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 Total Stock Market ETF 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 VTI.

See all Vanguard ETFs

Side-by-side snapshot

	SCHD	VTI
Full name	Schwab U.S. Dividend Equity ETF	Vanguard Total Stock Market ETF
Issuer	Schwab	Vanguard
Last Close	$32.39 as of July 4, 2026	$368.76 as of July 4, 2026
Distribution yield	3.12%	1.13%
Distribution Safety Score	100	100
Expense ratio	0.06%	0.03%
AUM	$95.2B	$654B
Distribution frequency	Quarterly	Quarterly
Underlying index	Dow Jones U.S. Dividend 100 Index	CRSP US Total Market Index
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.	Track the CRSP US Total Market Index, representing the broad U.S. equity market.
Asset class	Equity	Equity
Inception date	10/20/2011	05/24/2001
Beta	0.59	1.0379
Last dividend	$0.2525	$1.0437
Ex-dividend date	06/24/2026	06/26/2026

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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 VTI over the trailing twelve months, posting a 23.16% total return against 22.40%. The picture flips over 10 years, though — VTI has compounded at 14.94% 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%
VTI	9.99%	22.40%	20.09%	11.97%	14.94%	14.84%	15.4%	0.90	1.30	-19.3%

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 VTI (Vanguard Total Stock Market ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.12% vs 1.13% 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 track different benchmarks: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VTI tracks CRSP US Total Market Index, which means their performance drivers differ.

VTI is the larger fund by assets ($654B), 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 VTI would produce $9.42/month, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.12%

VTI yield1.13%

Monthly diff on $10K$16.58

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 with a basket approach, while VTI tracks CRSP US Total Market Index with a basket approach. Beta is 0.59 for SCHD and 1.0379 for VTI, indicating SCHD is less volatile relative to the market.

SCHD beta0.59

VTI beta1.0379

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $95.2B in assets. VTI is managed by Vanguard (launched 05/24/2001) with $654B in assets.

SCHD AUM$95.2B

VTI AUM$654B

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Frequently asked questions

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 with a basket approach, while VTI (Vanguard Total Stock Market ETF) tracks CRSP US Total Market Index with a basket approach. They are issued by Schwab and Vanguard respectively.

Can I hold both SCHD and VTI?

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 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 $26.00 per month ($312.00 annually). The same in VTI would produce about $9.42 per month ($113.00 annually).

Which has performed better historically, SCHD or VTI?

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SCHD vs VTI — at a glance

Generated June 2026 from current fund data.

Overview

SCHD and VTI are both broad U.S. equity ETFs, but they serve different income and market-exposure goals. SCHD targets high-dividend-yielding large-cap stocks with a consistent payout history, while VTI tracks the entire U.S. stock market—large, mid, and small cap combined. The key distinction: SCHD emphasizes income and defensive characteristics; VTI emphasizes total market breadth and capital appreciation.

How they differ

The biggest difference is composition: SCHD holds only 100 large-cap dividend-payers selected for yield and financial strength, while VTI holds the entire U.S. market (roughly 3,500+ stocks across all capitalizations). This shows up immediately in yield—SCHD distributes 3.16% annually versus VTI's 1.10%. SCHD's beta of 0.59 reflects its tilt toward lower-volatility dividend stocks; VTI's beta of 1.0379 tracks the broad market's swings. On fees, VTI has a slight edge at 0.03% versus SCHD's 0.06%, though both are cheap. VTI dwarfs SCHD in size at $654B AUM versus $95.2B, which matters for liquidity and fund stability.

Who each is best for

SCHD: Fits investors seeking higher current income from equity holdings while accepting lower overall market exposure and a tilt toward lower-volatility large-cap names. Works well for those building a diversified portfolio where dividend income is a material goal.

VTI: Designed for investors seeking broad, cap-weighted U.S. market exposure with minimal costs and no sector or dividend bias. Suits those who prioritize total return over current income and want to own the market rather than a slice of it.

Key risks to know

Dividend concentration risk. SCHD's 100-stock universe and explicit dividend-yield selection bias means it overweights mature, slower-growth sectors (utilities, energy, REITs, financials) and underweights growth and technology. A prolonged rotation away from dividend-payers could underperform significantly.

Beta and downside capture. SCHD's 0.59 beta means it typically falls less in bear markets but also rises less in bull runs. Investors expecting a strong equity rally may lag materially versus VTI's full-market beta.

Yield sustainability and NAV risk. A 3.16% distribution rate on large-cap stocks relies on current earnings and payout willingness. If dividend cuts accelerate or high-yielding sectors underperform, the distribution may compress, potentially eroding NAV if fund flows follow.

Sector concentration. SCHD's tilt toward dividend stocks naturally concentrates in financials, utilities, real estate, and energy—sectors vulnerable to specific regulatory, rate, and commodity shocks that won't affect VTI as heavily.

Bottom line

If you prioritize current income and are comfortable with a lower-volatility, dividend-focused tilt, SCHD's 3.16% yield and defensive characteristics stand out. If you want broad market exposure with minimal cost and no income requirement, VTI's total-market approach and 0.03% fee are hard to beat. Past performance does not guarantee future results; dividend yields and market leadership shift over time.

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