PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
VTWO vs. SCHA
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTWO vs. SCHA

Last updated Jun 26, 2026

VTWO (Vanguard Russell 2000 ETF) and SCHA (Schwab U.S. Small-Cap ETF) are both Small Cap Blend Equities funds - VTWO tracks the Russell 2000 Index while SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Index. Both are passively managed. Over the past 10 years, VTWO returned 12.24%/yr vs 12.37%/yr for SCHA. With a 0.99 correlation, they move nearly in lockstep. VTWO charges 0.06%/yr vs 0.04%/yr for SCHA.

Performance

VTWO vs. SCHA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 ETF (VTWO) and Schwab U.S. Small-Cap ETF (SCHA). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, VTWO achieves a 21.95% return, which is significantly lower than SCHA's 25.74% return. Both investments have delivered pretty close results over the past 10 years, with VTWO having a 12.24% annualized return and SCHA not far ahead at 12.37%.

VTWO

1D
0.72%
1M
3.13%
YTD
21.95%
6M
18.83%
1Y
42.69%
3Y*
19.86%
5Y*
6.69%
10Y*
12.24%

SCHA

1D
2.21%
1M
5.28%
YTD
25.74%
6M
22.76%
1Y
45.10%
3Y*
20.73%
5Y*
7.75%
10Y*
12.37%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTWO vs. SCHA - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTWO
Vanguard Russell 2000 ETF		21.95%12.90%11.55%17.08%-20.49%14.79%20.22%25.81%-11.15%14.69%
SCHA
Schwab U.S. Small-Cap ETF		25.74%11.60%11.16%18.46%-19.81%16.45%19.34%26.50%-11.79%14.94%

Correlation

The correlation between VTWO and SCHA is 0.98 - 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

0.98

Correlation (3Y)
Calculated over the trailing 3-year period

0.99

Correlation (5Y)
Calculated over the trailing 5-year period

0.99

Correlation (10Y)
Calculated over the trailing 10-year period

0.99

Correlation (All Time)
Calculated using the full available price history since Sep 22, 2010

0.99

The correlation between VTWO and SCHA has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

VTWO vs. SCHA - Sectors Allocation Comparison

Sectors
VTWO
SCHA

Technology

19.1%
24.3%

Industrials

17.9%
15.4%

Healthcare

16.3%
13.8%

Financial Services

15.5%
15.4%

Consumer Cyclical

7.9%
9.2%

Real Estate

5.9%
5.8%

Energy

5.3%
4.8%

Basic Materials

4.7%
4.1%

Utilities

2.8%
2.1%

Communication Services

2.5%
2.3%

Consumer Defensive

2.2%
2.5%

Technology

VTWO
19.1%
SCHA
24.3%

Industrials

VTWO
17.9%
SCHA
15.4%

Healthcare

VTWO
16.3%
SCHA
13.8%

Financial Services

VTWO
15.5%
SCHA
15.4%

Consumer Cyclical

VTWO
7.9%
SCHA
9.2%

Real Estate

VTWO
5.9%
SCHA
5.8%

Energy

VTWO
5.3%
SCHA
4.8%

Basic Materials

VTWO
4.7%
SCHA
4.1%

Utilities

VTWO
2.8%
SCHA
2.1%

Communication Services

VTWO
2.5%
SCHA
2.3%

Consumer Defensive

VTWO
2.2%
SCHA
2.5%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Russell 2000 ETF

Schwab U.S. Small-Cap ETF

Often compared with VTWO:
VTWO vs. IWMVTWO vs. VBVTWO vs. VOOVTWO vs. VTWVVTWO vs. VTWGVTWO vs. FSSNXVTWO vs. VIOO
Often compared with SCHA:
SCHA vs. VBSCHA vs. AVUVSCHA vs. SWSSXSCHA vs. IJRSCHA vs. SCHDSCHA vs. SCHBSCHA vs. SCHM

Return for Risk

VTWO vs. SCHA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTWO
VTWO Risk / Return Rank: 7878
Overall Rank
VTWO Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 7777
Sortino Ratio Rank
VTWO Omega Ratio Rank: 7070
Omega Ratio Rank
VTWO Calmar Ratio Rank: 8383
Calmar Ratio Rank
VTWO Martin Ratio Rank: 8181
Martin Ratio Rank
SCHA
SCHA Risk / Return Rank: 8686
Overall Rank
SCHA Sharpe Ratio Rank: 8686
Sharpe Ratio Rank
SCHA Sortino Ratio Rank: 8585
Sortino Ratio Rank
SCHA Omega Ratio Rank: 7979
Omega Ratio Rank
SCHA Calmar Ratio Rank: 9090
Calmar Ratio Rank
SCHA Martin Ratio Rank: 9090
Martin Ratio Rank
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.

VTWO vs. SCHA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) and Schwab U.S. Small-Cap ETF (SCHA). 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.

VTWOSCHADifference
Sharpe ratioReturn per unit of total volatility
2.19
2.41

-0.22

Sortino ratioReturn per unit of downside risk
2.98
3.32

-0.34

Omega ratioGain probability vs. loss probability

1.36

1.40

-0.04

Calmar ratioReturn relative to maximum drawdown

3.90

4.77

-0.86

Martin ratioReturn relative to average drawdown

13.83

17.45

-3.61

VTWO vs. SCHA - Sharpe Ratio Comparison

The current VTWO Sharpe Ratio is 2.19, which is comparable to the SCHA Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of VTWO and SCHA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

VTWO vs. SCHA - Drawdown Comparison

The maximum VTWO drawdown since its inception was -41.19%, roughly equal to the maximum SCHA drawdown of -42.41%. Use the drawdown chart below to compare losses from any high point for VTWO and SCHA.

Loading charts...

Drawdown Indicators

VTWOSCHADifference

Max Drawdown

Largest peak-to-trough decline

-41.19%

-42.41%

+1.22%

Max Drawdown (1Y)

Largest decline over 1 year

-10.99%

-9.50%

-1.49%

Max Drawdown (3Y)

Largest decline over 3 years

-27.57%

-27.29%

-0.28%

Max Drawdown (5Y)

Largest decline over 5 years

-31.88%

-30.79%

-1.09%

Max Drawdown (10Y)

Largest decline over 10 years

-41.19%

-42.41%

+1.22%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-8.36%

-7.56%

-0.80%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.09%

2.59%

+0.50%

Volatility

VTWO vs. SCHA - Volatility Comparison

The current volatility for Vanguard Russell 2000 ETF (VTWO) is 6.32%, while Schwab U.S. Small-Cap ETF (SCHA) has a volatility of 6.79%. This indicates that VTWO experiences smaller price fluctuations and is considered to be less risky than SCHA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

VTWOSCHADifference

Volatility (1M)

Calculated over the trailing 1-month period

6.32%

6.79%

-0.47%

Volatility (6M)

Calculated over the trailing 6-month period

14.25%

14.03%

+0.22%

Volatility (1Y)

Calculated over the trailing 1-year period

19.63%

18.82%

+0.81%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.56%

22.06%

+0.50%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.10%

22.75%

+0.35%

VTWO vs. SCHA - Expense Ratio Comparison

VTWO has a 0.06% expense ratio, which is higher than SCHA's 0.04% 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

VTWO vs. SCHA - Dividend Comparison

VTWO's dividend yield for the trailing twelve months is around 1.08%, more than SCHA's 1.00% yield.

PositionTTM20252024202320222021202020192018201720162015
SCHA
Schwab U.S. Small-Cap ETF		1.00%1.26%1.51%1.42%1.37%1.19%1.05%1.39%1.58%1.24%1.50%1.48%
VTWO
Vanguard Russell 2000 ETF		1.08%1.25%1.21%1.45%1.48%1.13%0.92%1.36%1.41%1.18%1.27%1.23%

Frequently Asked Questions

With a correlation of 0.98, VTWO and SCHA 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.

SCHA has higher volatility (6.79%) compared to VTWO (6.32%). In terms of maximum drawdown, VTWO dropped -41.19% vs SCHA's -42.41%.

On 10-year performance, SCHA leads with 12.37% vs 12.24% for VTWO. On fees, SCHA is cheaper at 0.04% per year. On volatility, VTWO has been the lower-risk option at 6.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SCHA has performed better with a 12.37% return vs 12.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

SCHA is cheaper with a 0.04% expense ratio, compared with 0.06% for VTWO.

VTWO has the higher dividend yield at 1.08%, compared with 1.00% for SCHA.

VTWO tracks Russell 2000 Index, while SCHA tracks Dow Jones U.S. Small-Cap Total Stock Market Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.06% for VTWO and 0.04% for SCHA.

SCHA currently has the higher Sharpe Ratio (2.41 vs 2.19), 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.

Portfolio Optimizer

Find the right allocation for VTWO and SCHA

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer