Schwab Broad Market ETF vs. Vanguard Value ETF: Which Boring ETF Is Better for Investors?
Both charge 0.03% fees, but Vanguard's 2.3% yield and lower volatility appeal to income investors, while Schwab's 2,396-stock portfolio offers broader diversification.
Overview
Comparing the Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) against the Vanguard Morningstar Value ETF (NYSEMKT:VTV) reveals a choice between total market diversification and a targeted, large-cap value strategy.
While both funds offer incredibly low-cost access to U.S. equities, they serve different roles. SCHB tracks the entire domestic stock market, including growth and value across all sizes. VTV focuses exclusively on large-cap stocks that appear undervalued, potentially offering a more defensive profile with higher income.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Details
Source
Originally published at www.fool.com.