What does the expense ratio mean for SCHR and VGIT?

The expense ratio represents the annual management fee charged by the fund providers. Both SCHR and VGIT have an identical expense ratio of 0.03%, which translates to a fee of 30 pence for every £100 invested annually. This low cost structure minimises drag on returns, meaning investors retain more of their potential yield over time. Since the fees are equal in percentage terms, the cost difference between these two funds is zero percentage points, allowing investors to focus on other factors like fund size and history.

How do these funds track the Treasury market?

SCHR and VGIT are designed to track the performance of the intermediate-term US Treasury market. However, specific index tracked details are not available for either fund in this dataset. Generally, intermediate-term funds hold government bonds with maturities ranging from three to ten years. Without explicit index data, investors should rely on the funds' category labels and historical performance to gauge their exposure. The lack of transparency regarding the specific benchmark means that comparing tracking accuracy between the two requires external verification beyond the basic fund summaries provided here.

Why is fund inception date relevant for comparison?

The inception date indicates how long a fund has been trading and accumulating data. VGIT was established on 19 November 2009, giving it a longer track record compared to SCHR, which launched on 5 August 2010. A longer history can provide more data points for evaluating performance consistency and resilience across different market cycles. While both funds have been active for a significant period, the nearly one-year difference means VGIT has slightly more historical evidence available for analysis. This does not guarantee better performance but offers a broader dataset for educational comparison.

What are the main similarities between SCHR and VGIT?

Both SCHR and VGIT fall under the Intermediate Government category, offering exposure to US Treasury bonds. They share an identical expense ratio of 0.03%, ensuring minimal fee drag for investors in either fund. Additionally, both funds provide dividend yields that are comparable, with SCHR at 4.02% and VGIT at 3.99%. These similarities suggest that both products serve a similar function in a portfolio by targeting intermediate-term government debt. The primary structural difference lies in their net assets and inception dates, rather than their cost or general market focus.

What does the difference in net assets imply?

Net assets reflect the total value of funds held by an investment vehicle. VGIT manages 39.7 billion dollars, significantly more than SCHR's 13.2 billion dollars. A larger asset base often indicates higher liquidity and potentially greater operational efficiency, which can be beneficial for large-scale trading. However, SCHR's 13.2 billion dollars still provides sufficient scale for most individual investors. The difference of 26.5 billion dollars highlights VGIT's larger market share, but it does not inherently make one fund superior. Investors should consider this in the context of their own trading needs and preferences for fund size.

Which investing goals are associated with these funds?

Funds like SCHR and VGIT are typically associated with goals of capital preservation and income generation within a diversified portfolio. By focusing on intermediate-term US Treasury bonds, they aim to provide stability compared to equities while offering yields that can supplement income. Investors often use such funds to balance risk against higher-volatile assets. The choice between them might depend on preferences for specific issuers or fund characteristics like size. Since both serve similar economic functions, they are generally suited for moderate-risk strategies focused on government debt exposure rather than high-growth equity potential.

How do the dividend yields compare between the funds?

Dividend yield represents the income generated by the fund relative to its price. SCHR offers a dividend yield of 4.02%, while VGIT provides 3.99%. This difference of 0.03 percentage points indicates that SCHR currently has a marginally higher payout rate. However, yields can fluctuate based on market interest rates and fund performance. For investors focused on income, this small difference might be negligible compared to other factors. It is important to remember that past yields do not predict future distributions, and market conditions significantly influence the actual returns an investor receives from these bonds.

What role do US Treasuries play in the market?

US Treasuries are government debt securities considered low-risk investments because they are backed by the full faith and credit of the US government. Intermediate-term Treasuries, as targeted by funds like SCHR and VGIT, typically have maturities between three and ten years. They often serve as a hedge against equity market volatility and provide a stable income stream. Changes in interest rates directly affect the price of these bonds; when rates rise, bond prices generally fall, and vice versa. Understanding this relationship is crucial for interpreting the potential performance of these funds.

How are distributions handled for these ETFs?

ETFs like SCHR and VGIT collect income from their underlying bonds and distribute it to shareholders. The dividend yields provided (4.02% for SCHR and 3.99% for VGIT) reflect these distributions. Typically, these funds pay out dividends on a regular schedule, often monthly or quarterly, though the exact frequency depends on the fund's specific policy. Investors can choose to receive these payments as cash or reinvest them to buy more shares. Understanding the distribution mechanism helps in planning cash flow needs or compounding growth, although specific payment dates require checking the issuer's latest updates.

Why are some data fields listed as 'not available'?

In the provided dataset, fields such as 'Index tracked', 'Top holdings', and 'Sector weights' are marked as 'not available' for both SCHR and VGIT. This lack of data limits the ability to perform a detailed, bottom-up analysis of portfolio composition. Investors should not assume these fields are empty by design but rather that the specific source used did not report them. To fill this gap, one must consult official fund prospectuses or fact sheets. This highlights the importance of verifying data sources when conducting comprehensive financial comparisons.

What should beginners keep in mind when using this comparison?

This comparison is for educational purposes only and does not constitute financial advice. Beginners should understand that past performance, expense ratios, and current yields do not guarantee future results. Market conditions, such as interest rate changes, significantly impact Treasury bond funds like SCHR and VGIT. Always verify data with official sources before making investment decisions. While the funds appear similar in cost and category, differences in liquidity and history exist. Consult a qualified financial advisor to determine which fund, if any, aligns with your personal financial goals and risk tolerance.

SCHR vs VGIT

Q: How similar are the top holdings of these two funds?

According to the provided data, there are none among the listed top holdings shared between SCHR and VGIT. This suggests that while both funds track a similar intermediate Treasury market, their specific portfolio compositions differ. The data also notes that detailed top holdings and sector weights are not available for either fund, which limits a deeper analysis of this lack of overlap. Investors should be aware that different holdings can lead to variances in performance and risk profiles, even when the underlying market category is identical. Further research into official fund documents is needed.

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares the Schwab Intermediate-Term US Treasury ETF (SCHR) and the Vanguard Intermediate-Term Treasury ETF (VGIT). Both fund have an expense ratio of 0.03%. The comparison looks at fees, holdings, dividends, and how each fund tracks its market. Top holdings and sector weights are not available for either fund. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHR

Metric

VGIT

0.03%

Expense Ratio

0.03%

4.02%

Dividend Yield

3.99%

$13.21B

Net Assets

$39.66B

101

Holdings

104

Aug 5, 2010

Inception Date

Nov 19, 2009

–

Index Tracked

–

Intermediate Government

Fund Category

Intermediate Government

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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IEF vs VGIT

Compare IEF and VGIT ETFs on expense ratios, net assets, dividend yields, and tracking. Review factual data to distinguish these Treasury bond funds.

Investment Analysis

SCHR

Pros

SCHR has a very low expense ratio of 0.03 percent, which minimises ongoing fee drag on returns.
Net assets of 13.2 billion dollars provide sufficient scale for liquidity and operational efficiency.
It was launched on 5 August 2010, giving investors a reasonably long track record.

Considerations

Net assets of 13.2 billion dollars are lower than its main competitor, VGIT.
Index tracked details are not available, limiting transparency regarding its specific benchmark methodology.
Dividend yield of 4.02 percent is marginally higher but comes with slightly lower net assets.

VGIT

Pros

VGIT manages 39.7 billion dollars in net assets, indicating significant scale and liquidity.
The fund has a very low expense ratio of 0.03 percent, reducing long-term costs.
It was established on 19 November 2009, offering an extensive history and track record.

Considerations

Dividend yield of 3.99 percent is slightly lower than that of SCHR.
Index tracked information is not available, which obscures the precise benchmark being followed.
Top holdings details are not available, preventing a detailed analysis of current portfolio composition.

About SCHR and VGIT

SCHR (SCHR)

The Schwab Intermediate-Term US Treasury ETF (SCHR) is designed to provide investors with exposure to U.S. government and agency debt securities that have maturities between three and ten years. As an exchange-traded fund, it offers a cost-efficient way to diversify a portfolio into fixed-income assets. The fund maintains a low expense ratio of 0.03%, making it an attractive option for those seeking affordable access to the Treasury market. With a current dividend yield of approximately 4.02%, it may appeal to income-focused investors looking for regular payouts, though distributions can vary. The fund holds 101 securities, contributing to its diversification. It is essential to note that bond prices generally move inversely to interest rates; therefore, the value of the ETF can fluctuate. Past performance is not a reliable indicator of future results, and investors should consider their risk tolerance before investing.

VGIT (VGIT)

The Vanguard Intermediate-Term Treasury ETF (VGIT) is designed to track the performance of a market-weighted index composed of US government bonds with maturities between three and ten years. As an exchange-traded fund, it offers investors exposure to a diversified portfolio of 104 holdings, primarily consisting of fixed-income securities backed by the full faith and credit of the US government. This structure typically aims to provide a balance between yield potential and interest rate risk compared to shorter or longer-term treasury options. With a low expense ratio of 0.03%, it is often used by investors seeking stability and income within a broader portfolio. It is important to remember that while US government bonds are considered low credit risk, their market value can fluctuate based on changes in interest rates. Consequently, returns are not guaranteed, and values may rise or fall over time.

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SCHR vs VGIT

Fund Snapshot

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Investment Analysis

SCHR

Pros

Considerations

VGIT

Pros

Considerations

About SCHR and VGIT

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Frequently asked questions

What does the expense ratio mean for SCHR and VGIT?

How do these funds track the Treasury market?

Why is fund inception date relevant for comparison?

What are the main similarities between SCHR and VGIT?

How similar are the top holdings of these two funds?

What does the difference in net assets imply?

Which investing goals are associated with these funds?

How do the dividend yields compare between the funds?

What role do US Treasuries play in the market?

How are distributions handled for these ETFs?

Why are some data fields listed as 'not available'?

What should beginners keep in mind when using this comparison?

Fund Snapshot

About SCHR and VGIT

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