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ETF Comparison

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

A head-to-head comparison of Schwab U.S. Dividend Equity ETF and Vanguard S&P 500 ETF covering yield, cost, risk, and income potential.

Data updated July 21, 2026

Schwab
ETFs34
Total AUM$586B

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
ETFs116
Total AUM$4488B

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 VOO.

See all Vanguard ETFs

Side-by-side snapshot

SCHDVOO
Full nameSchwab U.S. Dividend Equity ETFVanguard S&P 500 ETF
IssuerSchwabVanguard
Last Close$32.75 as of July 21, 2026$682.21 as of July 21, 2026
Distribution yield3.08%1.15%
Distribution Safety Score™ 100100
Expense ratio0.06%0.03%
AUM$101B$985B
Distribution frequencyQuarterlyQuarterly
Underlying indexDow Jones U.S. Dividend 100 IndexS&P 500 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.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
Beta0.581.0
Last dividend$0.2525$1.9622
Ex-dividend date06/24/202606/26/2026

Bottom lineChoose SCHD if you want higher current income (3.08% vs 1.15% for VOO). Choose VOO if you want simple, diversified core exposure in one low-cost fund.

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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 VOO over the trailing twelve months, posting a 25.98% total return against 19.43%. The picture flips over 10 years, though — VOO has compounded at 15.03% a year, ahead of SCHD at 12.39%. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Oct 2011Volatility Sharpe Sortino Max drawdown
SCHD20.05%25.98%13.62%9.60%12.39%13.26%13.1%0.640.92-16.1%
VOO9.24%19.43%19.52%13.38%15.03%15.13%14.9%0.901.30-18.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 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 VOO (Vanguard S&P 500 ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.08% vs 1.15% 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 track different benchmarks: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VOO tracks S&P 500 Index, which means their performance drivers differ.

VOO is the larger fund by assets ($985B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose SCHD

Schwab U.S. Dividend Equity ETF

  • Want higher current income — SCHD yields 3.08% vs 1.15% 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 $25.67/month, while VOO would produce $9.58/month, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.08%
VOO yield1.15%
Monthly diff on $10K$16.08

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 0.58 for SCHD and 1.0 for VOO, indicating SCHD is less volatile relative to the market.

SCHD beta0.58
VOO beta1.0

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $101B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $985B in assets.

SCHD AUM$101B
VOO AUM$985B
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Frequently asked questions

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.

What is the difference between SCHD and VOO?

SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index, while VOO (Vanguard S&P 500 ETF) tracks S&P 500 Index with a large cap approach. They are issued by Schwab and Vanguard respectively.

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.

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 $25.67 per month ($308.00 annually). The same in VOO would produce about $9.58 per month ($115.00 annually).

Which has performed better historically, SCHD or VOO?

SCHD has outpaced VOO over the trailing twelve months, posting a 25.98% total return against 19.43%. The picture flips over 10 years, though — VOO has compounded at 15.03% a year, ahead of SCHD at 12.39%. 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 July 2026 from current fund data.

Overview

SCHD and VOO are both large-cap U.S. equity ETFs tracking different underlying indexes with materially different income strategies. SCHD targets high-dividend-yielding stocks with consistent payout histories from the Dow Jones U.S. Dividend 100 Index, while VOO tracks the broad S&P 500. The key distinction: SCHD is a dividend-focused strategy with a 3.12% distribution rate; VOO is a market-cap-weighted total-return play with a 1.13% yield.

How they differ

SCHD's index selects for dividend payers with financial strength and consistency, whereas VOO holds 500 large-cap stocks weighted by market capitalization with no dividend screen. The most obvious difference shows in yield: SCHD distributes 3.12% annually against VOO's 1.13%, a result of SCHD's explicit dividend filter rather than higher underlying earnings growth. Second, SCHD carries a beta of 0.58, meaning it has historically moved about 58% as much as the market in both directions, while VOO's beta of 1.0 tracks the broad market's volatility by design. Third, SCHD's expense ratio is 0.06% versus VOO's 0.03%—a small gap, but VOO's $1033B in AUM dwarfs SCHD's $95.2B, reflecting VOO's status as the industry's largest S&P 500 tracker.

Who each is best for

SCHD: Fits investors seeking current dividend income from a diversified basket of financially stable dividend payers, willing to accept lower overall market participation for lower volatility and higher cash yield.

VOO: Fits investors seeking core broad-market U.S. equity exposure with minimal cost and full market-like returns, prioritizing long-term capital appreciation over current income.

Key risks to know

  • Dividend-screen concentration: SCHD's filter for high-dividend payers concentrates exposure in mature, lower-growth sectors (utilities, real estate, energy, consumer staples). If growth equities outperform, SCHD may lag VOO significantly—a structural underperformance risk, not a temporary market cycle.
  • Beta mismatch in market rallies: SCHD's 0.58 beta means it captures only about half the upside during strong bull markets. An investor comparing annual returns over a multi-year bull run may find the income advantage eroded by capital appreciation forgone.
  • Dividend cut risk: SCHD's constituents are selected partly on historical consistency, but the Dividend 100 Index can experience turnover if companies reduce or suspend dividends during downturns. A yield based on current distributions may face pressure if earnings decline.
  • Valuation risk in dividend stocks: High-dividend equities often trade at compressed valuations, meaning multiple expansion may be limited. Mean-reversion or sector underperformance could constrain total returns.

Bottom line

SCHD trades market-matching breadth for higher current income and lower volatility; VOO trades current yield for full market participation and lower fees. If you prioritize quarterly cash flow and can accept underperformance during growth-led rallies, SCHD's 3.12% yield and 0.58 beta offer a different risk-return profile. If you want the broadest U.S. equity exposure at the lowest cost, VOO's market-matching approach and $1033B scale speak for themselves. 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.

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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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