VFMF vs. SCHD

Last updated Jul 14, 2026

VFMF (Vanguard U.S. Multifactor ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - VFMF is a Multi-factor fund actively managed by Vanguard, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. VFMF is actively managed, while SCHD is passively managed. Over the past 5 years, VFMF returned 14.79%/yr vs 9.00%/yr for SCHD. Their correlation of 0.83 suggests significant overlap in exposure. VFMF charges 0.18%/yr vs 0.06%/yr for SCHD.

Performance

VFMF vs. SCHD - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with VFMF having a 20.33% return and SCHD slightly higher at 20.66%.

VFMF

• 1D: 0.17%
• 1M: 2.16%
• 6M: 16.06%
• YTD: 20.33%
• 1Y: 35.05%
• 3Y*: 21.59%
• 5Y*: 14.79%
• 10Y*: —

SCHD

• 1D: 0.49%
• 1M: -0.00%
• 6M: 16.13%
• YTD: 20.66%
• 1Y: 23.51%
• 3Y*: 14.13%
• 5Y*: 9.00%
• 10Y*: 12.34%

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

VFMF vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFMF Vanguard U.S. Multifactor ETF	20.33%	17.38%	15.60%	18.52%	-5.70%	30.05%	4.99%	22.34%	-10.89%
SCHD Schwab U.S. Dividend Equity ETF	20.66%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-4.21%

Correlation

The correlation between VFMF and SCHD is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.83

Over the past year, the correlation between VFMF and SCHD has dropped to 0.63 - well below their long-term average of 0.83, suggesting their price drivers have been diverging.

VFMF vs. SCHD - Sectors Allocation Comparison

Sectors	VFMF	SCHD
Financial Services	24.6%	9.1%
Healthcare	16.9%	18.4%
Consumer Cyclical	13.6%	6.7%
Technology	12.9%	19.4%
Industrials	8.5%	7.4%
Energy	7.0%	14.6%
Consumer Defensive	6.8%	18.5%
Communication Services	4.8%	6.0%
Basic Materials	4.0%	1.2%
Real Estate	0.3%	-
Utilities	0.2%	0.0%

Return for Risk

VFMF vs. SCHD — Risk / Return Rank

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

VFMF

VFMF Risk / Return Rank: 93
VFMF Sharpe Ratio Rank: 93
VFMF Sortino Ratio Rank: 94
VFMF Omega Ratio Rank: 91
VFMF Calmar Ratio Rank: 93
VFMF Martin Ratio Rank: 93

SCHD

SCHD Risk / Return Rank: 86
SCHD Sharpe Ratio Rank: 85
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 82
SCHD Calmar Ratio Rank: 93
SCHD Martin Ratio Rank: 81

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.

VFMF vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Multifactor ETF (VFMF) 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.

	VFMF	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	2.70	2.17	+0.54
Sortino ratio: Return per unit of downside risk	3.85	3.32	+0.53
Omega ratio: Gain probability vs. loss probability	1.48	1.38	+0.09
Calmar ratio: Return relative to maximum drawdown	4.98	5.12	-0.14
Martin ratio: Return relative to average drawdown	18.90	12.47	+6.44

VFMF vs. SCHD - Sharpe Ratio Comparison

The current VFMF Sharpe Ratio is 2.70, which is comparable to the SCHD Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of VFMF 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

VFMF vs. SCHD - Drawdown Comparison

The maximum VFMF drawdown since its inception was -41.34%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VFMF and SCHD.

Drawdown Indicators

	VFMF	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-41.34%	-33.37%	-7.97%
Max Drawdown (1Y) Largest decline over 1 year	-7.08%	-4.61%	-2.47%
Max Drawdown (3Y) Largest decline over 3 years	-20.57%	-16.13%	-4.44%
Max Drawdown (5Y) Largest decline over 5 years	-20.57%	-16.85%	-3.72%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.37%	—
Current Drawdown Current decline from peak	0.00%	-0.03%	+0.03%
Average Drawdown Average peak-to-trough decline	-5.67%	-3.31%	-2.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.86%	1.89%	-0.03%

Volatility

VFMF vs. SCHD - Volatility Comparison

The current volatility for Vanguard U.S. Multifactor ETF (VFMF) is 2.71%, while Schwab U.S. Dividend Equity ETF (SCHD) has a volatility of 3.54%. This indicates that VFMF 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.

Volatility by Period

	VFMF	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.71%	3.54%	-0.83%
Volatility (6M) Calculated over the trailing 6-month period	9.14%	7.70%	+1.44%
Volatility (1Y) Calculated over the trailing 1-year period	13.06%	10.93%	+2.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.91%	14.36%	+3.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.05%	16.70%	+4.35%

VFMF vs. SCHD - Expense Ratio Comparison

VFMF has a 0.18% expense ratio, which is higher than SCHD's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VFMF vs. SCHD - Dividend Comparison

VFMF's dividend yield for the trailing twelve months is around 1.36%, less 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%
VFMF Vanguard U.S. Multifactor ETF	1.36%	1.54%	1.60%	1.78%	2.21%	1.39%	1.56%	1.61%	1.22%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VFMF and SCHD in my portfolio?

VFMF and SCHD have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFMF or SCHD?

SCHD has higher volatility (3.54%) compared to VFMF (2.71%). In terms of maximum drawdown, VFMF dropped -41.34% vs SCHD's -33.37%.

Which ETF is better, VFMF or SCHD?

On 5-year performance, VFMF leads with 14.79% vs 9.00% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, VFMF has been the lower-risk option at 2.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFMF or SCHD?

Over the 5-year period, VFMF has performed better with a 14.79% return vs 9.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFMF or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.18% for VFMF.

Which ETF pays a higher dividend yield, VFMF or SCHD?

SCHD has the higher dividend yield at 3.22%, compared with 1.36% for VFMF.

What is the main difference between VFMF and SCHD?

VFMF is categorized as Multi-factor, while SCHD is Dividend. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.18% for VFMF and 0.06% for SCHD.

Which has better risk-adjusted returns?

VFMF currently has the higher Sharpe Ratio (2.70 vs 2.17), 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.