VRP vs. SCHD
Compare and contrast key facts about Invesco Variable Rate Preferred ETF (VRP) and Schwab US Dividend Equity ETF (SCHD).
VRP and SCHD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VRP is a passively managed fund by Invesco that tracks the performance of the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. It was launched on May 1, 2014. 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 VRP 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: VRP or SCHD.
Key characteristics
| VRP | SCHD | |
|---|---|---|
| YTD Return | 11.33% | 18.08% |
| 1Y Return | 16.67% | 30.78% |
| 3Y Return (Ann) | 3.82% | 7.17% |
| 5Y Return (Ann) | 4.39% | 13.03% |
| 10Y Return (Ann) | 5.09% | 11.72% |
| Sharpe Ratio | 3.80 | 2.85 |
| Sortino Ratio | 5.76 | 4.10 |
| Omega Ratio | 1.80 | 1.51 |
| Calmar Ratio | 3.59 | 3.16 |
| Martin Ratio | 39.77 | 15.75 |
| Ulcer Index | 0.44% | 2.04% |
| Daily Std Dev | 4.58% | 11.24% |
| Max Drawdown | -46.04% | -33.37% |
| Current Drawdown | -0.12% | 0.00% |
Correlation
The correlation between VRP and SCHD is 0.37, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VRP vs. SCHD - Performance Comparison
In the year-to-date period, VRP achieves a 11.33% return, which is significantly lower than SCHD's 18.08% return. Over the past 10 years, VRP has underperformed SCHD with an annualized return of 5.09%, while SCHD has yielded a comparatively higher 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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VRP vs. SCHD - Expense Ratio Comparison
VRP has a 0.50% expense ratio, which is higher than SCHD's 0.06% expense ratio.
Risk-Adjusted Performance
VRP vs. SCHD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Variable Rate Preferred ETF (VRP) 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
VRP vs. SCHD - Dividend Comparison
VRP's dividend yield for the trailing twelve months is around 5.93%, more than SCHD's 3.35% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VRP Invesco Variable Rate Preferred ETF | 5.93% | 6.61% | 5.38% | 4.26% | 4.18% | 5.15% | 5.28% | 4.68% | 5.10% | 5.02% | 3.04% | 0.00% |
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
VRP vs. SCHD - Drawdown Comparison
The maximum VRP drawdown since its inception was -46.04%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VRP and SCHD. For additional features, visit the drawdowns tool.
Volatility
VRP vs. SCHD - Volatility Comparison
The current volatility for Invesco Variable Rate Preferred ETF (VRP) is 1.11%, while Schwab US Dividend Equity ETF (SCHD) has a volatility of 3.41%. This indicates that VRP 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.