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Dividend Vision

ETF Comparison

SCHD vs VOO: A Dividend Screen, or Broad Large Caps?

A head-to-head of Schwab's U.S. Dividend Equity ETF and Vanguard's S&P 500 ETF covering the screen, cost, and what holding both already shares.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • SCHDInvestors who want higher current income (3.26% vs 1.03% for VOO).
  • VOOInvestors 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 VOO over the trailing twelve months, posting a 23.02% total return against 16.45%. The picture flips over 10 years, though — VOO has compounded at 15.46% 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Oct 2011Volatility Sharpe Sortino Max drawdown
SCHD20.89%23.02%15.99%9.29%12.55%13.12%13.2%0.791.15-16.1%
VOO13.59%16.45%23.23%13.71%15.46%15.21%14.8%1.111.61-18.7%

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.
MetricSCHDVOO
Full nameSchwab U.S. Dividend Equity ETFVanguard S&P 500 ETF
IssuerSchwabVanguard
Underlying indexDow Jones U.S. Dividend 100 IndexS&P 500 Index
Last Close$32.72 as of October 2, 2026$707.54 as of October 2, 2026
Distribution rate3.26%1.03%
Trailing 12-month yield3.22%1.05%
Distribution Safety Score™ 100100
Safety-Adjusted Yield 3.26%1.03%
Expense ratio0.06%0.03%
AUM$110B$1041B
Distribution frequencyQuarterlyQuarterly
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.Track the performance of the S&P 500 Index, representing 500 of the largest U.S. companies.
Asset classEquityEquity
Inception date10/20/201109/07/2010
Beta0.561.0
Last dividend$0.2665$1.8226
Ex-dividend date09/23/202609/28/2026

Bottom lineChoose SCHD if you want higher current income (3.26% vs 1.03% for VOO). Choose VOO if you want simple, diversified core exposure in one low-cost fund.

SCHD vs VOO: dividend quality or the S&P 500?

VOO is the index. SCHD is a quality-dividend screen. Holding both doubles large-cap names already inside VOO.

SCHDVOO
What it ownsQuality US dividend payersS&P 500 Index
Expense ratio0.06%0.03%
Distribution rate3.26%1.03%
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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 VOO.

See all Vanguard ETFs

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Quick verdict

SCHD (Schwab U.S. Dividend Equity ETF) and VOO (Vanguard S&P 500 ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.26% vs 1.03% for VOO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VOO is cheaper with an expense ratio of 0.03% compared to 0.06%.

They have different reference exposures: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VOO is linked to S&P 500 Index, which means their performance drivers differ.

VOO is the larger fund by assets ($1041B), 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 1.03% for VOO.
  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Prefer lower volatility — a beta of 0.6 vs 1.0 for VOO.

Choose VOO

Vanguard S&P 500 ETF

  • Want simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.03% 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.

Deep dive

Yield & income

On a $10,000 investment, SCHD would generate roughly $81.50 cash per distribution, while VOO would produce $25.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.26%
VOO yield1.03%
Cash diff on $10K$55.75

Cost & efficiency

Over 10 years on $10,000, SCHD would cost approximately $60 in fees vs $30 for VOO (simplified, not compounded). The $30.00 difference may be offset by yield or performance.

SCHD ER0.06%
VOO ER0.03%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index, while VOO tracks S&P 500 Index with a large cap approach. Beta is 0.56 for SCHD and 1.0 for VOO, making SCHD the less volatile of the two by this measure.

SCHD beta0.56
VOO beta1.0

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $110B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1041B in assets.

SCHD AUM$110B
VOO AUM$1041B
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Frequently asked questions

What is the difference between SCHD and VOO?

VOO (Vanguard S&P 500 ETF) tracks S&P 500 Index and keeps the whole move, paying 1.03% quarterly. SCHD (Schwab U.S. Dividend Equity ETF) screens US dividend payers for quality and distributes 3.26% quarterly. Cost is 0.06% versus 0.03%. Holding both doubles large-cap names already inside VOO. Figures as of October 2026.

What is the current distribution rate for SCHD and VOO?

SCHD currently distributes 3.26% and VOO 1.03%, 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 VOO 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 VOO?

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 VOO 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, VOO scores 100. Neither has a clear safety edge on that measure. SCHD has also shown lower price volatility (beta 0.56 vs 1.00 for VOO). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHD or VOO?

SCHD has an expense ratio of 0.06% while VOO charges 0.03%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in SCHD would generate roughly $81.50 cash per distribution ($326.00 annually). The same in VOO would produce about $25.75 cash per distribution ($103.00 annually).

Which has performed better historically, SCHD or VOO?

SCHD has outpaced VOO over the trailing twelve months, posting a 23.02% total return against 16.45%. The picture flips over 10 years, though — VOO has compounded at 15.46% a year, ahead of SCHD at 12.55%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHD vs VOO — at a glance

Generated October 3, 2026.

Overview

SCHD and VOO are both large-cap U.S. equity ETFs, but they track fundamentally different indexes with distinct dividend profiles. SCHD targets the 100 highest-yielding U.S. stocks with consistent dividend histories, using quality filters, while VOO holds 500 broad-market large-cap companies with less emphasis on income. The difference shows in yield: SCHD's 3.26% distribution rate versus VOO's 1.03%.

How they differ

SCHD's core strategy filters for dividend payers with financial strength, whereas VOO simply tracks the S&P 500 without dividend or quality screens—a fundamental difference in construction. SCHD yields 3.26%, more than triple VOO's 1.03%, because it holds a concentrated 100-stock portfolio of high-payers. The expense ratio gap is small: 0.06% versus 0.03% basis points in VOO's favor, a difference of 0.03%. SCHD has a 0.56 beta, reflecting lower volatility than the broad market's 1.0 (VOO's 1.0), which fits its income-focused tilt toward less cyclical sectors. VOO's $1041B in assets dwarfs SCHD's $110B, but both have substantial scale.

Who each is best for

  • SCHD: Fits investors seeking regular quarterly income from large-cap U.S. stocks and willing to accept a narrower, dividend-screened portfolio in exchange for a higher current yield and historically lower volatility.
  • VOO: Fits investors who want broad-market large-cap exposure with minimal cost, care less about current income, and prefer the diversification of 500 holdings over a focused dividend strategy.

Key risks to know

  • Concentration and sector tilt: SCHD's 100-stock universe excludes many S&P 500 companies, leaving it overweight in dividend-stable sectors (utilities, energy, financials) and underweight in growth-heavy areas. If high-growth or non-dividend-paying large caps outperform, SCHD may lag.
  • Dividend sustainability during stress: The 100-stock screen selects for consistent payers, but dividend cuts during recessions can reduce SCHD's income, especially if cyclical sectors face earnings pressure.
  • Yield compression risk: SCHD's 3.26% distribution rate leaves limited room for growth if equity markets rise without earnings acceleration; investors may see price appreciation tempered by yield-driven selection bias.
  • Valuation drag: A quality + dividend filter often results in a portfolio of stocks trading at premium valuations relative to the broader market, which can underperform in mean-reversion periods.
  • Market-tracking precision: VOO's vastly larger AUM provides tighter passive tracking, while SCHD's active screening (though rules-based) introduces slight tracking error versus its index and may not perfectly match the Dow Jones Dividend 100 in all market conditions.

Bottom line

If you prioritize current income and are comfortable with a dividend-focused tilt away from broad-market exposure, SCHD's 3.26% yield and 0.56 beta may fit your cash-flow needs. If you want maximum diversification across all 500 S&P 500 constituents with minimal cost and no income requirement, VOO's $1041B asset base and 0.03% expense ratio deliver pure passive tracking. 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.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

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These comparisons follow the Dividend Vision methodology.