIAX (Vanguard 500 Index Fund Admiral Shares) and SCHD (Schwab U.S. Dividend Equity ETF) are both funds - VFIAX is a S&P 500 fund tracking the S&P 500 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, VFIAX returned 15.14%/yr vs 12.80%/yr for SCHD. Their correlation of 0.81 means they have usually moved in the same direction. VFIAX charges 0.04%/yr vs 0.06%/yr for SCHD.

Performance

VFIAX vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard 500 Index Fund Admiral Shares (VFIAX) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFIAX achieves a 11.74% return, which is significantly lower than SCHD's 25.44% return. Over the past 10 years, VFIAX has outperformed SCHD with an annualized return of 15.14%, while SCHD has yielded a comparatively lower 12.80% annualized return.

VFIAX

• 1D: 1.49%
• 1M: 1.63%
• 6M: 10.48%
• YTD: 11.74%
• 1Y: 21.46%
• 3Y*: 20.84%
• 5Y*: 13.10%
• 10Y*: 15.14%
• ALL TIME*: 8.90%

SCHD

• 1D: 0.86%
• 1M: 4.51%
• 6M: 12.81%
• YTD: 25.44%
• 1Y: 31.88%
• 3Y*: 15.21%
• 5Y*: 9.72%
• 10Y*: 12.80%
• ALL TIME*: 13.47%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SCHD Schwab U.S. Dividend Equity ETF	$839.54M	$733.40M	$694.82M
VFIAX Vanguard 500 Index Fund Admiral Shares	$0.00	$0.00	$0.00

VFIAX vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFIAX Vanguard 500 Index Fund Admiral Shares	11.74%	17.83%	24.97%	26.24%	-18.16%	28.65%	18.32%	31.46%	-4.45%	21.78%
SCHD Schwab U.S. Dividend Equity ETF	25.44%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between VFIAX and SCHD is 0.24, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.25
Correlation (3Y) Balances recent behavior with more history.	0.51
Correlation (5Y) Shows whether the relationship held over a longer period.	0.67
Correlation (10Y) Provides a long-term view across more market conditions.	0.75
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.81

Over the past year, the correlation between VFIAX and SCHD has dropped to 0.24 - well below their long-term average of 0.81, suggesting their price drivers have been diverging.

VFIAX vs. SCHD - Sectors Allocation Comparison

Sectors	VFIAX	SCHD
Technology	38.6%	12.7%
Financial Services	11.4%	9.9%
Communication Services	9.9%	6.2%
Consumer Cyclical	9.5%	7.7%
Healthcare	8.9%	20.8%
Industrials	8.5%	7.8%
Consumer Defensive	4.5%	20.6%
Energy	3.0%	14.1%
Utilities	2.2%	0.1%
Real Estate	1.8%	-
Basic Materials	1.7%	1.2%

Return for Risk

VFIAX vs. SCHD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VFIAX

VFIAX Risk / Return Rank: 75
VFIAX Sharpe Ratio Rank: 75
VFIAX Sortino Ratio Rank: 70
VFIAX Omega Ratio Rank: 70
VFIAX Calmar Ratio Rank: 77
VFIAX Martin Ratio Rank: 85

SCHD

SCHD Risk / Return Rank: 95
SCHD Sharpe Ratio Rank: 95
SCHD Sortino Ratio Rank: 96
SCHD Omega Ratio Rank: 94
SCHD Calmar Ratio Rank: 96
SCHD Martin Ratio Rank: 92

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VFIAX vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard 500 Index Fund Admiral Shares (VFIAX) 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.

	VFIAX	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.82	2.90	-1.08
Sortino ratio: Return per unit of downside risk	2.51	4.49	-1.99
Omega ratio: Gain probability vs. loss probability	1.33	1.52	-0.20
Calmar ratio: Return relative to maximum drawdown	2.62	6.94	-4.32
Martin ratio: Return relative to average drawdown	11.27	17.52	-6.25

VFIAX vs. SCHD - Sharpe Ratio Comparison

The current VFIAX Sharpe Ratio is 1.82, which is lower than the SCHD Sharpe Ratio of 2.90. The chart below compares the historical Sharpe Ratios of VFIAX and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VFIAX vs. SCHD - Drawdown Comparison

The maximum VFIAX drawdown since its inception was -55.20%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VFIAX and SCHD.

Drawdown Indicators

	VFIAX	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-55.20%	-33.37%	-21.83%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-4.61%	-4.29%
Max Drawdown (3Y) Largest decline over 3 years	-18.75%	-16.13%	-2.62%
Max Drawdown (5Y) Largest decline over 5 years	-24.53%	-16.85%	-7.68%
Max Drawdown (10Y) Largest decline over 10 years	-33.83%	-33.37%	-0.46%
Current Drawdown Current decline from peak	0.00%	-0.12%	+0.12%
Average Drawdown Average peak-to-trough decline	-9.35%	-3.29%	-6.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.07%	1.82%	+0.25%

Volatility

VFIAX vs. SCHD - Volatility Comparison

Vanguard 500 Index Fund Admiral Shares (VFIAX) and Schwab U.S. Dividend Equity ETF (SCHD) have volatilities of 3.81% and 3.82%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFIAX	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.81%	3.82%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	10.20%	8.01%	+2.19%
Volatility (1Y) Calculated over the trailing 1-year period	12.86%	11.06%	+1.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.03%	14.38%	+2.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.08%	16.73%	+1.35%

VFIAX vs. SCHD - Expense Ratio Comparison

VFIAX 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

VFIAX vs. SCHD - Dividend Comparison

VFIAX's dividend yield for the trailing twelve months is around 1.05%, less than SCHD's 3.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.10%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
VFIAX Vanguard 500 Index Fund Admiral Shares	1.05%	1.12%	1.24%	1.45%	1.68%	1.24%	1.53%	1.87%	2.05%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both VFIAX and SCHD in my portfolio?

VFIAX 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.

Which is riskier, VFIAX or SCHD?

SCHD has higher volatility (3.82%) compared to VFIAX (3.81%). In terms of maximum drawdown, VFIAX dropped -55.20% vs SCHD's -33.37%.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.90 vs 1.82), 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.