Dividend comparison

SCHD vs VUG: Which Is Better?

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

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SCHD vs VUG: key differences
The short answer, from the latest data on this page.
  • Fees. VUG is cheaper at 0.03% a year versus 0.06% for SCHD. On $10,000 that is $3 a year less in fees.
  • Income. SCHD pays more income, yielding 3.04% over the last twelve months versus 0.39% for VUG. That is about $265 more a year on $10,000. Both pay quarterly.
  • Performance. Over the last 5 years, VUG returned 78.4% versus 57.9% for SCHD, with dividends reinvested. $10,000 would have grown to $17,845 in VUG and $15,790 in SCHD.
  • Risk. VUG has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -35.6%, against -16.8% for SCHD.
  • Diversification. VUG holds 166 positions and SCHD holds 102. The ten largest positions make up 41.7% of SCHD and 63.1% of VUG.
  • Overlap. 1% of the two portfolios overlap by weight, across 3 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 6.9% for VUG.
  • Size. VUG is the larger fund with $392.2 billion in assets, against $114.7 billion for SCHD.

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

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricSCHD
Schwab U.S. Dividend Equity ETF
VUG
Vanguard Morningstar Growth ETF
Dividend yield (TTM)3.04%0.39%
Dividend / share (TTM)$1.05$0.35
Payout frequencyQuarterlyQuarterly
Last dividend$0.2665 on Sep 28, 2026$0.0910 on Sep 30, 2026
Ex-dividend dateSep 23, 2026Sep 28, 2026
Dividend growth (CAGR)8.7% over 4 yrs6.9% over 4 yrs
Price$34.69$88.67
Dividend growth streak13 years3 years
Beta0.581.27
Max drawdown (5Y)-16.8%-35.6%
Market cap$98.31B$392.24B
ExchangeAMEXAMEX
Expense ratio0.06%0.03%
Assets under management$114.71B$392.20B
Number of holdings102166
Top 10 concentration41.7%63.1%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

SCHD

$25.32/mo

$304 /yr at 3.04% yield

VUG

$3.25/mo

$39 /yr at 0.39% yield

Dividend history
Total dividends paid per share in each calendar year. SCHD pays quarterly; VUG pays quarterly.
YearSCHDVUG
2025$1.0476$0.3351
2024$0.9944$0.3188
2023$0.8862$0.3003
2022$0.8540$0.2499
2021$0.7499$0.2567
Strategy: Large-cap growth
Funds that hold the faster-growing half of the large-cap market, selected by measures like earnings growth, sales growth and price momentum. In practice that means heavy weights in technology and communication companies, with the largest few names often making up a third of the fund or more. Dividends are small because growth companies reinvest their cash instead of paying it out.

Concentration in a handful of mega-cap stocks makes these funds swing harder than the broad market in both directions, and they offer little current income.

What SCHD vs VUG 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 $15,790 in SCHD and $17,845 in VUG.
PeriodSCHDVUG
1 month3.83%0.01%
3 months6.77%4.01%
Year to date29.59%9.40%
1 year33.01%10.23%
3 years66.22%99.93%
5 years57.90%78.45%
  • SCHD
  • VUG
61127193202120222023202420252026158178

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.
  • SCHD
  • VUG
0%15%30%45%60%Technology16.0%60.2%Healthcare19.3%4.2%Consumer Defensive20.1%1.3%Communication Services6.0%14.7%Consumer Cyclical6.7%9.8%Energy15.3%0.3%Financial Services9.2%3.9%Industrials7.3%4.4%Real Estate0.9%Utilities0.1%0.8%Other0.0%0.4%
SCHD vs VUG holdings overlap
1% overlap by weight, with 3 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Largest shared holdingsSCHD weightVUG weight
TXNTEXAS INSTRUMENT4.40%0.36%
FASTFASTENAL1.44%0.18%
BXBLACKSTONE1.98%0.13%
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%

VUG166 holdings total

NameWeight
NVDANVIDIA Corp13.48%
AAPLApple Inc12.50%
MSFTMicrosoft Corp9.74%
GOOGLAlphabet Inc5.16%
AVGOBroadcom Inc4.34%
AMZNAmazon.com Inc4.26%
METAMeta Platforms Inc4.23%
GOOGAlphabet Inc4.09%
AMDAdvanced Micro Devices Inc2.66%
TSLATesla Inc2.65%

Quick verdict

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

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Frequently asked questions

Is SCHD or VUG better for dividend income?
It depends on your goals. SCHD currently yields 3.04% Trailing Twelve Months (TTM) while VUG yields 0.39%. 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 SCHD and VUG?
Schwab U.S. Dividend Equity ETF (SCHD) is an ETF listed on AMEX. Vanguard Morningstar Growth ETF (VUG) 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, SCHD or VUG?
VUG has the lower expense ratio. SCHD charges 0.06% a year and VUG charges 0.03%, a difference of $3 a year on a $10,000 investment.
Which has performed better, SCHD or VUG?
Over the last 5 years, VUG has the higher total return with dividends reinvested: SCHD returned 57.9% and VUG returned 78.4%. Past performance does not predict future returns.
Which is riskier, SCHD or VUG?
Measured by the worst peak-to-trough decline over the last five years, VUG has been riskier: SCHD fell as much as 16.8% and VUG as much as 35.6%. Their betas are 0.58 and 1.27.
How much do SCHD and VUG overlap?
About 1% of the two portfolios overlap by weight, across 3 shared holdings. The largest shared positions are TXN, FAST, BX. Holding both still adds meaningful diversification.
How often do SCHD and VUG pay dividends?
Both pay quarterly. The most recent payments were $0.2665 for SCHD and $0.0910 for VUG.
How much income does $10,000 in SCHD vs VUG generate?
At current TTM yields, $10,000 in SCHD would generate roughly $25.32 per month ($304 annually). The same amount in VUG would produce about $3.25 per month ($39 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both SCHD and VUG?
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 SCHD vs VUG with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how SCHD and VUG 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.