Dividend comparison
VTWO vs SCHA: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Russell 2000 ETF and Schwab U.S. Small-Cap ETF, side by side. Updated October 21, 2026.
VTWO vs SCHA: key differences
The short answer, from the latest data on this page.
- Fees. SCHA is cheaper at 0.03% a year versus 0.06% for VTWO. On $10,000 that is $3 a year less in fees.
- Income. Their trailing yields are almost the same: 1.22% for VTWO and 1.13% for SCHA. VTWO pays annual, SCHA pays quarterly.
- Performance. Over the last 5 years, SCHA returned 33.5% versus 29.6% for VTWO, with dividends reinvested. $10,000 would have grown to $13,354 in SCHA and $12,963 in VTWO.
- Risk. Their worst declines over the last 5 years were similar: -31.9% for VTWO and -30.8% for SCHA from peak to trough.
- Diversification. VTWO holds 1,969 positions and SCHA holds 1,750. The ten largest positions make up 3.3% of VTWO and 10.1% of SCHA.
- Overlap. At least 6% of the two portfolios overlap by weight, across 28 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. VTWO grew its yearly payout 5.1% a year over the last 4 years, versus 4.0% for SCHA.
Bottom line: VTWO fits better if you care most about faster dividend growth. SCHA fits better if you care most about lower fees and stronger 5-year returns.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VTWO Vanguard Russell 2000 ETF | SCHA Schwab U.S. Small-Cap ETF |
|---|---|---|
| Dividend yield (TTM) | 1.22% | 1.13% |
| Dividend / share (TTM) | $1.36 | $0.37 |
| Payout frequency | Annual | Quarterly |
| Last dividend | $0.3911 on Sep 25, 2026 | $0.1005 on Sep 28, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 23, 2026 |
| Dividend growth (CAGR) | 5.1% over 4 yrs | 4.0% over 4 yrs |
| Price | $111.40 | $32.57 |
| Dividend growth streak | 1 year | 1 year |
| Beta | 1.14 | 1.12 |
| Max drawdown (5Y) | -31.9% | -30.8% |
| Market cap | $17.30B | $21.30B |
| Exchange | NASDAQ | AMEX |
| Expense ratio | 0.06% | 0.03% |
| Assets under management | $17.30B | $21.34B |
| Number of holdings | 1969 | 1750 |
| Top 10 concentration | 3.3% | 10.1% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VTWO
$10.15/mo
$122 /yr at 1.22% yield
SCHA
$9.45/mo
$113 /yr at 1.13% yield
Dividend history
Total dividends paid per share in each calendar year. VTWO pays annual; SCHA pays quarterly.
| Year | VTWO | SCHA |
|---|---|---|
| 2025 | $1.2429 | $0.3575 |
| 2024 | $1.0821 | $0.3905 |
| 2023 | $1.1739 | $0.3364 |
| 2022 | $1.0413 | $0.2774 |
| 2021 | $1.0173 | $0.3055 |
Strategy: Small and mid cap
Funds that hold companies below the large-cap tier, where there is more room for growth and less coverage by analysts. Small-cap indexes differ meaningfully: some screen for profitability, some include every listed company, and value-tilted funds lean toward the cheapest names. Those rules drive more of the difference between funds than fees do.
Smaller companies are more sensitive to recessions and borrowing costs, so drawdowns run deeper than in large-cap funds.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $12,963 in VTWO and $13,354 in SCHA.
| Period | VTWO | SCHA |
|---|---|---|
| 1 month | -2.94% | -2.31% |
| 3 months | -5.41% | -3.55% |
| Year to date | 12.89% | 15.17% |
| 1 year | 12.46% | 16.49% |
| 3 years | 71.49% | 72.51% |
| 5 years | 29.63% | 33.54% |
- VTWO
- SCHA
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VTWO
- SCHA
VTWO vs SCHA holdings overlap
At least 6% overlap by weight, with 28 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | VTWO weight | SCHA weight |
|---|---|---|
| BTSGBrightSpring Health Services Inc | 0.31% | 0.26% |
| GKOSGlaukos Corp | 0.31% | 0.24% |
| UMBFUMB Financial Corp | 0.32% | 0.23% |
| TWSTTwist Bioscience Corp | 0.42% | 0.23% |
| SMSM Energy Co | 0.27% | 0.23% |
| PCVXVaxcyte Inc | 0.25% | 0.22% |
| CYTKCytokinetics Inc | 0.29% | 0.22% |
| PTGXProtagonist Therapeutics Inc | 0.28% | 0.22% |
| RHPRyman Hospitality Properties Inc | 0.27% | 0.21% |
| FCFSFirstCash Holdings Inc | 0.28% | 0.21% |
Top 10 holdings
Largest positions by portfolio weight.
VTWO1969 holdings total
Quick verdict
VTWO fits better if you care most about faster dividend growth. SCHA fits better if you care most about lower fees and stronger 5-year returns. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is VTWO or SCHA better for dividend income?
It depends on your goals. VTWO currently yields 1.22% Trailing Twelve Months (TTM) while SCHA yields 1.13%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VTWO and SCHA?
Vanguard Russell 2000 ETF (VTWO) is an ETF listed on NASDAQ. Schwab U.S. Small-Cap ETF (SCHA) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VTWO or SCHA?
SCHA has the lower expense ratio. VTWO charges 0.06% a year and SCHA charges 0.03%, a difference of $3 a year on a $10,000 investment.
Which has performed better, VTWO or SCHA?
Over the last 5 years, SCHA has the higher total return with dividends reinvested: VTWO returned 29.6% and SCHA returned 33.5%. Past performance does not predict future returns.
Which is riskier, VTWO or SCHA?
Measured by the worst peak-to-trough decline over the last five years, VTWO has been riskier: VTWO fell as much as 31.9% and SCHA as much as 30.8%. Their betas are 1.14 and 1.12.
How much do VTWO and SCHA overlap?
At least 6% of the two portfolios overlap by weight, across 28 shared holdings. The largest shared positions are BTSG, GKOS, UMBF. Holding both still adds meaningful diversification.
How often do VTWO and SCHA pay dividends?
VTWO pays annual and SCHA pays quarterly.
How much income does $10,000 in VTWO vs SCHA generate?
At current TTM yields, $10,000 in VTWO would generate roughly $10.15 per month ($122 annually). The same amount in SCHA would produce about $9.45 per month ($113 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VTWO and SCHA?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VTWO vs SCHA with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VTWO and SCHA fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.