SCHD vs VIG: Head-to-Head Comparison
SCHD vs VIG: Schwab U.S. Dividend Equity ETF has an expense ratio of 0.06% while Vanguard Dividend Appreciation ETF charges 0.06%. SCHD holds 103 securities vs VIG's 338. 5-year returns: 12.10% vs 13.10%.
Last updated: April 2026
Dividend
Quick Verdict
Both ETFs score equally well for beginners (9/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | SCHD | VIG |
|---|---|---|
| Expense Ratio | 0.06% | 0.06% |
| AUM | $62.0B | $86.0B |
| Dividend Yield | 3.40% | 1.70% |
| Holdings | 103 | 338 |
| 1-Year Return | 12.90% | 19.80% |
| 5-Year Return (Ann.) | 12.10% | 13.10% |
| 10-Year Return (Ann.) | 11.50% | 11.90% |
| Beta | 0.82 | 0.88 |
| P/E Ratio | 16.8 | 23.1 |
SCHD 5-year annualized return is 12.10% compared to VIG's 13.10%. Over 10 years, SCHD returned 11.50% vs VIG's 11.90%.
View data table
| Period | SCHD Return | VIG Return |
|---|---|---|
| YTD | 1.80% | 2.50% |
| 1 Year | 12.90% | 19.80% |
| 3 Year | 7.20% | 8.90% |
| 5 Year | 12.10% | 13.10% |
| 10 Year | 11.50% | 11.90% |
Key Differences Between SCHD and VIG
SCHD (Schwab U.S. Dividend Equity ETF) is a u.s. large-cap dividend fund managed by Charles Schwab. SCHD focuses on high-quality U.S. companies with strong track records of paying and growing dividends. It uses a rules-based approach to select about 100 stocks that have consistently paid dividends for at least 10 years. Beginners who want both income and growth often find SCHD attractive because it combines a solid dividend yield with quality stock selection at a very low cost.
VIG (Vanguard Dividend Appreciation ETF) is a u.s. large-cap dividend growth fund managed by Vanguard. VIG invests in U.S. companies that have increased their dividends for at least 10 consecutive years, focusing on dividend growth rather than high current yield. This approach tends to select financially healthy companies with sustainable business models. Beginners who want quality companies that regularly reward shareholders will appreciate VIG's focus on consistent dividend growers.
The most notable differences are in fees (0.06% vs 0.06%), number of holdings (103 vs 338), and 5-year returns (12.10% vs 13.10%).
SCHD vs VIG multi-factor comparison: SCHD has a 0.06% expense ratio, 12.10% 5-year return, 103 holdings, 0.82 beta, and 3.40% yield. VIG has 0.06% expense ratio, 13.10% 5-year return, 338 holdings, 0.88 beta, and 1.70% yield.
View data table
| Metric | SCHD | VIG |
|---|---|---|
| Expense Ratio | 0.06% | 0.06% |
| 5-Year Return | 12.10% | 13.10% |
| Holdings | 103 | 338 |
| Beta | 0.82 | 0.88 |
| Dividend Yield | 3.40% | 1.70% |
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Holdings Overlap Analysis
5%
Holdings Overlap
SCHD and VIG share only 5% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
SCHD and VIG share 5% of their top holdings (low overlap). SCHD has 103 total holdings and VIG has 338. Common holdings include HD.
View data table
| Metric | SCHD | VIG |
|---|---|---|
| Overlap | 5% | 5% |
| Unique Holdings | 95% | 95% |
| Total Holdings | 103 | 338 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SCHD
Fee cost: $515
VIG
Fee cost: $515
Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, SCHD (0.06% fee) grows to $46,094 while VIG (0.06% fee) grows to $46,094. The fee difference costs $0.
View data table
| Year | SCHD Value | VIG Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,653 | $14,653 |
| 10 | $21,470 | $21,470 |
| 15 | $31,458 | $31,458 |
| 20 | $46,094 | $46,094 |
Which One Should a Beginner Choose?
Choose SCHD if: You want income-focused investors who want a reliable and growing dividend stream, conservative investors who prefer lower volatility with quality companies, retirees or pre-retirees building a dividend income portfolio. It's managed by Charles Schwab with an expense ratio of 0.06%.
Choose VIG if: You want long-term investors who want dividend growth compounding over decades, investors seeking a balance between growth potential and income reliability, those who prefer quality companies with proven financial discipline. It's managed by Vanguard with an expense ratio of 0.06%.
Can You Own Both SCHD and VIG?
Absolutely! With only 5% overlap, SCHD and VIG 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
Should I buy SCHD or VIG?▾
Both ETFs score equally well for beginners (9/10). Your choice depends on your specific investment goals. However, both are solid options. SCHD is best for investors who want income-focused investors who want a reliable and growing dividend stream, while VIG is better suited for long-term investors who want dividend growth compounding over decades.
What is the difference between SCHD and VIG?▾
SCHD (Schwab U.S. Dividend Equity ETF) tracks u.s. large-cap dividend investments with 103 holdings and a 0.06% expense ratio. VIG (Vanguard Dividend Appreciation ETF) focuses on u.s. large-cap dividend growth with 338 holdings at 0.06%. Their top holdings overlap by 5%.
Can I own both SCHD and VIG?▾
Yes! With only 5% holdings overlap, SCHD and VIG complement each other well. Owning both gives you broader diversification.