Schwab Small-Cap ETF Outperforms Vanguard on One-Year Returns by Letting Sandisk Shine
Both funds charge identical 0.03% expense ratios, but Vanguard holds significantly more assets and offers a higher dividend yield of 1.2%.
The Schwab U.S. Small-Cap ETF (SCHA) and the Vanguard Morningstar Small-Cap ETF (VB) both provide low-cost access to small-cap stocks. The funds differ mainly in their index selection and sector concentrations. Investors seeking small-cap exposure often turn to these established funds for their long-term growth potential. Despite both offering low-cost entries, they follow different benchmarks, leading to unique risk profiles, holding counts, and sector weights.
This analysis examines how these portfolio construction differences can affect overall market exposure and dividend income potential. Beta gauges price volatility against the S&P 500 and is calculated from monthly returns during the fund's history, up to five years. The 1-year return represents the total return over the past 12 months, while the dividend yield reflects the trailing-12-month distribution yield.
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