VOO vs. SCHO

Last updated Jun 9, 2026

VOO (Vanguard S&P 500 ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both exchange-traded funds - VOO is a S&P 500 fund tracking the S&P 500 Index, while SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, VOO returned 15.35%/yr vs 1.69%/yr for SCHO. At a correlation of -0.13, they often move in opposite directions. Both charge a 0.03% expense ratio.

Performance

VOO vs. SCHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard S&P 500 ETF (VOO) and Schwab Short-Term U.S. Treasury ETF (SCHO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VOO achieves a 8.72% return, which is significantly higher than SCHO's 0.33% return. Over the past 10 years, VOO has outperformed SCHO with an annualized return of 15.35%, while SCHO has yielded a comparatively lower 1.69% annualized return.

VOO

• 1D: 0.25%
• 1M: 0.24%
• YTD: 8.72%
• 6M: 8.77%
• 1Y: 24.91%
• 3Y*: 21.45%
• 5Y*: 13.49%
• 10Y*: 15.35%

SCHO

• 1D: 0.04%
• 1M: -0.23%
• YTD: 0.33%
• 6M: 0.82%
• 1Y: 3.43%
• 3Y*: 4.15%
• 5Y*: 1.78%
• 10Y*: 1.69%

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

VOO vs. SCHO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VOO Vanguard S&P 500 ETF	8.72%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%
SCHO Schwab Short-Term U.S. Treasury ETF	0.33%	5.49%	3.65%	4.31%	-3.87%	-0.64%	3.11%	3.47%	1.37%	0.33%

Correlation

The correlation between VOO and SCHO is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (3Y) Calculated over the trailing 3-year period	0.07
Correlation (5Y) Calculated over the trailing 5-year period	0.06
Correlation (10Y) Calculated over the trailing 10-year period	-0.07
Correlation (All Time) Calculated using the full available price history since Sep 10, 2010	-0.13

The correlation between VOO and SCHO shifts across timeframes, from -0.13 (all time) to 0.20 (1 year), reflecting how their relationship changes across market environments.

VOO vs. SCHO - Sectors Allocation Comparison

Sectors	VOO	SCHO
Technology	35.7%	1.1%
Financial Services	11.6%	0.2%
Communication Services	11.3%	1.1%
Consumer Cyclical	10.2%	-
Healthcare	8.5%	-
Industrials	8.3%	-
Consumer Defensive	4.9%	-
Energy	3.5%	-
Utilities	2.4%	-
Real Estate	1.9%	-
Basic Materials	1.8%	-

Return for Risk

VOO vs. SCHO — Risk / Return Rank

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

VOO

VOO Risk / Return Rank: 69
VOO Sharpe Ratio Rank: 71
VOO Sortino Ratio Rank: 68
VOO Omega Ratio Rank: 71
VOO Calmar Ratio Rank: 62
VOO Martin Ratio Rank: 75

SCHO

SCHO Risk / Return Rank: 87
SCHO Sharpe Ratio Rank: 85
SCHO Sortino Ratio Rank: 92
SCHO Omega Ratio Rank: 89
SCHO Calmar Ratio Rank: 83
SCHO Martin Ratio Rank: 87

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.

VOO vs. SCHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P 500 ETF (VOO) and Schwab Short-Term U.S. Treasury ETF (SCHO). 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.

	VOO	SCHO	Difference
Sharpe ratio: Return per unit of total volatility	2.08	2.52	-0.44
Sortino ratio: Return per unit of downside risk	2.80	4.11	-1.32
Omega ratio: Gain probability vs. loss probability	1.38	1.51	-0.13
Calmar ratio: Return relative to maximum drawdown	2.81	4.01	-1.20
Martin ratio: Return relative to average drawdown	12.97	17.08	-4.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VOO vs. SCHO - Sharpe Ratio Comparison

The current VOO Sharpe Ratio is 2.08, which is comparable to the SCHO Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of VOO and SCHO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VOO	SCHO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.08	2.52	-0.44
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.80	0.90	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.85	1.09	-0.23
Sharpe Ratio (All Time) Calculated using the full available price history	0.88	0.99	-0.11

Drawdowns

VOO vs. SCHO - Drawdown Comparison

The maximum VOO drawdown since its inception was -33.99%, which is greater than SCHO's maximum drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for VOO and SCHO.

Drawdown Indicators

	VOO	SCHO	Difference
Max Drawdown Largest peak-to-trough decline	-33.99%	-5.69%	-28.30%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-0.86%	-8.04%
Max Drawdown (3Y) Largest decline over 3 years	-18.69%	-0.98%	-17.71%
Max Drawdown (5Y) Largest decline over 5 years	-24.52%	-5.69%	-18.83%
Max Drawdown (10Y) Largest decline over 10 years	-33.99%	-5.69%	-28.30%
Current Drawdown Current decline from peak	-2.66%	-0.35%	-2.31%
Average Drawdown Average peak-to-trough decline	-3.69%	-0.61%	-3.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.92%	0.20%	+1.72%

Volatility

VOO vs. SCHO - Volatility Comparison

Vanguard S&P 500 ETF (VOO) has a higher volatility of 3.73% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.44%. This indicates that VOO's price experiences larger fluctuations and is considered to be riskier than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VOO	SCHO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.73%	0.44%	+3.29%
Volatility (6M) Calculated over the trailing 6-month period	9.31%	0.93%	+8.38%
Volatility (1Y) Calculated over the trailing 1-year period	12.08%	1.37%	+10.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.85%	1.98%	+14.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.03%	1.56%	+16.47%

VOO vs. SCHO - Expense Ratio Comparison

Both VOO and SCHO have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VOO vs. SCHO - Dividend Comparison

VOO's dividend yield for the trailing twelve months is around 1.05%, less than SCHO's 3.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHO Schwab Short-Term U.S. Treasury ETF	3.91%	4.06%	4.29%	3.76%	1.34%	0.41%	1.27%	2.27%	1.60%	1.12%	0.82%	0.68%
VOO Vanguard S&P 500 ETF	1.05%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both VOO and SCHO in my portfolio?

VOO and SCHO have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VOO or SCHO?

VOO has higher volatility (3.73%) compared to SCHO (0.44%). In terms of maximum drawdown, VOO dropped -33.99% vs SCHO's -5.69%.

Which ETF is better, VOO or SCHO?

On 10-year performance, VOO leads with 15.35% vs 1.69% for SCHO. Both ETFs have the same 0.03% expense ratio. On volatility, SCHO has been the lower-risk option at 0.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VOO or SCHO?

Over the 10-year period, VOO has performed better with a 15.35% return vs 1.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VOO or SCHO?

VOO and SCHO have the same expense ratio: 0.03% per year.

Which ETF pays a higher dividend yield, VOO or SCHO?

SCHO has the higher dividend yield at 3.91%, compared with 1.05% for VOO.

What is the main difference between VOO and SCHO?

VOO is categorized as S&P 500, while SCHO is Government Bonds. VOO tracks S&P 500 Index, while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: Vanguard and Charles Schwab.

Which has better risk-adjusted returns?

SCHO currently has the higher Sharpe Ratio (2.52 vs 2.08), 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.