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VTI vs. SCHF: What’s The Difference?

The Vanguard Total Stock Market Index Fund ETF Shares (VTI) and the Schwab International Equity ETF (SCHF) are both among the Top 100 ETFs. VTI is a Vanguard Large Blend fund and SCHF is a Schwab ETFs Foreign Large Blend fund. So, what’s the difference between VTI and SCHF? And which fund is better?

The expense ratio of VTI is 0.03 percentage points lower than SCHF’s (0.03% vs. 0.06%). VTI also has a higher exposure to the technology sector and a lower standard deviation. Overall, VTI has provided higher returns than SCHF over the past ten years.

In this article, we’ll compare VTI vs. SCHF. We’ll look at annual returns and industry exposure, as well as at their fund composition and risk metrics. Moreover, I’ll also discuss VTI’s and SCHF’s portfolio growth, holdings, and performance and examine how these affect their overall returns.

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Summary

VTISCHF
NameVanguard Total Stock Market Index Fund ETF SharesSchwab International Equity ETF
CategoryLarge BlendForeign Large Blend
IssuerVanguardSchwab ETFs
AUM1.26T26.99B
Avg. Return14.70%6.43%
Div. Yield1.26%2.16%
Expense Ratio0.03%0.06%

The Vanguard Total Stock Market Index Fund ETF Shares (VTI) is a Large Blend fund that is issued by Vanguard. It currently has 1.26T total assets under management and has yielded an average annual return of 14.70% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.03%.

The Schwab International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% with an expense ratio of 0.06%.

VTI’s dividend yield is 0.90% lower than that of SCHF (1.26% vs. 2.16%). Also, VTI yielded on average 8.27% more per year over the past decade (14.70% vs. 6.43%). The expense ratio of VTI is 0.03 percentage points lower than SCHF’s (0.03% vs. 0.06%).

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Fund Composition

Industry Exposure

VTI vs. SCHF - Industry Exposure

VTISCHF
Technology24.1%11.55%
Industrials9.39%14.86%
Energy2.77%4.23%
Communication Services10.4%5.65%
Utilities2.29%3.09%
Healthcare13.64%11.05%
Consumer Defensive5.77%9.41%
Real Estate3.59%3.17%
Financial Services13.77%17.85%
Consumer Cyclical11.83%10.87%
Basic Materials2.44%8.26%

The Vanguard Total Stock Market Index Fund ETF Shares (VTI) has the most exposure to the Technology sector at 24.1%. This is followed by Financial Services and Healthcare at 13.77% and 13.64% respectively. Basic Materials (2.44%), Energy (2.77%), and Real Estate (3.59%) only make up 8.80% of the fund’s total assets.

VTI’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.77%, 9.39%, 10.4%, 11.83%, and 13.64%.

The Schwab International Equity ETF (SCHF) has the most exposure to the Financial Services sector at 17.85%. This is followed by Industrials and Technology at 14.86% and 11.55% respectively. Real Estate (3.17%), Energy (4.23%), and Communication Services (5.65%) only make up 13.05% of the fund’s total assets.

SCHF’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Defensive, Consumer Cyclical, Healthcare, and Technology stocks at 8.26%, 9.41%, 10.87%, 11.05%, and 11.55%.

VTI is 12.55% more exposed to the Technology sector than SCHF (24.1% vs 11.55%). VTI’s exposure to Financial Services and Healthcare stocks is 4.08% lower and 2.59% higher respectively (13.77% vs. 17.85% and 13.64% vs. 11.05%). In total, Basic Materials, Energy, and Real Estate also make up 6.86% less of the fund’s holdings compared to SCHF (8.80% vs. 15.66%).

Holdings

VTI - Holdings

VTI HoldingsWeight
Apple Inc4.9%
Microsoft Corp4.6%
Amazon.com Inc3.33%
Facebook Inc Class A1.88%
Alphabet Inc Class A1.66%
Alphabet Inc Class C1.56%
Tesla Inc1.18%
Berkshire Hathaway Inc Class B1.09%
NVIDIA Corp1.07%
JPMorgan Chase & Co1.06%

VTI’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 4.9%, 4.6%, 3.33%, 1.88%, and 1.66%.

Alphabet Inc Class C (1.56%), Tesla Inc (1.18%), and Berkshire Hathaway Inc Class B (1.09%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VTI’s holdings at 1.07% and 1.06%.

SCHF - Holdings

SCHF HoldingsWeight
Nestle SA1.66%
Samsung Electronics Co Ltd1.6%
ASML Holding NV1.29%
Roche Holding AG1.24%
Toyota Motor Corp1.02%
LVMH Moet Hennessy Louis Vuitton SE0.93%
Novartis AG0.92%
Shopify Inc A0.78%
AstraZeneca PLC0.75%
SAP SE0.74%

SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.

LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.

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Performance

Annual Returns

VTI vs. SCHF - Annual Returns

YearVTISCHF
202020.95%9.86%
201930.8%22.15%
2018-5.13%-14.39%
201721.16%25.83%
201612.68%2.88%
20150.4%-2.44%
201412.56%-4.44%
201333.51%20.03%
201216.41%17.12%
20111.06%-12.32%
201017.26%8.6%

VTI had its best year in 2013 with an annual return of 33.51%. VTI’s worst year over the past decade yielded -5.13% and occurred in 2018. In most years the Vanguard Total Stock Market Index Fund ETF Shares provided moderate returns such as in 2016, 2012, and 2010 where annual returns amounted to 12.68%, 16.41%, and 17.26% respectively.

The year 2017 was the strongest year for SCHF, returning 25.83% on an annual basis. The poorest year for SCHF in the last ten years was 2018, with a yield of -14.39%. Most years the Schwab International Equity ETF has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 2.88%, 8.6%, and 9.86% respectively.

Portfolio Growth

VTI vs. SCHF - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
VTI$10,000$36,37014.70%
SCHF$10,000$17,0896.43%

A $10,000 investment in VTI would have resulted in a final balance of $36,370. This is a profit of $26,370 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.70%.

With a $10,000 investment in SCHF, the end total would have been $17,089. This equates to a $7,089 profit over 10 years and a compound annual growth rate (CAGR) of 6.43%.

VTI’s CAGR is 8.27 percentage points higher than that of SCHF and as a result, would have yielded $19,281 more on a $10,000 investment. Thus, VTI outperformed SCHF by 8.27% annually.


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