VSS vs. SCHH

Last updated Jun 9, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and SCHH (Schwab US REIT ETF) are both exchange-traded funds - VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index, while SCHH is a REIT fund tracking the Dow Jones Equity All REIT Capped Index. Both are passively managed. Over the past 10 years, VSS returned 7.98%/yr vs 4.14%/yr for SCHH. A 0.52 correlation means they provide meaningful diversification when combined. Both charge a 0.07% expense ratio.

Performance

VSS vs. SCHH - 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 US REIT ETF (SCHH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSS achieves a 7.74% return, which is significantly lower than SCHH's 12.43% return. Over the past 10 years, VSS has outperformed SCHH with an annualized return of 7.98%, while SCHH has yielded a comparatively lower 4.14% annualized return.

VSS

• 1D: 0.02%
• 1M: -4.88%
• YTD: 7.74%
• 6M: 10.30%
• 1Y: 22.83%
• 3Y*: 15.44%
• 5Y*: 5.25%
• 10Y*: 7.98%

SCHH

• 1D: -1.35%
• 1M: -0.72%
• YTD: 12.43%
• 6M: 12.55%
• 1Y: 12.92%
• 3Y*: 9.97%
• 5Y*: 2.78%
• 10Y*: 4.14%

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

VSS vs. SCHH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	7.74%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%
SCHH Schwab US REIT ETF	12.43%	2.20%	4.99%	11.18%	-24.99%	41.07%	-14.81%	22.85%	-4.26%	3.68%

Correlation

The correlation between VSS and SCHH is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since Jan 14, 2011	0.52

The correlation between VSS and SCHH shifts across timeframes, from 0.41 (1 year) to 0.55 (5 years), reflecting how their relationship changes across market environments.

VSS vs. SCHH - Sectors Allocation Comparison

Sectors	VSS	SCHH
Industrials	18.7%	-
Technology	13.3%	-
Basic Materials	12.1%	1.3%
Financial Services	10.8%	0.2%
Consumer Cyclical	9.3%	-
Real Estate	7.3%	98.5%
Healthcare	6.2%	-
Energy	4.9%	-
Consumer Defensive	3.4%	-
Utilities	2.5%	-
Communication Services	2.3%	-

Return for Risk

VSS vs. SCHH — Risk / Return Rank

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

VSS

VSS Risk / Return Rank: 47
VSS Sharpe Ratio Rank: 48
VSS Sortino Ratio Rank: 46
VSS Omega Ratio Rank: 49
VSS Calmar Ratio Rank: 44
VSS Martin Ratio Rank: 49

SCHH

SCHH Risk / Return Rank: 31
SCHH Sharpe Ratio Rank: 29
SCHH Sortino Ratio Rank: 28
SCHH Omega Ratio Rank: 28
SCHH Calmar Ratio Rank: 35
SCHH Martin Ratio Rank: 35

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. SCHH - 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 US REIT ETF (SCHH). 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.

	VSS	SCHH	Difference
Sharpe ratio: Return per unit of total volatility	1.50	0.97	+0.53
Sortino ratio: Return per unit of downside risk	2.06	1.39	+0.68
Omega ratio: Gain probability vs. loss probability	1.28	1.17	+0.10
Calmar ratio: Return relative to maximum drawdown	1.97	1.57	+0.41
Martin ratio: Return relative to average drawdown	7.54	4.92	+2.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSS vs. SCHH - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.50, which is higher than the SCHH Sharpe Ratio of 0.97. The chart below compares the historical Sharpe Ratios of VSS and SCHH, 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

	VSS	SCHH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.50	0.97	+0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.32	0.15	+0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.20	+0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.34	+0.19

Drawdowns

VSS vs. SCHH - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, roughly equal to the maximum SCHH drawdown of -44.22%. Use the drawdown chart below to compare losses from any high point for VSS and SCHH.

Drawdown Indicators

	VSS	SCHH	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-44.22%	+0.71%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-8.28%	-3.34%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-17.76%	+2.03%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	-33.28%	-0.65%
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	-44.22%	+0.71%
Current Drawdown Current decline from peak	-5.08%	-2.01%	-3.07%
Average Drawdown Average peak-to-trough decline	-9.64%	-9.45%	-0.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	2.63%	+0.41%

Volatility

VSS vs. SCHH - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a higher volatility of 5.87% compared to Schwab US REIT ETF (SCHH) at 4.21%. This indicates that VSS's price experiences larger fluctuations and is considered to be riskier than SCHH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSS	SCHH	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.87%	4.21%	+1.66%
Volatility (6M) Calculated over the trailing 6-month period	13.18%	9.75%	+3.43%
Volatility (1Y) Calculated over the trailing 1-year period	15.28%	13.39%	+1.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.53%	18.72%	-2.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.30%	20.98%	-3.68%

VSS vs. SCHH - Expense Ratio Comparison

Both VSS and SCHH have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VSS vs. SCHH - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.15%, more than SCHH's 2.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHH Schwab US REIT ETF	2.79%	3.04%	3.22%	3.24%	2.55%	1.50%	2.86%	2.86%	3.64%	2.22%	2.81%	2.48%
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 SCHH in my portfolio?

VSS and SCHH have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSS or SCHH?

VSS has higher volatility (5.87%) compared to SCHH (4.21%). In terms of maximum drawdown, VSS dropped -43.51% vs SCHH's -44.22%.

Which ETF is better, VSS or SCHH?

On 10-year performance, VSS leads with 7.98% vs 4.14% for SCHH. Both ETFs have the same 0.07% expense ratio. On volatility, SCHH has been the lower-risk option at 4.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSS or SCHH?

Over the 10-year period, VSS has performed better with a 7.98% return vs 4.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSS or SCHH?

VSS and SCHH have the same expense ratio: 0.07% per year.

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

VSS has the higher dividend yield at 3.15%, compared with 2.79% for SCHH.

What is the main difference between VSS and SCHH?

VSS is categorized as Foreign Small & Mid Cap Equities, while SCHH is REIT. VSS tracks FTSE Global Small Cap ex US Index, while SCHH tracks Dow Jones Equity All REIT Capped Index. They also come from different issuers: Vanguard and Charles Schwab.

Which has better risk-adjusted returns?

VSS currently has the higher Sharpe Ratio (1.50 vs 0.97), 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.