VLU vs. SCHD
Compare and contrast key facts about SPDR S&P 1500 Value Tilt ETF (VLU) and Schwab US Dividend Equity ETF (SCHD).
VLU and SCHD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VLU is a passively managed fund by State Street that tracks the performance of the S&P 1500 Low Valuation Tilt Index. It was launched on Oct 24, 2012. 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. Both VLU and SCHD are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VLU or SCHD.
Key characteristics
| VLU | SCHD | |
|---|---|---|
| YTD Return | 22.23% | 18.08% |
| 1Y Return | 35.29% | 30.78% |
| 3Y Return (Ann) | 9.89% | 7.17% |
| 5Y Return (Ann) | 14.45% | 13.03% |
| 10Y Return (Ann) | 14.80% | 11.72% |
| Sharpe Ratio | 3.28 | 2.85 |
| Sortino Ratio | 4.57 | 4.10 |
| Omega Ratio | 1.61 | 1.51 |
| Calmar Ratio | 6.20 | 3.16 |
| Martin Ratio | 21.21 | 15.75 |
| Ulcer Index | 1.75% | 2.04% |
| Daily Std Dev | 11.27% | 11.24% |
| Max Drawdown | -37.38% | -33.37% |
| Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between VLU and SCHD is 0.69, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VLU vs. SCHD - Performance Comparison
In the year-to-date period, VLU achieves a 22.23% return, which is significantly higher than SCHD's 18.08% return. Over the past 10 years, VLU has outperformed SCHD with an annualized return of 14.80%, while SCHD has yielded a comparatively lower 11.72% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VLU vs. SCHD - Expense Ratio Comparison
VLU has a 0.12% 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
VLU vs. SCHD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR S&P 1500 Value Tilt ETF (VLU) 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
VLU vs. SCHD - Dividend Comparison
VLU's dividend yield for the trailing twelve months is around 1.84%, less than SCHD's 3.35% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VLU SPDR S&P 1500 Value Tilt ETF | 1.84% | 2.02% | 2.16% | 1.86% | 1.98% | 2.19% | 2.57% | 1.95% | 2.14% | 6.37% | 5.42% | 3.41% |
SCHD Schwab US Dividend Equity ETF | 3.35% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% | 2.63% | 2.47% |
Drawdowns
VLU vs. SCHD - Drawdown Comparison
The maximum VLU drawdown since its inception was -37.38%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VLU and SCHD. For additional features, visit the drawdowns tool.
Volatility
VLU vs. SCHD - Volatility Comparison
SPDR S&P 1500 Value Tilt ETF (VLU) has a higher volatility of 4.23% compared to Schwab US Dividend Equity ETF (SCHD) at 3.41%. This indicates that VLU'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.