SCHD vs VOO: Head-to-Head Comparison
SCHD vs VOO: Schwab U.S. Dividend Equity ETF has an expense ratio of 0.06% while Vanguard S&P 500 ETF charges 0.03%. SCHD holds 103 securities vs VOO's 503. 5-year returns: 12.10% vs 15.80%.
Last updated: April 2026
Dividend vs Growth
Quick Verdict
VOO edges out SCHD with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | SCHD | VOO |
|---|---|---|
| Expense Ratio | 0.06% | 0.03% |
| AUM | $62.0B | $560.0B |
| Dividend Yield | 3.40% | 1.30% |
| Holdings | 103 | 503 |
| 1-Year Return | 12.90% | 26.70% |
| 5-Year Return (Ann.) | 12.10% | 15.80% |
| 10-Year Return (Ann.) | 11.50% | 13.30% |
| Beta | 0.82 | 1.00 |
| P/E Ratio | 16.8 | 25.8 |
SCHD 5-year annualized return is 12.10% compared to VOO's 15.80%. Over 10 years, SCHD returned 11.50% vs VOO's 13.30%.
View data table
| Period | SCHD Return | VOO Return |
|---|---|---|
| YTD | 1.80% | 3.20% |
| 1 Year | 12.90% | 26.70% |
| 3 Year | 7.20% | 11.20% |
| 5 Year | 12.10% | 15.80% |
| 10 Year | 11.50% | 13.30% |
Key Differences Between SCHD and VOO
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.
VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.
The most notable differences are in fees (0.06% vs 0.03%), number of holdings (103 vs 503), and 5-year returns (12.10% vs 15.80%).
SCHD vs VOO multi-factor comparison: SCHD has a 0.06% expense ratio, 12.10% 5-year return, 103 holdings, 0.82 beta, and 3.40% yield. VOO has 0.03% expense ratio, 15.80% 5-year return, 503 holdings, 1.00 beta, and 1.30% yield.
View data table
| Metric | SCHD | VOO |
|---|---|---|
| Expense Ratio | 0.06% | 0.03% |
| 5-Year Return | 12.10% | 15.80% |
| Holdings | 103 | 503 |
| Beta | 0.82 | 1.00 |
| Dividend Yield | 3.40% | 1.30% |
Want the full framework? This 2-hour ETF course teaches you exactly how to pick, buy, and hold profitable ETFs — from zero to confident investor. Under $15.
Ready to invest? Open an IBKR account in 10 minutes and get free stock. $0 commissions on US ETFs • Fractional shares from $1 • 150+ global markets.
Holdings Overlap Analysis
0%
Holdings Overlap
SCHD and VOO share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
SCHD and VOO share 0% of their top holdings (low overlap). SCHD has 103 total holdings and VOO has 503.
View data table
| Metric | SCHD | VOO |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 103 | 503 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SCHD
Fee cost: $515
VOO
Fee cost: $258
Over 20 years, the fee difference amounts to $257 on a $10,000 investment. VOO saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, SCHD (0.06% fee) grows to $46,094 while VOO (0.03% fee) grows to $46,351. The fee difference costs $257.
View data table
| Year | SCHD Value | VOO Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,653 | $14,673 |
| 10 | $21,470 | $21,529 |
| 15 | $31,458 | $31,590 |
| 20 | $46,094 | $46,351 |
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 VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.
Can You Own Both SCHD and VOO?
Absolutely! With only 0% overlap, SCHD and VOO 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 VOO?▾
VOO edges out SCHD with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors. However, both are solid options. SCHD is best for investors who want income-focused investors who want a reliable and growing dividend stream, while VOO is better suited for beginning investors looking for a simple core portfolio holding.
What is the difference between SCHD and VOO?▾
SCHD (Schwab U.S. Dividend Equity ETF) tracks u.s. large-cap dividend investments with 103 holdings and a 0.06% expense ratio. VOO (Vanguard S&P 500 ETF) focuses on u.s. large-cap blend with 503 holdings at 0.03%. Their top holdings overlap by 0%.
Can I own both SCHD and VOO?▾
Yes! With only 0% holdings overlap, SCHD and VOO complement each other well. Owning both gives you broader diversification.