SCHB vs VTV: A Portfolio Manager’s Confession

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Right, let’s talk ETFs. Because honestly, sometimes I look at the market and just… need a solid plan. A bit of control. Is that so much to ask? Today’s contenders: the Schwab U.S. Broad Market ETF (SCHB) and the Vanguard Value ETF (VTV). Both perfectly respectable. Both vying for a piece of your portfolio. And both, let’s be real, a little bit boring on the surface. But we’re going to dig in, aren’t we? Because boring can be good. It can be the quiet backbone of a sane investment strategy. Or it can be a slow, agonizing march to mediocrity. We’ll see.

SCHB, bless its heart, tries to be everything to everyone. It’s the “just hold the whole market” option. A broad sweep, capturing growth and value, large and small. It’s the sort of thing you recommend to your less adventurous clients. The ones who just want to be left alone. VTV, on the other hand, is… pickier. It’s a value devotee. Large-cap, established companies. The kind that reliably… exist. It’s a bit like choosing between a sprawling buffet and a carefully curated tasting menu. Both have their merits. But they appeal to very different appetites.

The Nitty Gritty (Because Numbers Don’t Lie… Much)

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

Okay, so SCHB edges out VTV on that one-year return. Not massively, but enough to make you raise an eyebrow. And it’s slightly cheaper to hold. But VTV’s dividend yield is noticeably higher. Which, let’s be honest, is nice. It’s like getting a little thank you note for not panicking and selling everything. AUM – Assets Under Management – that’s just a measure of popularity, really. VTV’s the big kid on the block. More money means more liquidity. Which is good. Unless you’re trying to be contrarian. Then, suddenly, everyone else is wrong and you’re a genius.

Risk and Reward: A Delicate Dance

Metric VTV SCHB
Max drawdown (5 y) (17.04%) (25.36%)
Growth of $1,000 over 5 years $1,622 $1,697

Drawdown. That’s the scary one. How much you lose when things go south. VTV has a smaller one. Which means it tends to fall less when the market throws a tantrum. Not that it won’t fall, mind you. Just… less dramatically. Over five years, SCHB has slightly outperformed VTV. But honestly, the difference is negligible. We’re talking about a few extra lattes. I always tell clients, if your investment decisions hinge on a few lattes, you have bigger problems.

What’s Inside the Black Box

SCHB, bless its enthusiastic heart, is heavily invested in tech. Nvidia, Apple, Microsoft… it’s basically a bet on the continued dominance of a handful of companies. Which, let’s face it, isn’t necessarily a bad bet. But it’s… concentrated. Over 17% of its assets in those three alone. It’s like putting all your eggs in a very shiny, very expensive basket. VTV, meanwhile, is all about the old guard. JPMorgan Chase, Berkshire Hathaway, Exxon Mobil… These are the companies your grandfather probably invested in. Solid. Reliable. And, let’s be honest, a little bit boring. It’s a more diversified approach, spreading the risk across a wider range of sectors. Though, admittedly, it’s still heavily weighted towards financials, healthcare, and industrials.

The Bottom Line (Because We All Want One)

So, which one do you choose? SCHB is the growth engine. It’s the one you pick if you believe the market will continue to climb. If you’re comfortable with a little more risk. VTV is the ballast. The one you pick if you’re looking for stability. If you’re worried about a market correction. If you’re nearing retirement and suddenly terrified of losing everything. Honestly, both are perfectly reasonable choices. It depends on your risk tolerance, your investment goals, and your general level of anxiety. And, let’s be real, sometimes it just comes down to gut feeling. Which, as a portfolio manager, I’m technically not supposed to admit. But hey, we’re all human, right? And sometimes, a little bit of chaos is exactly what we need.

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2026-01-25 23:24