VB vs SCHA: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between VB and SCHA

VB (Vanguard Small-Cap ETF) is a us small-cap fund managed by Vanguard. VB tracks the CRSP US Small Cap Index, providing exposure to a broad range of small U.S. companies with higher growth potential but also more volatility. Small-cap stocks have historically outperformed larger companies over very long periods, though with bumpier rides along the way. This fund is a low-cost way to tap into the entrepreneurial engine of the American economy.

SCHA (Schwab U.S. Small-Cap ETF) is a u.s. small-cap blend fund managed by Schwab. SCHA provides exposure to roughly 1,750 small-cap U.S. companies that larger index funds typically miss. Small-cap stocks have historically delivered higher long-term returns than large-caps, though with more volatility along the way. Beginners who want to capture the growth potential of smaller American businesses can use SCHA to broaden their portfolio beyond the usual large-cap names.

The most notable differences are in fees (0.05% vs 0.04%), number of holdings (1,400 vs 1,750), and 5-year returns (9.00% vs 10.50%).

Holdings Overlap Analysis

VB and SCHA share only 18% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $86 on a $10,000 investment. The cost difference is negligible — choose based on other factors.

Which One Should a Beginner Choose?

Choose VB if: You want aggressive long-term investors willing to tolerate higher volatility, portfolio completion strategies needing small-cap representation, investors building a total market portfolio with separate size-based etfs. It's managed by Vanguard with an expense ratio of 0.05%.

Choose SCHA if: You want long-term investors who want exposure to smaller, faster-growing u.s. companies, portfolio diversifiers looking to complement large-cap core holdings, schwab customers seeking low-cost small-cap exposure with no commissions. It's managed by Schwab with an expense ratio of 0.04%.

Can You Own Both VB and SCHA?

Absolutely! With only 18% overlap, VB and SCHA complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

Frequently Asked Questions