ETF Versus

SCHA vs VTWO

Schwab U.S. Small-Cap ETF vs Vanguard Russell 2000 Index Fund ETF Shares

Last updated: 2026-04-08

Schwab U.S. Small-Cap ETF (SCHA) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.11%. Launched in 2009, the fund has a 17-year track record.

AUM: $20.1B ER: 0.04% Yield: 1.11% Since: Nov 3, 2009

Vanguard Russell 2000 Index Fund ETF Shares (VTWO) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a low expense ratio of 0.06%. The fund offers a moderate dividend yield of 1.19%. Launched in 2010, the fund has a 16-year track record.

AUM: $14.1B ER: 0.06% Yield: 1.19% Since: Sep 20, 2010

Quick Verdict

SCHA has a slightly lower expense ratio (0.04% vs 0.06%), saving about $40 per $10,000 over 10 years. Both funds have delivered similar 1-year returns (50.1% vs 49.4%), tracking closely.

Key Metrics

Metric SCHA VTWO
Expense Ratio 0.04% 0.06%
Dividend Yield 1.1% 1.2%
Fund Family N/A N/A
Category US Small Cap US Small Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

70 81 92 103 114 125 2021-04 2022-07 2023-10 2025-01 2026-04
SCHA +21.6%
VTWO +17.2%

Performance Comparison

Period SCHA VTWO Difference
1 Month +3.93% +2.81% +1.12%
3 Months +2.71% +0.95% +1.76%
6 Months +12.81% +9.63% +3.18%
YTD +6.42% +4.82% +1.60%
1 Year +50.10% +49.36% +0.74%
3 Years +48.57% +48.44% +0.13%
5 Years +21.35% +17.23% +4.12%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SCHA Fees VTWO Fees You Save
$10,000 10 years $80 $120 $40
$10,000 20 years $344 $515 $171
$10,000 30 years $1,112 $1,664 $552
$50,000 10 years $399 $598 $199
$50,000 30 years $5,560 $8,318 $2,758
$100,000 30 years $11,121 $16,637 $5,516

Risk Metrics

Based on 5 years of daily returns

Metric SCHA VTWO
Annualized Volatility 22.0% 22.5%
Max Drawdown -31.6% -33.0%
Sharpe Ratio 0.08 0.05

Dividend Comparison

Metric SCHA VTWO
Annual Dividend (per share) $0.34 $1.26
Dividend Yield 1.11% 1.19%
Distribution Frequency Quarterly Quarterly

Top Holdings

3 of top 9 holdings overlap (33% overlap in top holdings)

SCHA Top Holdings

NameWeight
Sandisk CorporationSNDK2.57%
Lumentum Holdings Inc.LITE1.32%
ATI Inc.ATI0.48%
Coeur Mining, Inc.CDE0.46%
Revolution Medicines, Inc.RVMD0.42%
EchoStar CorporationSATS0.41%
Nextpower Inc.NXT0.38%
MKS Inc.MKSI0.38%
MACOM Technology Solutions Holdings, Inc.MTSI0.36%
Rocket Companies, Inc.RKT0.35%

VTWO Top Holdings

NameWeight
Bloom Energy CorporationBE1.09%
FabrinetFN0.63%
Coeur Mining, Inc.CDE0.56%
Credo Technology Group Holding LtdCRDO0.55%
Hecla Mining CompanyHL0.51%
EchoStar CorporationSATS0.50%
Nextpower Inc.NXT0.49%
Kratos Defense & Security Solutions, Inc.KTOS0.48%
IonQ, Inc.IONQ0.42%

Which One Should You Choose?

Choose SCHA if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Either works if...

you just need broad us small cap exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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