ETF Comparison

SCHD vs VIG: A Quality Screen, or Dividend Appreciation?

A head-to-head of Schwab U.S. Dividend Equity and Vanguard Dividend Appreciation covering how each picks stocks, cost, and cash.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

SCHDInvestors who want higher current income (3.26% vs 1.58% for VIG).
VIGInvestors who want simple, diversified core exposure in one low-cost fund.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

SCHD has outpaced VIG over the trailing twelve months, posting a 23.02% total return against 10.12%. The picture flips over 10 years, though — VIG has compounded at 13.00% a year, ahead of SCHD at 12.55%. 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.
Symbol	YTD cumulative	1Y cumulative	3Y annualized	5Y annualized	10Y annualized	Since Oct 2011	Volatility	Sharpe	Sortino	Max drawdown
SCHD	20.89%	23.02%	15.99%	9.29%	12.55%	13.12%	13.2%	0.79	1.15	-16.1%
VIG	7.84%	10.12%	16.94%	10.68%	13.00%	12.81%	12.2%	0.92	1.34	-15.0%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Oct 2011” measures every fund from October 20, 2011 — the start of shared available history — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	SCHD	VIG
Full name	Schwab U.S. Dividend Equity ETF	Vanguard Dividend Appreciation ETF
Issuer	Schwab	Vanguard
Underlying index	Dow Jones U.S. Dividend 100 Index	S&P U.S. Dividend Growers Index
Last Close	$32.72 as of October 2, 2026	$235.05 as of October 2, 2026
Distribution rate	3.26%	1.58%
Trailing 12-month yield	3.22%	1.55%
Distribution Safety Score™	100	100
Safety-Adjusted Yield	3.26%	1.58%
Expense ratio	0.06%	0.04%
AUM	$110B	$111B
Distribution frequency	Quarterly	Quarterly
Objective	Seeks 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 to track the performance of the S&P U.S. Dividend Growers Index, which consists of common stocks of companies that have a record of at least 10 years of increasing regular cash dividend payments.
Asset class	Equity	Equity
Inception date	10/20/2011	04/21/2006
Beta	0.56	0.74
Last dividend	$0.2665	$0.93
Ex-dividend date	09/23/2026	09/28/2026

Bottom lineChoose SCHD if you want higher current income (3.26% vs 1.58% for VIG). Choose VIG if you want simple, diversified core exposure in one low-cost fund.

Quality dividend screen versus dividend appreciation

SCHD screens US dividend payers for quality. VIG holds companies with a record of raising dividends. Screen is the split.

	SCHD	VIG
Screen	Quality dividend equity	Dividend appreciation
Expense ratio	0.06%	0.04%
Distribution rate	3.26%	1.58%
Fund size	$110B	$111B

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Schwab

ETFs33

Total AUM$612B

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.

See all Schwab ETFs

Vanguard

ETFs116

Total AUM$4676B

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VIG.

See all Vanguard ETFs

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Quick verdict

SCHD (Schwab U.S. Dividend Equity ETF) and VIG (Vanguard Dividend Appreciation ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.26% vs 1.58% for VIG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VIG is cheaper with an expense ratio of 0.04% compared to 0.06%.

They have different reference exposures: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VIG is linked to S&P U.S. Dividend Growers Index, which means their performance drivers differ.

VIG is the larger fund by assets ($111B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose SCHD

Schwab U.S. Dividend Equity ETF

Want higher current income — SCHD yields 3.26% vs 1.58% for VIG.
Want a quality-dividend tilt — screened payers rather than the broad index.
Prefer lower volatility — a beta of 0.6 vs 0.7 for VIG.

Choose VIG

Vanguard Dividend Appreciation ETF

Want simple, diversified core exposure as a portfolio building block.
Want to keep costs low — a 0.04% expense ratio vs 0.06% for SCHD.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

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Deep dive

Yield & income

On a $10,000 investment, SCHD would generate roughly $81.50 cash per distribution, while VIG would produce $39.50 cash per distribution, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.26%

VIG yield1.58%

Cash diff on $10K$42.00

Cost & efficiency

Over 10 years on $10,000, SCHD would cost approximately $60 in fees vs $40 for VIG (simplified, not compounded). The $20.00 difference may be offset by yield or performance.

SCHD ER0.06%

VIG ER0.04%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index, while VIG tracks S&P U.S. Dividend Growers Index. Beta is 0.56 for SCHD and 0.74 for VIG, making SCHD the less volatile of the two by this measure.

SCHD beta0.56

VIG beta0.74

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $110B in assets. VIG is managed by Vanguard (launched 04/21/2006) with $111B in assets.

SCHD AUM$110B

VIG AUM$111B

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Frequently asked questions

How do SCHD and VIG compare on a 10-year return?

SCHD (Schwab U.S. Dividend Equity ETF) screens US dividend payers for quality. VIG (Vanguard Dividend Appreciation ETF) holds companies with a record of raising dividends. The Total returns table on this page shows the annualized 10-year total return for each fund, with dividends reinvested. Cost is 0.06% versus 0.04%. Distributions are 3.26% and 1.58% as of October 2026. That column, not a one-date yield, is the 10-year comparison.

What is the current distribution rate for SCHD and VIG?

SCHD currently distributes 3.26% and VIG 1.58%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SCHD or VIG better for dividend income?

It depends on your goals. SCHD 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.

Can I hold both SCHD and VIG?

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.

Is SCHD or VIG safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: SCHD scores 100, VIG scores 100. Neither has a clear safety edge on that measure. SCHD has also shown lower price volatility (beta 0.56 vs 0.74 for VIG). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHD or VIG?

SCHD has an expense ratio of 0.06% while VIG charges 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in SCHD would generate roughly $81.50 cash per distribution ($326.00 annually). The same in VIG would produce about $39.50 cash per distribution ($158.00 annually).

Which has performed better historically, SCHD or VIG?

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Dividend dates and history

SCHD vs VIG — at a glance

Generated October 3, 2026.

Overview

SCHD and VIG are large-cap equity ETFs that track different philosophies of dividend investing. SCHD follows the Dow Jones U.S. Dividend 100 Index, prioritizing current yield from high-dividend-paying stocks selected for relative financial strength. VIG tracks the S&P U.S. Dividend Growers Index, focusing on companies with at least 10 years of consecutive dividend increases. The key distinction: SCHD emphasizes income now, while VIG emphasizes dividend growth and sustainability.

How they differ

The strategy difference shapes everything else. SCHD's 3.26% distribution rate more than doubles VIG's 1.58%, reflecting its tilt toward higher-yielding names. This yield gap comes with a tradeoff: SCHD's beta of 0.56 suggests lower volatility and more defensive positioning, while VIG's 0.74 beta indicates closer alignment with broad large-cap movement. Both charge minimal fees—0.06% for SCHD versus 0.04% for VIG—and hold roughly equivalent asset bases of $110B and $111B respectively. The income pattern also differs slightly: SCHD's 100-stock basket concentrates exposure more heavily on dividend payers, whereas VIG's broader growers index dilutes that concentration.

Who each is best for

SCHD: Fits investors seeking meaningful current income from dividend stocks and comfortable with a more defensive equity posture that tends to lag in rising-market rallies.

VIG: Fits investors prioritizing long-term capital appreciation alongside moderate income, and who believe dividend-growth discipline signals better business quality and lower capital-erosion risk over time.

Key risks to know

Sector concentration: SCHD's emphasis on high current yield tilts heavily toward financials, utilities, and REITs—sectors that can underperform during growth rallies or face sector-specific headwinds. VIG's growers bias skews differently, toward industrials and healthcare, creating different concentration vulnerabilities.

Dividend sustainability: SCHD's higher yield increases the odds that some holdings may struggle to maintain or grow their payouts during economic slowdowns, whereas VIG's 10-year-growth filter tends to surface more entrenched dividend commitments.

Market-cycle sensitivity: SCHD's lower beta suggests it will lag in bull markets but cushion downturns; VIG's closer-to-market beta means it participates more fully in both directions. Investors in SCHD should not expect to capture broad equity gains during risk-on periods.

Dividend-growth potential: VIG's universe is explicitly screened for companies increasing dividends; SCHD makes no such requirement, meaning yield may depend more on share-price weakness than on fundamental dividend growth.

Bottom line

If you want higher current income and lower near-term volatility, SCHD's 3.26% yield and defensive beta stand out. If you prioritize long-term appreciation and believe dividend-growth discipline reflects healthier businesses, VIG's lower yield and market-closer positioning align with that view. Both charge nearly identical fees and manage similar asset bases, so the choice hinges on your income requirement and market-cycle outlook. Past performance does not predict future results.

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

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These comparisons follow the Dividend Vision methodology.