VGK vs. SCHD

Last updated Jun 14, 2026

VGK (Vanguard FTSE Europe ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap 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, VGK returned 10.28%/yr vs 12.91%/yr for SCHD. A 0.70 correlation means they provide meaningful diversification when combined. Both charge a 0.06% expense ratio.

Performance

VGK vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Europe ETF (VGK) 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, VGK achieves a 7.69% return, which is significantly lower than SCHD's 20.66% return. Over the past 10 years, VGK has underperformed SCHD with an annualized return of 10.28%, while SCHD has yielded a comparatively higher 12.91% annualized return.

VGK

• 1D: 0.18%
• 1M: 4.46%
• YTD: 7.69%
• 6M: 9.92%
• 1Y: 19.73%
• 3Y*: 16.69%
• 5Y*: 8.50%
• 10Y*: 10.28%

SCHD

• 1D: 0.89%
• 1M: 3.47%
• YTD: 20.66%
• 6M: 19.57%
• 1Y: 26.72%
• 3Y*: 14.90%
• 5Y*: 8.75%
• 10Y*: 12.91%

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

VGK vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGK Vanguard FTSE Europe ETF	7.69%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%
SCHD Schwab U.S. Dividend Equity ETF	20.66%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between VGK and SCHD is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.70

Over the past year, the correlation between VGK and SCHD has dropped to 0.47 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

VGK vs. SCHD - Sectors Allocation Comparison

Sectors	VGK	SCHD
Financial Services	23.6%	9.1%
Industrials	19.3%	7.4%
Healthcare	11.9%	18.4%
Consumer Defensive	8.4%	18.5%
Technology	8.2%	19.4%
Consumer Cyclical	6.8%	6.7%
Basic Materials	5.3%	1.2%
Energy	5.3%	14.6%
Utilities	4.7%	0.0%
Communication Services	3.3%	6.0%
Real Estate	1.5%	-

Return for Risk

VGK vs. SCHD — Risk / Return Rank

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

VGK

VGK Risk / Return Rank: 36
VGK Sharpe Ratio Rank: 36
VGK Sortino Ratio Rank: 36
VGK Omega Ratio Rank: 34
VGK Calmar Ratio Rank: 34
VGK Martin Ratio Rank: 39

SCHD

SCHD Risk / Return Rank: 87
SCHD Sharpe Ratio Rank: 86
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 83
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.

VGK vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) 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.

	VGK	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.13	2.41	-1.28
Sortino ratio: Return per unit of downside risk	1.68	3.72	-2.04
Omega ratio: Gain probability vs. loss probability	1.20	1.43	-0.23
Calmar ratio: Return relative to maximum drawdown	1.49	5.70	-4.21
Martin ratio: Return relative to average drawdown	5.52	13.97	-8.45

VGK vs. SCHD - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.13, which is lower than the SCHD Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of VGK 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

VGK vs. SCHD - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VGK and SCHD.

Drawdown Indicators

	VGK	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-33.37%	-30.24%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-4.61%	-7.48%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-16.13%	+1.82%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-16.85%	-15.89%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	-33.37%	-3.87%
Current Drawdown Current decline from peak	-0.50%	-0.03%	-0.47%
Average Drawdown Average peak-to-trough decline	-13.33%	-3.31%	-10.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.27%	1.89%	+1.38%

Volatility

VGK vs. SCHD - Volatility Comparison

Vanguard FTSE Europe ETF (VGK) has a higher volatility of 5.82% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.05%. This indicates that VGK's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGK	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.82%	3.05%	+2.77%
Volatility (6M) Calculated over the trailing 6-month period	13.36%	7.53%	+5.83%
Volatility (1Y) Calculated over the trailing 1-year period	15.92%	10.93%	+4.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.98%	14.38%	+3.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.95%	16.72%	+2.23%

VGK vs. SCHD - Expense Ratio Comparison

Both VGK and SCHD have an expense ratio of 0.06%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VGK vs. SCHD - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.76%, 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%
VGK Vanguard FTSE Europe ETF	2.76%	2.86%	3.61%	3.15%	3.25%	3.05%	2.11%	3.27%	3.95%	2.70%	3.52%	3.25%

Frequently Asked Questions

Can I hold both VGK and SCHD in my portfolio?

VGK and SCHD have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGK or SCHD?

VGK has higher volatility (5.82%) compared to SCHD (3.05%). In terms of maximum drawdown, VGK dropped -63.61% vs SCHD's -33.37%.

Which ETF is better, VGK or SCHD?

On 10-year performance, SCHD leads with 12.91% vs 10.28% for VGK. Both ETFs have the same 0.06% expense ratio. On volatility, SCHD has been the lower-risk option at 3.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGK or SCHD?

Over the 10-year period, SCHD has performed better with a 12.91% return vs 10.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGK or SCHD?

VGK and SCHD have the same expense ratio: 0.06% per year.

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

SCHD has the higher dividend yield at 3.22%, compared with 2.76% for VGK.

What is the main difference between VGK and SCHD?

VGK is categorized as Europe Equities, while SCHD is Dividend. VGK tracks FTSE Developed Europe All Cap Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Vanguard and Charles Schwab.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.41 vs 1.13), 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.