Portfolio Anchors: SCHB Offers Broader Growth Exposure While VTV Delivers Value and a Higher Yield
Key Points
SCHB captures the full U.S. equity market with a heavier tilt toward technology than VTV’s value focus.
VTV offers a higher dividend yield and lower volatility, while SCHB has delivered a higher return over the past year.
SCHB is more diversified with over 2,400 holdings, but VTV is much larger by assets under management
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The Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) offers broader market exposure and a tech emphasis, while the Vanguard Value ETF (NYSEMKT:VTV) focuses on large-cap value stocks, with a higher yield and lower volatility—two distinct approaches for different investor priorities.
Both the Schwab U.S. Broad Market ETF (SCHB) and the Vanguard Value ETF (VTV) are popular low-cost index funds, but their goals and construction differ. SCHB tracks the entire U.S. stock market, capturing growth and value stocks of all sizes, while VTV zeroes in on large-cap value companies. This comparison highlights the trade-offs in diversification, return profile, and sector exposure.
Snapshot (cost & size)
| Metric | VTV | SCHB |
|---|---|---|
| Issuer | Vanguard | Schwab |
| Expense ratio | 0.04% | 0.03% |
| 1-yr return (as of 2026-01-23) | 15.3% | 16.9% |
| Dividend yield | 2.0% | 1.1% |
| AUM | $217.8 billion | $38.9 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
SCHB is slightly more affordable on fees, but VTV offers a higher payout for income-focused investors.
Performance & risk comparison
| Metric | VTV | SCHB |
|---|---|---|
| Max drawdown (5 y) | (17.04%) | (25.36%) |
| Growth of $1,000 over 5 years | $1,622 | $1,697 |
What's inside
SCHB holds 2,401 stocks spanning the entire U.S. market, with a pronounced tilt toward technology (33%), followed by financial services (14%) and consumer cyclicals (11%). Its top positions — Nvidia(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT)— showcase its growth bias. The fund has over 17% of its net assets in those three tech giants alone.
VTV, by contrast, concentrates on large-cap value, emphasizing financial services (23%), healthcare (15%), and industrials (17%). Its leading holdings — JPMorgan Chase(NYSE:JPM), Berkshire Hathaway(NYSE:BRK.B), and Exxon Mobil(NYSE:XOM)— reflect classic value themes. It also has much less exposure to its top holding, as those three only represent about 8% of its net assets. With 331 holdings and over $217.8 billion in assets under management, VTV is one of the largest, most liquid U.S. equity ETFs.
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What this means for investors
SCHB and VTV offer investors two different paths. SCHB offers simple, broad market exposure (over 2,500 stocks) for a rock-bottom cost. It can be an anchor holding for any portfolio simply seeking market exposure. Even with its broad exposure, it tilts heavily towards tech stocks because they now comprise a meaningful share of the market. It also has a slightly higher fee (its expense ratio is still ultra-low compared to other ETFs) and a lower dividend yield (due to its tech-sector concentration).
VTV takes a more thematic approach. It focuses specifically on large-cap value stocks. These companies tend to be slower-growing and higher-yielding. These factors help reduce this fund’s risk profile.
In the end, the choice is between growth and value. If you want higher capital appreciation potential, SCHB is the way to go, while lower risk returns are more likely in VTV.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Matt DiLallo has positions in Apple, Berkshire Hathaway, and JPMorgan Chase and has the following options: short May 2026 $280 calls on Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, and Vanguard Index Funds - Vanguard Value ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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