ETF Comparison

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

A head-to-head comparison of Schwab U.S. Dividend Equity ETF and Vanguard Dividend Appreciation Index Fund ETF Shares covering yield, cost, risk, and income potential.

Data updated July 4, 2026

Schwab

ETFs34

Total AUM$574B

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

Schwab is known for offering low-cost, broad-based ETFs that serve both core portfolio holdings and specialized investment strategies. Their 33-fund lineup spans multiple asset classes including bonds, equities, international markets, digital assets, and factor-based strategies, with a notable emphasis on dividend-focused funds like SCHD alongside core index options. The issuer emphasizes accessibility for individual investors through competitive expense ratios and a diverse range of fund families designed to support various investment objectives.

See our curated list of related YouTube videos on SCHD.

See all Schwab ETFs

Vanguard

ETFs115

Total AUM$4484B

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

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VIG.

See all Vanguard ETFs

Side-by-side snapshot

	SCHD	VIG
Full name	Schwab U.S. Dividend Equity ETF	Vanguard Dividend Appreciation Index Fund ETF Shares
Issuer	Schwab	Vanguard
Last Close	$32.39 as of July 4, 2026	$238.62 as of July 4, 2026
Distribution yield	3.12%	1.67%
Distribution Safety Score	100	100
Expense ratio	0.06%	0.06%
AUM	$95.2B	$108B
Distribution frequency	Quarterly	Quarterly
Underlying index	Dow Jones U.S. Dividend 100 Index	Basket (Vanguard Dividend Appreciation ETF holdings)
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	0.59	0.77
Last dividend	$0.2525	$0.9990
Ex-dividend date	06/24/2026	06/26/2026

Income calculator

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

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — no signup required.

Build a sample portfolio Forecast income

Visual comparison

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 VIG over the trailing twelve months, posting a 23.16% total return against 17.19%. The picture flips over 10 years, though — VIG has compounded at 13.17% a year, ahead of SCHD at 12.50%. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Oct 2011	Volatility	Sharpe	Sortino	Max drawdown
SCHD	17.79%	23.16%	13.81%	8.69%	12.50%	13.16%	13.1%	0.65	0.94	-16.1%
VIG	8.59%	17.19%	15.57%	10.85%	13.17%	13.10%	12.2%	0.82	1.19	-15.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 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) and VIG (Vanguard Dividend Appreciation Index Fund ETF Shares) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.12% vs 1.67% for VIG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They track different benchmarks: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VIG tracks Basket (Vanguard Dividend Appreciation ETF holdings), which means their performance drivers differ.

VIG is the larger fund by assets ($108B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SCHD would generate roughly $26.00/month, while VIG would produce $13.92/month, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.12%

VIG yield1.67%

Monthly diff on $10K$12.08

Cost & efficiency

Over 10 years on $10,000, SCHD would cost approximately $60 in fees vs $60 for VIG (simplified, not compounded). Both charge the same expense ratio.

SCHD ER0.06%

VIG ER0.06%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index with a basket approach, while VIG tracks Basket (Vanguard Dividend Appreciation ETF holdings) with an index approach. Beta is 0.59 for SCHD and 0.77 for VIG, indicating SCHD is less volatile relative to the market.

SCHD beta0.59

VIG beta0.77

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $95.2B in assets. VIG is managed by Vanguard (launched 04/21/2006) with $108B in assets.

SCHD AUM$95.2B

VIG AUM$108B

Ready to act?

Open in Comparator Model in portfolio See pricing

Frequently asked questions

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.

What is the difference between SCHD and VIG?

SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index with a basket approach, while VIG (Vanguard Dividend Appreciation Index Fund ETF Shares) tracks Basket (Vanguard Dividend Appreciation ETF holdings) with an index approach. They are issued by Schwab and Vanguard respectively.

Can I hold both SCHD and VIG?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, SCHD or VIG?

SCHD and VIG both charge the same expense ratio of 0.06%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

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

At current rates, $10,000 in SCHD would generate roughly $26.00 per month ($312.00 annually). The same in VIG would produce about $13.92 per month ($167.00 annually).

Which has performed better historically, SCHD or VIG?

More comparisons to explore

People also compare SCHD with

People also compare VIG with

Popular comparisons

SCHD vs VIG — at a glance

Generated June 2026 from current fund data.

Overview

Both SCHD and VIG are low-cost dividend-focused ETFs tracking different indexes of U.S. large-cap stocks. The key difference: SCHD targets high-yielding dividend payers (using the Dow Jones U.S. Dividend 100 Index), while VIG pursues stocks with a documented history of raising dividends for at least a decade (S&P U.S. Dividend Growers Index). This distinction shapes their yield, volatility, and growth orientation.

How they differ

SCHD prioritizes current income, with a 3.16% distribution rate targeting established high-yield stocks. VIG emphasizes dividend growth, yielding just 1.42% but favoring companies with proven track records of raising payments over time. SCHD's lower beta of 0.59 reflects less volatility and more defensive positioning, while VIG's 0.77 beta suggests modestly higher market sensitivity. Both charge 0.06% in annual expenses, but SCHD's $95.2B in assets and VIG's $108B mean the choice between them hinges on income philosophy rather than cost or liquidity.

Who each is best for

SCHD: Fits investors seeking higher current dividend income and lower portfolio volatility, often those building a steady cash-flow stream from equity holdings or in or near retirement.

VIG: Designed for investors prioritizing long-term total return through dividend reinvestment and capital appreciation, where the rising-dividend profile appeals to those with longer time horizons and lower immediate income needs.

Key risks to know

* Yield sustainability risk in SCHD. The 3.16% distribution rate is more than twice VIG's, raising the question of whether underlying earnings growth can sustain payouts consistently; high-yield stocks may be valued less generously if growth slows.

* Value tilt in SCHD. High-yielding stocks often trade at lower multiples and may lag in rallies favoring growth. SCHD's lower beta partly reflects this defensive posture, which can drag returns in extended bull markets.

* Dividend cut vulnerability. VIG's selection criterion—10 years of rising dividends—offers some forward-looking stability; SCHD's high-yield focus does not explicitly vet for dividend growth, leaving it more exposed to cuts if company fundamentals deteriorate.

* Earnings growth constraints. VIG's dividend growers tend to be mature, profitable businesses; this maturity can limit overall capital appreciation relative to broader market indexes during expansions favoring younger, faster-growing companies.

Bottom line

If you want current income and lower volatility, SCHD's 3.16% yield and 0.59 beta appeal to cash-flow focused portfolios. If you prioritize total return and expect reinvested dividends to compound over time, VIG's dividend-growth framework and modestly higher beta fit longer holding periods. Past performance doesn't predict future results; both funds' ability to deliver hinges on corporate earnings trends and economic conditions over your investment horizon.

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