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ETF Comparison

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

A head-to-head comparison of Schwab U.S. Dividend Equity ETF and Vanguard Morningstar Total Stock Market ETF covering yield, cost, risk, and income potential.

Updated October 8, 2026

How these figures are calculated: methodology.

Best for

  • SCHDInvestors who want higher current income (3.22% vs 1.01% for VTI).
  • VTIInvestors who want the broadest one-fund diversification at rock-bottom cost.

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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

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 VTI over the trailing twelve months, posting a 25.82% total return against 16.42%. The picture flips over 10 years, though — VTI has compounded at 14.96% a year, ahead of SCHD at 12.69%. 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
SCHD22.08%25.82%16.24%9.27%12.69%13.18%13.2%0.811.18-16.1%
VTI14.54%16.42%22.79%12.57%14.96%14.86%15.4%1.051.53-19.3%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 9, 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.
MetricSCHDVTI
Full nameSchwab U.S. Dividend Equity ETFVanguard Morningstar Total Stock Market ETF
IssuerSchwabVanguard
Underlying indexDow Jones U.S. Dividend 100 IndexMorningstar US Total Market Index
Last Close$33.15 as of October 8, 2026$379.56 as of October 8, 2026
Distribution rate3.22%1.01%
Trailing 12-month yield3.18%1.04%
Distribution Safety Score™ 100100
Safety-Adjusted Yield 3.22%1.01%
Expense ratio0.06%0.03%
AUM$109B$696B
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.Seeks to track the Morningstar US Total Market Index.
Asset classEquityEquity
Inception date10/20/201105/24/2001
Beta0.561.0379
Last dividend$0.2665$0.9555
Ex-dividend date09/23/202609/28/2026

Bottom lineChoose SCHD if you want higher current income (3.22% vs 1.01% for VTI). Choose VTI if you want the broadest one-fund diversification at rock-bottom cost.

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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$609B

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$4668B

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 VTI.

See all Vanguard ETFs

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Quick verdict

SCHD (Schwab U.S. Dividend Equity ETF) and VTI (Vanguard Morningstar Total Stock Market ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.22% vs 1.01% for VTI. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VTI 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 VTI is linked to Morningstar US Total Market Index, which means their performance drivers differ.

VTI is the larger fund by assets ($696B), 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 3.22% vs 1.01% for VTI.
  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Prefer lower volatility — a beta of 0.6 vs 1.0 for VTI.

Choose VTI

Vanguard Morningstar Total Stock Market ETF

  • Want the broadest single-fund diversification across the entire market.
  • 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 $80.50 cash per distribution, while VTI would produce $25.25 cash per distribution, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.22%
VTI yield1.01%
Cash diff on $10K$55.25

Cost & efficiency

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

SCHD ER0.06%
VTI ER0.03%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index, while VTI tracks Morningstar US Total Market Index. Beta is 0.56 for SCHD and 1.0379 for VTI, making SCHD the less volatile of the two by this measure.

SCHD beta0.56
VTI beta1.0379

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $109B in assets. VTI is managed by Vanguard (launched 05/24/2001) with $696B in assets.

SCHD AUM$109B
VTI AUM$696B
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Frequently asked questions

What is the current distribution rate for SCHD and VTI?

SCHD currently distributes 3.22% and VTI 1.01%, 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 VTI 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 VTI?

SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index, while VTI (Vanguard Morningstar Total Stock Market ETF) tracks Morningstar US Total Market Index. They are issued by Schwab and Vanguard respectively.

Can I hold both SCHD and VTI?

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 VTI 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, VTI scores 100. Neither has a clear safety edge on that measure. SCHD has also shown lower price volatility (beta 0.56 vs 1.04 for VTI). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHD or VTI?

SCHD has an expense ratio of 0.06% while VTI 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 VTI generate?

At current rates, $10,000 in SCHD would generate roughly $80.50 cash per distribution ($322.00 annually). The same in VTI would produce about $25.25 cash per distribution ($101.00 annually).

Which has performed better historically, SCHD or VTI?

SCHD has outpaced VTI over the trailing twelve months, posting a 25.82% total return against 16.42%. The picture flips over 10 years, though — VTI has compounded at 14.96% a year, ahead of SCHD at 12.69%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHD vs VTI — at a glance

Generated October 3, 2026.

Overview

SCHD and VTI are both broad U.S. equity ETFs, but they pursue fundamentally different strategies. SCHD tracks a curated 100-stock index of high-dividend payers with consistent dividend history and financial strength, while VTI seeks total return exposure to the entire U.S. stock market—large, mid, and small cap—via the Morningstar US Total Market Index. The key distinction is income focus versus market completeness.

How they differ

SCHD's strategy screens for dividend consistency and financial quality, narrowing the market to 100 dividend aristocrats and payers, whereas VTI holds thousands of stocks across all market capitalizations with no income filter. SCHD's beta of 0.56 reflects lower volatility than the broad market—its dividend-focused, financially stronger constituents tend to move less than the overall market's 1.0379 beta. In costs, VTI edges ahead with an expense ratio of 0.03% versus SCHD's 0.06%, though the 0.03% difference is negligible in practice. Size differs sharply: VTI manages $696B in assets versus SCHD's $109B, making VTI one of the largest equity ETFs globally.

Who each is best for

SCHD: Fits investors seeking higher current income from U.S. equities without sacrificing quality fundamentals, or those who prefer lower portfolio volatility alongside their dividend stream. Designed for long-term accumulators who want to reinvest rising dividends from financially sound, dividend-focused companies.

VTI: Fits investors who want a true market-weight exposure to the entire U.S. stock market, prioritizing completeness and simplicity over yield. Designed for buy-and-hold portfolio cores where the goal is total return (capital appreciation plus modest income) with minimal maintenance.

Key risks to know

  • Dividend concentration and yield sustainability: SCHD's high distribution rate reflects selection for current income payers; if economic weakness reduces corporate profits, dividend cuts at these companies could compress both yield and price faster than the broader market.
  • Market completeness gap: SCHD's 100-stock constraint excludes mid-cap and small-cap exposure, meaning it will underperform during periods when smaller or non-dividend-paying growth stocks outperform.
  • Lower diversification: SCHD's screening for dividend consistency and financial strength narrows the opportunity set, which may reduce idiosyncratic risk but increases concentration relative to full-market VTI.
  • Valuation gap: Dividend-paying, financially strong stocks often command premium valuations in bull markets; SCHD may underperform if the market rotates toward lower-quality or unprofitable growth names.

Bottom line

If steady quarterly income from quality dividend stocks is your priority, SCHD's 3.22% yield and lower volatility stand out; if you want complete U.S. market exposure at the lowest cost, VTI's $696B asset base and 0.03% ratio make it the simpler default. Both are excellent core holdings, but they answer different questions—income versus total return, concentrated quality versus market-weight diversity. 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.