Dividend comparison
SCHD vs VIG: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Schwab U.S. Dividend Equity ETF and Vanguard Dividend Appreciation ETF, side by side. Updated October 24, 2026.
- Fees. VIG is cheaper at 0.04% a year versus 0.06% for SCHD. On $10,000 that is $2 a year less in fees.
- Income. SCHD pays more income, yielding 2.99% over the last twelve months versus 1.50% for VIG. That is about $149 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, SCHD returned 60.9% versus 59.9% for VIG, with dividends reinvested. $10,000 would have grown to $16,090 in SCHD and $15,994 in VIG.
- Risk. VIG has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -20.4%, against -16.8% for SCHD.
- Diversification. VIG holds 338 positions and SCHD holds 102. The ten largest positions make up 41.4% of SCHD and 34.9% of VIG.
- Overlap. 14% of the two portfolios overlap by weight, across 15 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. SCHD grew its yearly payout 8.7% a year over the last 4 years, versus 7.5% for VIG.
Bottom line: SCHD fits better if you care most about more income today, smaller drawdowns and faster dividend growth. VIG fits better if you care most about broader diversification.
| Metric | SCHD Schwab U.S. Dividend Equity ETF | VIG Vanguard Dividend Appreciation ETF |
|---|---|---|
| Dividend yield (TTM) | 2.99% | 1.50% |
| Dividend / share (TTM) | $1.05 | $3.65 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.2665 on Sep 28, 2026 | $0.9295 on Sep 30, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 28, 2026 |
| Dividend growth (CAGR) | 8.7% over 4 yrs | 7.5% over 4 yrs |
| Price | $35.27 | $243.12 |
| Dividend growth streak | 13 years | 12 years |
| Beta | 0.58 | 0.82 |
| Max drawdown (5Y) | -16.8% | -20.4% |
| Market cap | $98.31B | $127.69B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.06% | 0.04% |
| Assets under management | $118.70B | $127.70B |
| Number of holdings | 102 | 338 |
| Top 10 concentration | 41.4% | 34.9% |
SCHD
$24.91/mo
$299 /yr at 2.99% yield
VIG
$12.50/mo
$150 /yr at 1.50% yield
| Year | SCHD | VIG |
|---|---|---|
| 2025 | $1.0476 | $3.5580 |
| 2024 | $0.9944 | $3.3791 |
| 2023 | $0.8862 | $3.2081 |
| 2022 | $0.8540 | $2.9725 |
| 2021 | $0.7499 | $2.6601 |
Expect stretches of underperformance versus the broad market whenever leadership comes from the high-growth, low-yield companies these screens exclude.
What SCHD vs VIG actually do
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
It tracks the S&P U.S. Dividend Growers Index, which requires a decade of unbroken annual increases and then removes the top 25% of eligible names by yield. Screening out the highest payers is intentional: an unusually high yield often signals a stretched payout or a falling share price, and the index is built for durability rather than for current income. The result is a lower starting yield than most dividend funds and a portfolio that leans toward large, stable, profitable companies.
Suits a long-horizon investor who cares more about the dividend rising every year than about the size of the first payment. Not appropriate if you need meaningful cash flow from the position today.
Dividend growth, quality tilt
| Period | SCHD | VIG |
|---|---|---|
| 1 month | 5.98% | 2.68% |
| 3 months | 8.39% | 2.47% |
| Year to date | 31.75% | 10.62% |
| 1 year | 35.08% | 11.97% |
| 3 years | 70.30% | 65.14% |
| 5 years | 60.90% | 59.94% |
- SCHD
- VIG
Both series indexed to 100 on 2021-10-23 using the adjusted closing price series. Past performance does not guarantee future results.
- SCHD
- VIG
SCHD102 holdings total
Quick verdict
SCHD fits better if you care most about more income today, smaller drawdowns and faster dividend growth. VIG fits better if you care most about broader diversification. Model the holding inside your real portfolio before deciding.
Frequently asked questions
Is SCHD or VIG better for dividend income?
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How much do SCHD and VIG overlap?
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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.