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Security Comparison

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

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

Data updated September 22, 2026

Best for

  • SCHDInvestors who want higher current income (2.99% vs 1.02% for VTSAX).
  • VTSAXInvestors who want the broadest one-fund diversification at rock-bottom cost.

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.

SCHD has outpaced VTSAX over the trailing twelve months, posting a 28.36% total return against 16.86%. The picture flips over 10 years, though — VTSAX has compounded at 15.03% a year, ahead of SCHD at 12.84%. 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.
SymbolYTD1Y3Y5Y10YSince Oct 2011Volatility Sharpe Sortino Max drawdown
SCHD23.68%28.36%16.26%10.26%12.84%13.32%13.2%0.811.18-16.1%
VTSAX13.96%16.86%22.64%12.66%15.03%14.87%15.3%1.051.53-19.4%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 22, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “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.
MetricSCHDVTSAX
Full nameSchwab U.S. Dividend Equity ETFVanguard Total Stock Market Index Fund Admiral Shares
IssuerSchwabVanguard
Underlying indexDow Jones U.S. Dividend 100 IndexUS Total Market
Last Close$33.74 as of September 22, 2026$185.49 as of September 21, 2026
Distribution rate2.99%1.02%
Distribution Safety Score™ 100100
Safety-Adjusted Yield 2.99%1.02%
Expense ratio0.06%0.04%
AUM$113B$1000B
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 performance of the CRSP US Total Market Index.
Asset classEquityEquity
Inception date10/20/2011—
Beta0.561.02
Last dividend$0.2525$0.504
Ex-dividend date06/24/202606/26/2026

Bottom lineChoose SCHD if you want higher current income (2.99% vs 1.02% for VTSAX). Choose VTSAX 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 security at current yields.

Schwab
ETFs33
Total AUM$623B

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

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Quick verdict

SCHD (Schwab U.S. Dividend Equity ETF) is an ETF, while VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) is a mutual fund — their trading structures differ.

SCHD offers the higher yield at 2.99% vs 1.02% for VTSAX. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VTSAX is cheaper with an expense ratio of 0.04% compared to 0.06%.

They have different reference exposures: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VTSAX is linked to US Total Market, which means their performance drivers differ.

VTSAX is the larger fund by assets ($1000B), 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 2.99% vs 1.02% for VTSAX.
  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Prefer lower volatility — a beta of 0.6 vs 1.0 for VTSAX.

Choose VTSAX

Vanguard Total Stock Market Index Fund Admiral Shares

  • Want the broadest single-fund diversification across the entire market.
  • Want to keep costs low — a 0.04% 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 $74.75 cash per distribution, while VTSAX would produce $25.50 cash per distribution, at current distribution rates. Both pay quarterly distributions.

SCHD yield2.99%
VTSAX yield1.02%
Cash diff on $10K$49.25

Cost & efficiency

Over 10 years on $10,000, SCHD would cost approximately $60 in fees vs $40 for VTSAX (simplified, not compounded). The $20.00 difference may be offset by yield or performance.

SCHD ER0.06%
VTSAX ER0.04%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index, while VTSAX tracks US Total Market with a mutual fund approach. Beta is 0.56 for SCHD and 1.02 for VTSAX, making SCHD the less volatile of the two by this measure.

SCHD beta0.56
VTSAX beta1.02

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $113B in assets. VTSAX is managed by Vanguard with $1000B in assets.

SCHD AUM$113B
VTSAX AUM$1000B
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Frequently asked questions

What is the current distribution rate for SCHD and VTSAX?

SCHD currently distributes 2.99% and VTSAX 1.02%, based on fund data updated September 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 VTSAX 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 VTSAX?

SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index, while VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) tracks US Total Market with a mutual fund approach. They are issued by Schwab and Vanguard respectively.

Can I hold both SCHD and VTSAX?

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 VTSAX 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, VTSAX scores 100. Neither has a clear safety edge on that measure. SCHD has also shown lower price volatility (beta 0.56 vs 1.02 for VTSAX). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHD or VTSAX?

SCHD has an expense ratio of 0.06% while VTSAX charges 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in SCHD would generate roughly $74.75 cash per distribution ($299.00 annually). The same in VTSAX would produce about $25.50 cash per distribution ($102.00 annually).

Which has performed better historically, SCHD or VTSAX?

SCHD has outpaced VTSAX over the trailing twelve months, posting a 28.36% total return against 16.86%. The picture flips over 10 years, though — VTSAX has compounded at 15.03% a year, ahead of SCHD at 12.84%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHD vs VTSAX — at a glance

Generated September 19, 2026.

Overview

SCHD and VTSAX represent two fundamentally different approaches to U.S. equity exposure through low-cost index strategies. SCHD is an ETF that tracks the Dow Jones U.S. Dividend 100 Index, concentrating on 100 large-cap stocks with strong dividend histories and financial strength. VTSAX is a mutual fund that tracks the broad CRSP U.S. Total Market Index, capturing roughly 3,500 stocks across the entire market capitalization spectrum. The key distinction: SCHD tilts toward dividend payers and quality metrics, while VTSAX offers undiluted total-market exposure.

How they differ

The biggest structural difference is scope. VTSAX holds the entire U.S. stock market; SCHD holds a curated 100-stock subset selected for dividend consistency and financial ratios. That tilt shows in yield: SCHD distributes 2.99%, more than triple VTSAX's 1.02%, because the portfolio deliberately overweights dividend-paying companies. The market beta tells the story—SCHD's 0.56 is well below the market's 1.0, while VTSAX's 1.02 moves in line with broad equities.

Who each is best for

  • SCHD: Fits investors who want current income from equities and are comfortable with a narrower, quality-tilted portfolio. The dividend focus and lower beta appeal to those seeking to reduce portfolio volatility while capturing yield above the market average.
  • VTSAX: Fits investors seeking maximum diversification and true market-weight exposure. The broad holdings and total-market philosophy suit buy-and-hold allocators who prioritize simplicity and acceptance of the market's full return distribution, including lower-yielding growth and small-cap companies.

Key risks to know

  • Concentration and style drift: SCHD's 100-stock focus introduces concentration risk relative to the full market. If dividend payers or financially strong large caps underperform, SCHD's narrower mandate offers less cushion than VTSAX's 3,500+ holdings. Past dividend records also don't guarantee future payouts if company fundamentals deteriorate.
  • Dividend sustainability in downturns: SCHD's higher yield (2.99% vs. 1.02%) is partly attributable to its dividend focus, but during recessions or market stress, dividend cuts can be sharper in a concentrated dividend portfolio than in the broader market.
  • Lower equity beta: SCHD's 0.56 suggests it will capture less upside in strong bull markets. Investors chasing SCHD for income may miss significant equity gains available in a full-market portfolio during extended rallies.
  • Tracking and rebalancing divergence: SCHD's index-selection process (filtering by dividend history and financial strength) creates periodic rebalancing; VTSAX's capitalization-weight approach is more passive and typically has lower turnover.

Bottom line

If you prioritize steady current income and are willing to accept concentrated exposure to dividend-paying blue chips, SCHD's 2.99% yield and lower volatility may appeal. If you want maximum market participation with minimal fees and no dividend screen, VTSAX's total-market approach and 1.02 beta deliver purer market returns. The choice hinges on whether you value income generation and quality tilting over diversification and market-weight simplicity. Past performance does not predict future results.

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

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