ETF Versus

SCHD vs VIG

Schwab U.S. Dividend Equity ETF vs Vanguard Dividend Appreciation Index Fund ETF Shares

Last updated: 2026-04-02

SCHD Schwab

Schwab U.S. Dividend Equity ETF (SCHD) is an exchange-traded fund issued by Schwab that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a low expense ratio of 0.06%. The fund offers an attractive dividend yield of 3.46%. Launched in 2011, the fund has a 15-year track record.

AUM: $83.9B ER: 0.06% Yield: 3.46% Since: Oct 20, 2011
VIG Vanguard

Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.60%. Launched in 2006, the fund has a 20-year track record.

AUM: $97.2B ER: 0.04% Yield: 1.60% Since: Apr 21, 2006

Quick Verdict

VIG has a slightly lower expense ratio (0.04% vs 0.06%), saving about $40 per $10,000 over 10 years. VIG has edged ahead over the past year (11.4% vs 9.5%). Income investors may prefer SCHD for its higher yield (3.5% vs 1.6%).

Key Metrics

Metric SCHD VIG
Expense Ratio 0.06% 0.04%
Dividend Yield 3.5% 1.6%
Fund Family Schwab Vanguard
Category US Dividend US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

90 103 116 129 142 155 2021-04 2022-06 2023-09 2024-12 2026-04
SCHD +23.3%
VIG +43.7%

Performance Comparison

Period SCHD VIG Difference
1 Month -4.24% -5.05% +0.81%
3 Months +10.03% -2.23% +12.26%
6 Months +11.31% -0.97% +12.28%
YTD +10.03% -2.23% +12.26%
1 Year +9.47% +11.38% -1.91%
3 Years +24.43% +39.10% -14.67%
5 Years +23.27% +43.71% -20.44%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SCHD Fees VIG Fees You Save
$10.000 10 years $120 $80 $40
$10.000 20 years $515 $344 $171
$10.000 30 years $1.664 $1.112 $552
$50.000 10 years $598 $399 $199
$50.000 30 years $8.318 $5.560 $2.758
$100.000 30 years $16.637 $11.121 $5.516

Risk Metrics

Based on 5 years of daily returns

Metric SCHD VIG
Annualized Volatility 14.6% 14.3%
Max Drawdown -18.9% -21.5%
Sharpe Ratio 0.05 0.27

Dividend Comparison

Metric SCHD VIG
Annual Dividend (per share) $1.06 $3.45
Dividend Yield 3.46% 1.60%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

SCHD Top Holdings

NameWeight
Chevron CorporationCVX4.66%
ConocoPhillipsCOP4.33%
Merck & Co., Inc.MRK4.08%
Verizon Communications Inc.VZ4.03%
The Coca-Cola CompanyKO3.98%
Texas Instruments IncorporatedTXN3.86%
PepsiCo, Inc.PEP3.83%
Amgen Inc.AMGN3.78%
Abbott LaboratoriesABT3.78%
The Procter & Gamble CompanyPG3.70%

VIG Top Holdings

NameWeight
Broadcom Inc.AVGO5.92%
Apple Inc.AAPL3.89%
Eli Lilly and CompanyLLY3.70%
Microsoft CorporationMSFT3.45%
JPMorgan Chase & Co.JPM3.42%
Exxon Mobil CorporationXOM2.87%
Johnson & JohnsonJNJ2.65%
Walmart Inc.WMT2.48%
Visa Inc.V2.23%
Costco Wholesale CorporationCOST1.98%

Which One Should You Choose?

Choose VIG if...

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

Choose SCHD if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Either works if...

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

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