VSS vs. SCHC

Last updated Jun 23, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and SCHC (Schwab International Small-Cap Equity ETF) are both Foreign Small & Mid Cap Equities funds - VSS tracks the FTSE Global Small Cap ex US Index while SCHC tracks the FTSE Developed Small Cap ex U.S. Liquid Index. Both are passively managed. Over the past 10 years, VSS returned 8.76%/yr vs 8.68%/yr for SCHC. With a 0.96 correlation, they move nearly in lockstep. VSS charges 0.07%/yr vs 0.08%/yr for SCHC.

Performance

VSS vs. SCHC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and Schwab International Small-Cap Equity ETF (SCHC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSS achieves a 10.76% return, which is significantly higher than SCHC's 8.19% return. Both investments have delivered pretty close results over the past 10 years, with VSS having a 8.76% annualized return and SCHC not far behind at 8.68%.

VSS

• 1D: 0.22%
• 1M: -0.37%
• YTD: 10.76%
• 6M: 11.06%
• 1Y: 26.93%
• 3Y*: 17.08%
• 5Y*: 6.23%
• 10Y*: 8.76%

SCHC

• 1D: -0.20%
• 1M: -1.97%
• YTD: 8.19%
• 6M: 8.34%
• 1Y: 24.95%
• 3Y*: 18.14%
• 5Y*: 6.51%
• 10Y*: 8.68%

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

VSS vs. SCHC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.76%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%
SCHC Schwab International Small-Cap Equity ETF	8.19%	37.59%	1.97%	14.36%	-21.74%	12.02%	10.48%	23.10%	-18.60%	29.42%

Correlation

The correlation between VSS and SCHC is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jan 14, 2010	0.96

The correlation between VSS and SCHC has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

VSS vs. SCHC - Sectors Allocation Comparison

Sectors	VSS	SCHC
Industrials	18.7%	16.1%
Technology	14.5%	6.7%
Basic Materials	12.2%	11.7%
Financial Services	10.1%	13.1%
Consumer Cyclical	9.1%	7.4%
Real Estate	7.1%	5.0%
Healthcare	6.0%	3.7%
Energy	4.4%	4.4%
Consumer Defensive	3.5%	3.1%
Utilities	2.5%	2.2%
Communication Services	2.3%	2.2%

Return for Risk

VSS vs. SCHC — Risk / Return Rank

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

VSS

VSS Risk / Return Rank: 51
VSS Sharpe Ratio Rank: 53
VSS Sortino Ratio Rank: 50
VSS Omega Ratio Rank: 53
VSS Calmar Ratio Rank: 48
VSS Martin Ratio Rank: 52

SCHC

SCHC Risk / Return Rank: 44
SCHC Sharpe Ratio Rank: 46
SCHC Sortino Ratio Rank: 44
SCHC Omega Ratio Rank: 45
SCHC Calmar Ratio Rank: 41
SCHC Martin Ratio Rank: 45

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.

VSS vs. SCHC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and Schwab International Small-Cap Equity ETF (SCHC). 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.

	VSS	SCHC	Difference
Sharpe ratio: Return per unit of total volatility	1.74	1.55	+0.19
Sortino ratio: Return per unit of downside risk	2.38	2.17	+0.21
Omega ratio: Gain probability vs. loss probability	1.32	1.28	+0.04
Calmar ratio: Return relative to maximum drawdown	2.33	2.01	+0.32
Martin ratio: Return relative to average drawdown	8.70	7.33	+1.37

VSS vs. SCHC - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.74, which is comparable to the SCHC Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of VSS and SCHC, 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

VSS vs. SCHC - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, roughly equal to the maximum SCHC drawdown of -43.94%. Use the drawdown chart below to compare losses from any high point for VSS and SCHC.

Drawdown Indicators

	VSS	SCHC	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-43.94%	+0.43%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-12.48%	+0.86%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-15.52%	-0.21%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	-36.48%	+2.55%
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	-43.94%	+0.43%
Current Drawdown Current decline from peak	-2.41%	-4.42%	+2.01%
Average Drawdown Average peak-to-trough decline	-9.62%	-10.04%	+0.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	3.41%	-0.31%

Volatility

VSS vs. SCHC - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and Schwab International Small-Cap Equity ETF (SCHC) have volatilities of 5.97% and 5.84%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSS	SCHC	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.97%	5.84%	+0.13%
Volatility (6M) Calculated over the trailing 6-month period	13.61%	13.93%	-0.32%
Volatility (1Y) Calculated over the trailing 1-year period	15.59%	16.20%	-0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.59%	17.61%	-1.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.28%	18.00%	-0.72%

VSS vs. SCHC - Expense Ratio Comparison

VSS has a 0.07% expense ratio, which is lower than SCHC's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VSS vs. SCHC - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.15%, less than SCHC's 3.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHC Schwab International Small-Cap Equity ETF	3.38%	3.66%	3.72%	2.94%	1.78%	3.02%	1.62%	3.23%	2.51%	2.73%	2.01%	2.34%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.15%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both VSS and SCHC in my portfolio?

With a correlation of 0.97, VSS and SCHC move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VSS or SCHC?

VSS has higher volatility (5.97%) compared to SCHC (5.84%). In terms of maximum drawdown, VSS dropped -43.51% vs SCHC's -43.94%.

Which ETF is better, VSS or SCHC?

On 10-year performance, VSS leads with 8.76% vs 8.68% for SCHC. On fees, VSS is cheaper at 0.07% per year. On volatility, SCHC has been the lower-risk option at 5.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSS or SCHC?

Over the 10-year period, VSS has performed better with a 8.76% return vs 8.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSS or SCHC?

VSS is cheaper with a 0.07% expense ratio, compared with 0.08% for SCHC.

Which ETF pays a higher dividend yield, VSS or SCHC?

SCHC has the higher dividend yield at 3.38%, compared with 3.15% for VSS.

What is the main difference between VSS and SCHC?

VSS tracks FTSE Global Small Cap ex US Index, while SCHC tracks FTSE Developed Small Cap ex U.S. Liquid Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.07% for VSS and 0.08% for SCHC.

Which has better risk-adjusted returns?

VSS currently has the higher Sharpe Ratio (1.74 vs 1.55), 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.