Dividend comparison

BND vs SCHD: Which Is Better for Income?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Total Bond Market ETF and Schwab U.S. Dividend Equity ETF, side by side. Updated October 21, 2026.

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BND vs SCHD: key differences
The short answer, from the latest data on this page.
  • Fees. BND is cheaper at 0.03% a year versus 0.06% for SCHD. On $10,000 that is $3 a year less in fees.
  • Income. BND pays more income, yielding 4.15% over the last twelve months versus 3.04% for SCHD. That is about $111 more a year on $10,000. BND pays monthly, SCHD pays quarterly.
  • Performance. Over the last 5 years, SCHD returned 57.9% versus -2.4% for BND, with dividends reinvested. $10,000 would have grown to $15,790 in SCHD and $9,760 in BND.
  • Risk. Their worst declines over the last 5 years were similar: -17.4% for BND and -16.8% for SCHD from peak to trough.
  • Diversification. BND holds 346 positions and SCHD holds 102.
  • Dividend growth. BND grew its yearly payout 12.3% a year over the last 4 years, versus 8.7% for SCHD.
  • Size. BND is the larger fund with $389.3 billion in assets, against $114.7 billion for SCHD.

Bottom line: BND fits better if you care most about lower fees, more income today, faster dividend growth and broader diversification. SCHD fits better if you care most about stronger 5-year returns.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricBND
Vanguard Total Bond Market ETF
SCHD
Schwab U.S. Dividend Equity ETF
Dividend yield (TTM)4.15%3.04%
Dividend / share (TTM)$2.94$1.05
Payout frequencyMonthlyQuarterly
Last dividend$0.2485 on Oct 5, 2026$0.2665 on Sep 28, 2026
Ex-dividend dateOct 1, 2026Sep 23, 2026
Dividend growth (CAGR)12.3% over 4 yrs8.7% over 4 yrs
Price$70.75$34.69
Dividend growth streak4 years13 years
Beta0.990.58
Max drawdown (5Y)-17.4%-16.8%
Market cap$389.35B$98.31B
ExchangeNASDAQAMEX
Expense ratio0.03%0.06%
Assets under management$389.30B$114.71B
Number of holdings346102
Top 10 concentration—41.7%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

BND

$34.61/mo

$415 /yr at 4.15% yield

SCHD

$25.32/mo

$304 /yr at 3.04% yield

Dividend history
Total dividends paid per share in each calendar year. BND pays monthly; SCHD pays quarterly.
YearBNDSCHD
2025$2.8575$1.0476
2024$2.6381$0.9944
2023$2.2692$0.8862
2022$1.8669$0.8540
2021$1.7987$0.7499
Strategy: Dividend equity
Rules-based equity funds that screen for companies paying sustainable or rising dividends, aiming at income plus long-term share-price participation. The screen is what defines the fund: yield-ranked indexes deliver more cash now, dividend-growth indexes deliberately exclude the highest payers in favor of durability. Both approaches produce a sector mix that looks nothing like the broad market, typically heavier in financials, healthcare, staples and industrials.

Expect stretches of underperformance versus the broad market whenever leadership comes from the high-growth, low-yield companies these screens exclude.

What BND vs SCHD actually do

SCHD
An index ETF holding about 100 US dividend payers screened for balance-sheet strength and a long payment record.

It tracks the Dow Jones U.S. Dividend 100 Index, which first requires at least ten consecutive years of dividends, then ranks the survivors on a composite of cash flow to total debt, return on equity, dividend yield and five-year dividend growth. The top 100 are held at market-cap weights with a 4% cap per stock and 25% per sector, reconstituted annually and rebalanced quarterly. Those quality screens push the portfolio toward mature value sectors and largely out of high-growth technology, which is the single biggest reason its return diverges from the S&P 500 in either direction.

Suits an investor who wants a growing dividend stream plus share-price participation and can sit out technology-led rallies without changing course. Not a match for someone who needs the highest available current yield or wants full market exposure.

Core dividend holding

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $9,760 in BND and $15,790 in SCHD.
PeriodBNDSCHD
1 month-0.28%3.83%
3 months-1.97%6.77%
Year to date-1.89%29.59%
1 year-2.13%33.01%
3 years14.95%66.22%
5 years-2.40%57.90%
  • BND
  • SCHD
7812116420212022202320242025202698158

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • BND
  • SCHD
0%25%50%75%100%Cash & Others100.0%0.0%Consumer Defensive20.1%Healthcare19.3%Technology16.0%Energy15.3%Financial Services9.2%Industrials7.3%Consumer Cyclical6.7%Communication Services6.0%Utilities0.1%
Top 10 holdings
Largest positions by portfolio weight.

SCHD102 holdings total

NameWeight
TXNTEXAS INSTRUMENT4.40%
PGPROCTER & GAMBLE4.34%
CVXCHEVRON4.31%
KOCOCA-COLA4.30%
COPCONOCOPHILLIPS4.30%
QCOMQUALCOMM4.15%
UNHUNITEDHEALTH GROUP4.14%
HDHOME DEPOT3.95%
AMGNAMGEN INC3.90%
PEPPEPSICO3.86%

Quick verdict

BND fits better if you care most about lower fees, more income today, faster dividend growth and broader diversification. SCHD fits better if you care most about stronger 5-year returns. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is BND or SCHD better for dividend income?
It depends on your goals. BND currently yields 4.15% Trailing Twelve Months (TTM) while SCHD yields 3.04%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between BND and SCHD?
Vanguard Total Bond Market ETF (BND) is an ETF listed on NASDAQ. Schwab U.S. Dividend Equity ETF (SCHD) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, BND or SCHD?
BND has the lower expense ratio. BND charges 0.03% a year and SCHD charges 0.06%, a difference of $3 a year on a $10,000 investment.
Which has performed better, BND or SCHD?
Over the last 5 years, SCHD has the higher total return with dividends reinvested: BND returned -2.4% and SCHD returned 57.9%. Past performance does not predict future returns.
Which is riskier, BND or SCHD?
Measured by the worst peak-to-trough decline over the last five years, BND has been riskier: BND fell as much as 17.4% and SCHD as much as 16.8%. Their betas are 0.99 and 0.58.
How often do BND and SCHD pay dividends?
BND pays monthly and SCHD pays quarterly.
How much income does $10,000 in BND vs SCHD generate?
At current TTM yields, $10,000 in BND would generate roughly $34.61 per month ($415 annually). The same amount in SCHD would produce about $25.32 per month ($304 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both BND and SCHD?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare BND vs SCHD with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how BND and SCHD fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.