VOO vs SCHD: Head-to-Head Comparison
Last updated: March 2026 • Growth vs Dividend
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
Key Differences Between VOO and SCHD
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.
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.
The most notable differences are in fees (0.03% vs 0.06%), number of holdings (503 vs 103), and 5-year returns (15.80% vs 12.10%).
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Holdings Overlap Analysis
0%
Holdings Overlap
VOO and SCHD share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VOO
Fee cost: $258
SCHD
Fee cost: $515
Over 20 years, the fee difference amounts to $257 on a $10,000 investment. VOO saves you more in fees over time.
Which One Should a Beginner Choose?
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%.
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%.
Can You Own Both VOO and SCHD?
Absolutely! With only 0% overlap, VOO and SCHD 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.
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Frequently Asked Questions
Should I buy VOO or SCHD?▾
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. VOO is best for investors who want beginning investors looking for a simple core portfolio holding, while SCHD is better suited for income-focused investors who want a reliable and growing dividend stream.
What is the difference between VOO and SCHD?▾
VOO (Vanguard S&P 500 ETF) tracks u.s. large-cap blend investments with 503 holdings and a 0.03% expense ratio. SCHD (Schwab U.S. Dividend Equity ETF) focuses on u.s. large-cap dividend with 103 holdings at 0.06%. Their top holdings overlap by 0%.
Can I own both VOO and SCHD?▾
Yes! With only 0% holdings overlap, VOO and SCHD complement each other well. Owning both gives you broader diversification.