VFORX vs. SCHD
Compare and contrast key facts about Vanguard Target Retirement 2040 Fund (VFORX) and Schwab US Dividend Equity ETF (SCHD).
VFORX is managed by Vanguard. It was launched on Jun 7, 2006. SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFORX or SCHD.
Correlation
The correlation between VFORX and SCHD is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VFORX vs. SCHD - Performance Comparison
Key characteristics
VFORX:
1.54
SCHD:
1.20
VFORX:
2.16
SCHD:
1.76
VFORX:
1.29
SCHD:
1.21
VFORX:
2.61
SCHD:
1.69
VFORX:
9.36
SCHD:
5.86
VFORX:
1.62%
SCHD:
2.30%
VFORX:
9.84%
SCHD:
11.25%
VFORX:
-51.63%
SCHD:
-33.37%
VFORX:
-3.07%
SCHD:
-6.72%
Returns By Period
In the year-to-date period, VFORX achieves a 13.03% return, which is significantly higher than SCHD's 11.54% return. Over the past 10 years, VFORX has underperformed SCHD with an annualized return of 8.05%, while SCHD has yielded a comparatively higher 10.86% annualized return.
VFORX
13.03%
-0.74%
5.15%
11.28%
8.11%
8.05%
SCHD
11.54%
-4.06%
7.86%
12.63%
10.97%
10.86%
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VFORX vs. SCHD - Expense Ratio Comparison
VFORX has a 0.08% 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%.
Risk-Adjusted Performance
VFORX vs. SCHD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2040 Fund (VFORX) and Schwab US 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.
Dividends
VFORX vs. SCHD - Dividend Comparison
VFORX's dividend yield for the trailing twelve months is around 2.10%, less than SCHD's 3.64% yield.
TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Vanguard Target Retirement 2040 Fund | 2.10% | 2.38% | 2.10% | 2.39% | 1.62% | 2.28% | 2.41% | 1.91% | 1.98% | 2.16% | 1.93% | 1.77% |
Schwab US Dividend Equity ETF | 3.64% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% | 2.63% | 2.47% |
Drawdowns
VFORX vs. SCHD - Drawdown Comparison
The maximum VFORX drawdown since its inception was -51.63%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VFORX and SCHD. For additional features, visit the drawdowns tool.
Volatility
VFORX vs. SCHD - Volatility Comparison
The current volatility for Vanguard Target Retirement 2040 Fund (VFORX) is 2.77%, while Schwab US Dividend Equity ETF (SCHD) has a volatility of 3.88%. This indicates that VFORX 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.