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Security Comparison

SCHD vs SWVXX: Which Is the Better Pick in 2026?

A head-to-head comparison of Schwab U.S. Dividend Equity ETF and Schwab Value Advantage Money Fund - Investor Shares covering yield, cost, risk, and income potential.

Data updated August 13, 2026

Best for

  • SCHDInvestors who want a quality-dividend tilt rather than the whole market.
  • SWVXXInvestors who want higher current income (3.78% vs 2.95% for SCHD).

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSCHDSWVXX
Full nameSchwab U.S. Dividend Equity ETFSchwab Value Advantage Money Fund - Investor Shares
IssuerSchwabSchwab
Last Close$34.26 as of August 13, 2026$1.00 as of August 13, 2026
Distribution yield2.95%3.78%
Distribution Safety Score™ 100—
Expense ratio0.06%—
AUM$106B$249B
Distribution frequencyQuarterlyMonthly
Underlying indexDow Jones U.S. Dividend 100 Index—
ObjectiveSeeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.Seeks the highest current income consistent with stability of capital and liquidity. Invests in high-quality, short-term money market securities issued by U.S. and foreign entities — including commercial paper, certificates of deposit, and corporate debt obligations. Commonly used as a higher-yielding cash sweep alternative for Schwab brokerage accounts.
Asset classEquityFixed Income
Inception date10/20/201104/20/1992
Beta0.560.003
Last dividend$0.2525$0.0032
Ex-dividend date06/24/202607/31/2026

Bottom lineChoose SCHD if you want a quality-dividend tilt rather than the whole market. Choose SWVXX if you want higher current income (3.78% vs 2.95% for SCHD).

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Schwab
ETFs34
Total AUM$605B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.

See our curated list of related YouTube videos on SCHD.

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Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

SCHD has outpaced SWVXX over the trailing twelve months, posting a 32.58% total return against 3.77%. The lead holds up over 10 years too: SCHD has compounded at 12.87% a year, against 2.25% for SWVXX. SWVXX has been the steadier holding, though — annualized volatility of 1.3% against 13.2% for SCHD. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Oct 2011Volatility Sharpe Sortino Max drawdown
SCHD25.58%32.58%15.55%9.62%12.87%13.54%13.2%0.761.11-16.1%
SWVXX2.06%3.77%4.61%3.59%2.25%1.52%1.3%-0.02-0.080.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2011” measures every fund from October 20, 2011 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

SCHD (Schwab U.S. Dividend Equity ETF) is an ETF, while SWVXX (Schwab Value Advantage Money Fund - Investor Shares) is a money market fund — they take fundamentally different approaches.

SWVXX offers the higher yield at 3.78% vs 2.95% for SCHD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SWVXX is the larger fund by assets ($249B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SCHD would generate roughly $24.58/month, while SWVXX would produce $31.50/month, at current distribution rates.

SCHD yield2.95%
SWVXX yield3.78%
Monthly diff on $10K$6.92

Cost & efficiency

SCHD charges a 0.06% expense ratio — roughly $60 over 10 years on $10,000 (simplified, not compounded). SWVXX has not published an expense ratio, so a direct cost comparison isn't possible.

SCHD ER0.06%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index, while SWVXX is a money market fund. Beta is 0.56 for SCHD and 0.003 for SWVXX, indicating SWVXX is less volatile relative to the market.

SCHD beta0.56
SWVXX beta0.003

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $106B in assets. SWVXX is managed by Schwab (launched 04/20/1992) with $249B in assets.

SCHD AUM$106B
SWVXX AUM$249B
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Frequently asked questions

What is the current distribution yield for SCHD and SWVXX?

SCHD currently distributes 2.95% and SWVXX 3.78%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SCHD or SWVXX better for dividend income?

It depends on your goals. SWVXX currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between SCHD and SWVXX?

SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index, while SWVXX (Schwab Value Advantage Money Fund - Investor Shares) is a money market fund. They are issued by Schwab and Schwab respectively.

Can I hold both SCHD and SWVXX?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, SCHD or SWVXX?

SCHD charges a 0.06% expense ratio. SWVXX has not published an expense ratio, so a direct fee comparison isn't possible.

How much income does $10,000 in SCHD vs SWVXX generate?

At current rates, $10,000 in SCHD would generate roughly $24.58 per month ($295.00 annually). The same in SWVXX would produce about $31.50 per month ($378.00 annually).

Which has performed better historically, SCHD or SWVXX?

SCHD has outpaced SWVXX over the trailing twelve months, posting a 32.58% total return against 3.77%. The lead holds up over 10 years too: SCHD has compounded at 12.87% a year, against 2.25% for SWVXX. SWVXX has been the steadier holding, though — annualized volatility of 1.3% against 13.2% for SCHD. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHD vs SWVXX — at a glance

Generated August 8, 2026.

Overview

SCHD is a large-cap dividend equity ETF that tracks 100 high-dividend-yielding U.S. stocks selected for consistent payouts and fundamental strength. SWVXX is a money market fund investing in short-term corporate and government debt. The core distinction: SCHD offers long-term equity growth plus dividends; SWVXX prioritizes capital preservation and current yield with minimal principal volatility.

How they differ

SCHD holds equities and targets total return through price appreciation and a 2.98% dividend yield; SWVXX holds money market instruments (commercial paper, CDs, corporate debt) and targets income with a 3.78% yield and a stable $1.00 net asset value. SCHD's beta of 0.58 indicates moderate equity risk; SWVXX's beta of 0.003 means it moves almost not at all with stock markets—it's a cash equivalent. SCHD charges 0.06% annually and requires stomach for principal fluctuation; SWVXX charges no explicit expense ratio and is designed to preserve capital while paying monthly interest. SCHD's $106B in assets serves long-term dividend investors; SWVXX's $248B reflects its use as a sweep vehicle for idle cash in brokerage accounts.

Who each is best for

SCHD: Fits investors seeking quarterly dividend income from a diversified basket of established dividend-payers, with a time horizon of multiple years and tolerance for moderate price swings tied to equity markets.

SWVXX: Fits investors who need to park cash temporarily or permanently while earning above-savings-account rates, and who prioritize liquidity and principal stability over capital appreciation.

Key risks to know

  • Dividend cut or suspension risk (SCHD): While the underlying index targets consistent dividend payers, economic downturns or company-specific stress can prompt dividend reductions, lowering total income relative to historical distributions.
  • Equity market correlation (SCHD): Even at 0.58 beta, SCHD will decline in value during broad stock market selloffs, creating a conflict between the income an investor expects and the unrealized loss on the principal they hold.
  • Interest rate sensitivity (SWVXX): Money market funds are less rate-sensitive than longer-duration bonds, but rising rates increase yields while falling rates compress them; the fund's income will fluctuate with the Federal Funds rate environment.
  • Credit risk in money market holdings (SWVXX): The fund invests in commercial paper and corporate debt; issuer defaults or downgrades are rare in prime money market funds but are not impossible, and any credit event could impair net asset value.
  • Opportunity cost (SWVXX): A 3.78% yield may feel attractive today, but if equity markets deliver strong returns, holding cash in SWVXX forgoes capital appreciation; conversely, if rates fall, the yield will decline.

Bottom line

SCHD suits investors who view dividends as part of a long-term equity strategy and accept price volatility; SWVXX suits those who need a liquid, income-bearing cash alternative with minimal risk. If you want growth plus income, SCHD's dividend yield and equity exposure stand out; if you need safety and steady monthly cash flow from spare capital, SWVXX's money market structure fits the job. Past performance does not guarantee future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

What the distribution rate really tells you Why a high yield isn't high income How to read a fund's stats T-bills vs. money market funds vs. CDs

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