VTTHX vs. SCHD

Last updated Jun 5, 2026

VTTHX (Vanguard Target Retirement 2035 Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both funds - VTTHX is a Target Retirement Date fund managed by Vanguard, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Over the past 10 years, VTTHX returned 9.72%/yr vs 12.79%/yr for SCHD. Their correlation of 0.81 suggests significant overlap in exposure. VTTHX charges 0.08%/yr vs 0.06%/yr for SCHD.

Performance

VTTHX vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2035 Fund (VTTHX) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTTHX achieves a 8.47% return, which is significantly lower than SCHD's 19.82% return. Over the past 10 years, VTTHX has underperformed SCHD with an annualized return of 9.72%, while SCHD has yielded a comparatively higher 12.79% annualized return.

VTTHX

• 1D: -0.60%
• 1M: 2.70%
• YTD: 8.47%
• 6M: 9.05%
• 1Y: 20.81%
• 3Y*: 15.64%
• 5Y*: 7.69%
• 10Y*: 9.72%

SCHD

• 1D: 0.68%
• 1M: 2.84%
• YTD: 19.82%
• 6M: 19.65%
• 1Y: 28.76%
• 3Y*: 15.59%
• 5Y*: 8.50%
• 10Y*: 12.79%

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

VTTHX vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTTHX Vanguard Target Retirement 2035 Fund	8.47%	17.55%	11.56%	17.37%	-16.64%	12.96%	14.80%	22.44%	-6.57%	16.81%
SCHD Schwab U.S. Dividend Equity ETF	19.82%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between VTTHX and SCHD 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	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011	0.81

Over the past year, the correlation between VTTHX and SCHD has dropped to 0.41 - well below their long-term average of 0.81, suggesting their price drivers have been diverging.

VTTHX vs. SCHD - Sectors Allocation Comparison

Sectors	VTTHX	SCHD
Technology	27.4%	16.4%
Financial Services	16.1%	9.3%
Industrials	12.3%	7.5%
Consumer Cyclical	9.4%	6.3%
Healthcare	8.3%	18.8%
Communication Services	8.0%	6.3%
Consumer Defensive	4.8%	19.2%
Energy	4.3%	16.2%
Basic Materials	4.2%	1.2%
Utilities	2.7%	0.0%
Real Estate	2.5%	-

Return for Risk

VTTHX vs. SCHD — Risk / Return Rank

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

VTTHX

VTTHX Risk / Return Rank: 64
VTTHX Sharpe Ratio Rank: 65
VTTHX Sortino Ratio Rank: 64
VTTHX Omega Ratio Rank: 63
VTTHX Calmar Ratio Rank: 59
VTTHX Martin Ratio Rank: 67

SCHD

SCHD Risk / Return Rank: 85
SCHD Sharpe Ratio Rank: 82
SCHD Sortino Ratio Rank: 89
SCHD Omega Ratio Rank: 80
SCHD Calmar Ratio Rank: 92
SCHD Martin Ratio Rank: 80

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.

VTTHX vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2035 Fund (VTTHX) and Schwab U.S. 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.

	VTTHX	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	2.38	2.64	-0.26
Sortino ratio: Return per unit of downside risk	3.37	4.08	-0.70
Omega ratio: Gain probability vs. loss probability	1.44	1.47	-0.03
Calmar ratio: Return relative to maximum drawdown	2.96	6.26	-3.30
Martin ratio: Return relative to average drawdown	13.04	15.38	-2.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTTHX vs. SCHD - Sharpe Ratio Comparison

The current VTTHX Sharpe Ratio is 2.38, which is comparable to the SCHD Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of VTTHX and SCHD, 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

	VTTHX	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.38	2.64	-0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.59	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.78	0.77	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.86	-0.33

Drawdowns

VTTHX vs. SCHD - Drawdown Comparison

The maximum VTTHX drawdown since its inception was -51.76%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VTTHX and SCHD.

Drawdown Indicators

	VTTHX	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-51.76%	-33.37%	-18.39%
Max Drawdown (1Y) Largest decline over 1 year	-7.17%	-4.61%	-2.56%
Max Drawdown (3Y) Largest decline over 3 years	-10.87%	-16.13%	+5.26%
Max Drawdown (5Y) Largest decline over 5 years	-23.53%	-16.85%	-6.68%
Max Drawdown (10Y) Largest decline over 10 years	-27.15%	-33.37%	+6.22%
Current Drawdown Current decline from peak	-0.60%	-0.73%	+0.13%
Average Drawdown Average peak-to-trough decline	-6.09%	-3.32%	-2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.63%	1.87%	-0.24%

Volatility

VTTHX vs. SCHD - Volatility Comparison

Vanguard Target Retirement 2035 Fund (VTTHX) has a higher volatility of 2.86% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 2.69%. This indicates that VTTHX'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.

Volatility by Period

	VTTHX	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.86%	2.69%	+0.17%
Volatility (6M) Calculated over the trailing 6-month period	7.19%	7.65%	-0.46%
Volatility (1Y) Calculated over the trailing 1-year period	8.91%	10.95%	-2.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.38%	14.38%	-3.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.46%	16.71%	-4.25%

VTTHX vs. SCHD - Expense Ratio Comparison

VTTHX has a 0.08% 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%.

Dividends

VTTHX vs. SCHD - Dividend Comparison

VTTHX's dividend yield for the trailing twelve months is around 2.72%, less than SCHD's 3.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.24%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
VTTHX Vanguard Target Retirement 2035 Fund	2.72%	2.96%	3.12%	2.47%	2.71%	19.52%	2.50%	2.33%	2.69%	0.16%	2.77%	4.67%

Frequently Asked Questions

Can I hold both VTTHX and SCHD in my portfolio?

VTTHX and SCHD 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, VTTHX or SCHD?

VTTHX has higher volatility (2.86%) compared to SCHD (2.69%). In terms of maximum drawdown, VTTHX dropped -51.76% vs SCHD's -33.37%.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.64 vs 2.38), 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.