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SCHD vs. VUG

Schwab US Dividend Equity ETF

SCHD
$--
vs

Vanguard Growth ETF

VUG
$--

Correlation

0.76
SCHDSchwab US Dividend Equity ETF
VUGVanguard Growth ETF

What is SCHD?

The ETF seeks investment results that track, as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index. Provides exposure to high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends and have strong relative fundamental strength based on select financial ratios.

Snapshot
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SCHD Schwab US Dividend Equity ETF
VUG Vanguard Growth ETF
Inception date
Oct 20 2011
Jan 26 2004
Expense ratio
0.06%
0.04%
SCHD has a higher expense ratio than VUG by 0.01%. This can indicate that it’s more expensive to invest in SCHD than VUG.
Type
US Equities
US Equities
SCHD targets investing in US Equities, while VUG targets investing in US Equities.
Fund owner
Schwab
Vanguard
SCHD is managed by Schwab, while VUG is managed by Vanguard.
Volume (1m avg. daily)
$191,902,599
$205,784,508
Both SCHD and VUG are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$47,737,029,197
$89,278,316,853
SCHD has more assets under management than VUG by $41,541,287,656. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
Dow Jones U.S. Dividend 100 Index
CRSP U.S. Large Cap Growth Index
SCHD is based off of the Dow Jones U.S. Dividend 100 Index, while VUG is based off of the CRSP U.S. Large Cap Growth Index
Inverse/Leveraged
No
No
SCHD and VUG use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
SCHD and VUG both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
Yes
No
SCHD may offer dividends, while VUG does not. The frequency and yield of the dividend for SCHD may vary.
Prospectus
Neither SCHD nor VUG require a K1.
SCHD and VUG’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toSCHD

#OPUS-12

Opus-12

Category

Opus, Investing for the Long-Term

Risk Rating

Moderate

Automated Strategies
Related toVUG

#BTD

Buy the Dips: Nasdaq 100

Category

Featured, Technology Focus

Risk Rating

Aggressive

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

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We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.