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VTV vs. SCHF: What’s The Difference?

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

The expense ratio of VTV is 0.02 percentage points lower than SCHF’s (0.04% vs. 0.06%). VTV also has a higher exposure to the financial services sector and a lower standard deviation. Overall, VTV has provided higher returns than SCHF over the past ten years.

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

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Summary

VTVSCHF
NameVanguard Value Index Fund ETF SharesSchwab International Equity ETF
CategoryLarge ValueForeign Large Blend
IssuerVanguardSchwab ETFs
AUM125.77B26.99B
Avg. Return12.07%6.43%
Div. Yield2.15%2.16%
Expense Ratio0.04%0.06%

The Vanguard Value Index Fund ETF Shares (VTV) is a Large Value fund that is issued by Vanguard. It currently has 125.77B total assets under management and has yielded an average annual return of 12.07% over the past 10 years. The fund has a dividend yield of 2.15% with an expense ratio of 0.04%.

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%.

VTV’s dividend yield is 0.01% lower than that of SCHF (2.15% vs. 2.16%). Also, VTV yielded on average 5.65% more per year over the past decade (12.07% vs. 6.43%). The expense ratio of VTV is 0.02 percentage points lower than SCHF’s (0.04% vs. 0.06%).

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Fund Composition

Industry Exposure

VTV vs. SCHF - Industry Exposure

VTVSCHF
Technology7.86%11.55%
Industrials12.61%14.86%
Energy5.59%4.23%
Communication Services5.49%5.65%
Utilities5.37%3.09%
Healthcare19.84%11.05%
Consumer Defensive10.72%9.41%
Real Estate3.01%3.17%
Financial Services22.81%17.85%
Consumer Cyclical3.79%10.87%
Basic Materials2.91%8.26%

The Vanguard Value Index Fund ETF Shares (VTV) has the most exposure to the Financial Services sector at 22.81%. This is followed by Healthcare and Industrials at 19.84% and 12.61% respectively. Real Estate (3.01%), Consumer Cyclical (3.79%), and Utilities (5.37%) only make up 12.17% of the fund’s total assets.

VTV’s mid-section with moderate exposure is comprised of Communication Services, Energy, Technology, Consumer Defensive, and Industrials stocks at 5.49%, 5.59%, 7.86%, 10.72%, and 12.61%.

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%.

VTV is 4.96% more exposed to the Financial Services sector than SCHF (22.81% vs 17.85%). VTV’s exposure to Healthcare and Industrials stocks is 8.79% higher and 2.25% lower respectively (19.84% vs. 11.05% and 12.61% vs. 14.86%). In total, Real Estate, Consumer Cyclical, and Utilities also make up 4.96% less of the fund’s holdings compared to SCHF (12.17% vs. 17.13%).

Holdings

VTV - Holdings

VTV HoldingsWeight
Berkshire Hathaway Inc Class B2.98%
JPMorgan Chase & Co2.82%
Johnson & Johnson2.6%
UnitedHealth Group Inc2.27%
Procter & Gamble Co1.98%
Bank of America Corp1.91%
Exxon Mobil Corp1.6%
Comcast Corp Class A1.57%
Intel Corp1.36%
Verizon Communications Inc1.32%

VTV’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.98%, 2.82%, 2.6%, 2.27%, and 1.98%.

Bank of America Corp (1.91%), Exxon Mobil Corp (1.6%), and Comcast Corp Class A (1.57%) have a slightly smaller but still significant weight. Intel Corp and Verizon Communications Inc are also represented in the VTV’s holdings at 1.36% and 1.32%.

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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Risk Analysis

VTVSCHF
Mean Return1.050.58
R-squared92.6198.16
Std. Deviation13.7815.08
Alpha-1.920.53
Beta0.980.99
Sharpe Ratio0.870.42
Treynor Ratio11.945.39

The Vanguard Value Index Fund ETF Shares (VTV) has a Treynor Ratio of 11.94 with a Sharpe Ratio of 0.87 and a Beta of 0.98. Its Alpha is -1.92 while VTV’s R-squared is 92.61. Furthermore, the fund has a Standard Deviation of 13.78 and a Mean Return of 1.05.

The Schwab International Equity ETF (SCHF) has a R-squared of 98.16 with a Sharpe Ratio of 0.42 and a Beta of 0.99. Its Treynor Ratio is 5.39 while SCHF’s Alpha is 0.53. Furthermore, the fund has a Mean Return of 0.58 and a Standard Deviation of 15.08.

VTV’s Mean Return is 0.47 points higher than that of SCHF and its R-squared is 5.55 points lower. With a Standard Deviation of 13.78, VTV is slightly less volatile than SCHF. The Alpha and Beta of VTV are 2.45 points lower and 0.01 points lower than SCHF’s Alpha and Beta.

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Performance

Annual Returns

VTV vs. SCHF - Annual Returns

YearVTVSCHF
20202.23%9.86%
201925.85%22.15%
2018-5.39%-14.39%
201717.12%25.83%
201616.88%2.88%
2015-0.89%-2.44%
201413.19%-4.44%
201333.03%20.03%
201215.19%17.12%
20111.16%-12.32%
201014.45%8.6%

VTV had its best year in 2013 with an annual return of 33.03%. VTV’s worst year over the past decade yielded -5.39% and occurred in 2018. In most years the Vanguard Value Index Fund ETF Shares provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.19%, 14.45%, and 15.19% 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

VTV vs. SCHF - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
VTV$10,000$28,97612.07%
SCHF$10,000$17,0896.43%

A $10,000 investment in VTV would have resulted in a final balance of $28,976. This is a profit of $18,976 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.07%.

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%.

VTV’s CAGR is 5.65 percentage points higher than that of SCHF and as a result, would have yielded $11,887 more on a $10,000 investment. Thus, VTV outperformed SCHF by 5.65% annually.


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