Vanguard VTV vs. Schwab SCHB: How Value Stocks Compare to a Total Stock Market ETF
Key Points
SCHB provides exposure to over 2,000 stocks with a heavy tilt toward technology, while VTV focuses on roughly 300 large-cap value companies.
Both funds share a rock-bottom 0.03% expense ratio, though VTV offers a higher trailing-12-month dividend yield.
VTV has historically shown lower volatility and a smaller maximum drawdown compared to the more growth-oriented SCHB.
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Deciding between the Vanguard Value ETF (NYSEMKT:VTV) and the Schwab U.S. Broad Market ETF (NYSEMKT:SCHB)involves a choice between broad-market exposure and a targeted value strategy.
SCHB offers a "catch-all" approach to the U.S. economy, capturing everything from massive tech giants to small-cap players. Conversely, VTV homes in on large companies that appear undervalued relative to their fundamentals.
For many investors, these ETFs serve as foundational core building blocks that prioritize low costs and high liquidity. Here’s how they stack up.
Snapshot (cost & size)
| Metric | VTV | SCHB |
|---|---|---|
| Issuer | Vanguard | Schwab |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of June 16, 2026) | 27.95% | 27.19% |
| Dividend yield | 1.88% | 1.01% |
| Beta (5Y monthly) | 0.72 | 1.04 |
| Assets under management (AUM) | $179 billion | $43 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Both funds are exceptionally cost-efficient, featuring identical 0.03% expense ratios. This rock-bottom pricing means investors pay just $3 annually for every $10,000 invested. However, income seekers may favor VTV, which provides a significantly higher trailing-12-month dividend yield.
Performance & risk comparison
| Metric | VTV | SCHB |
|---|---|---|
| Max drawdown (5 yr) | -17.03% | -25.40% |
| Growth of $1,000 over 5 years (total return) | $1,772 | $1,825 |
What's inside
SCHB offers broad diversification across 2,410 holdings, including large-, mid-, and small-cap stocks. Its sector allocation is heavily weighted toward technology at 37% of assets, followed by financial services. Its largest positions include Nvidia, Apple, and Microsoft.
VTV is more concentrated, holding 309 stocks selected for their value characteristics. Its top sector is financial services, accounting for just over 20% of assets, followed by technology. Its top holdings include Micron Technology, JPMorgan Chase, and Berkshire Hathaway.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
VTV and SCHB both offer risk protection, but in different packages. SCHB takes a diversification approach, providing broad exposure to the U.S. equity market.
With access to stocks of all sizes across all industries, it’s tough to find a fund more diversified than SCHB. This can help limit some of the impact of volatility, because if a few stocks within the fund falter, there are plenty of others to prop it up.
VTV is much narrower, with just a fraction of SCHB’s holdings. However, its focus specifically on value stocks makes it a stable, consistent investment, as value stocks tend to be from established companies with a healthy track record of success.
VTV’s lower beta and milder max drawdown also suggest that it’s experienced less severe price fluctuations in the last five years compared to SCHD. While the two funds share nearly identical one-year returns, SCHD has a slight edge in five-year growth.
Finally, dividend potential can be a factor in your decision. Value stocks often offer higher dividends, and VTV yields more than SCHD. For income-focused investors looking to build a passive dividend income stream, VTV may be the more appealing choice.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Katie Brockman has positions in Vanguard Value ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, JPMorgan Chase, Micron Technology, Microsoft, Nvidia, and Vanguard Value ETF. The Motley Fool has a disclosure policy.
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