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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 August 14, 2026

Best for

  • SCHDInvestors who want higher current income (2.93% vs 1.08% for VTSAX).
  • VTSAXInvestors who want the broadest one-fund diversification at rock-bottom cost.

Jump to the side-by-side numbers

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
Last Close$34.52 as of August 14, 2026$185.89 as of August 14, 2026
Distribution yield2.93%1.08%
Distribution Safety Score™ 100100
Expense ratio0.06%0.04%
AUM$106B$1000B
Distribution frequencyQuarterlyQuarterly
Underlying indexDow Jones U.S. Dividend 100 IndexUS Total Market
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—
Beta0.561.03
Last dividend$0.2525$0.5040
Ex-dividend date06/24/202606/26/2026

Bottom lineChoose SCHD if you want higher current income (2.93% vs 1.08% 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
ETFs34
Total AUM$605B

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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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 VTSAX over the trailing twelve months, posting a 30.33% total return against 22.24%. The picture flips over 10 years, though — VTSAX has compounded at 14.89% a year, ahead of SCHD at 12.94%. 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
SCHD26.54%30.33%15.81%9.72%12.94%13.60%13.2%0.781.13-16.1%
VTSAX14.78%22.24%21.42%12.33%14.89%15.04%15.4%0.991.42-19.4%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 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) is an ETF, while VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) is a mutual fund — they take fundamentally different approaches.

SCHD offers the higher yield at 2.93% vs 1.08% 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 track different benchmarks: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VTSAX tracks US Total Market, which means their performance drivers differ.

VTSAX is the larger fund by assets ($1000B), 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 2.93% vs 1.08% 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 $24.42/month, while VTSAX would produce $9.00/month, at current distribution rates. Both pay quarterly distributions.

SCHD yield2.93%
VTSAX yield1.08%
Monthly diff on $10K$15.42

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 an index approach. Beta is 0.56 for SCHD and 1.03 for VTSAX, indicating SCHD is less volatile relative to the market.

SCHD beta0.56
VTSAX beta1.03

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $106B in assets. VTSAX is managed by Vanguard with $1000B in assets.

SCHD AUM$106B
VTSAX AUM$1000B
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Frequently asked questions

What is the current distribution yield for SCHD and VTSAX?

SCHD currently distributes 2.93% and VTSAX 1.08%, based on fund data updated August 2026. Distribution yield 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 an index 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 1.03 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 $24.42 per month ($293.00 annually). The same in VTSAX would produce about $9.00 per month ($108.00 annually).

Which has performed better historically, SCHD or VTSAX?

SCHD has outpaced VTSAX over the trailing twelve months, posting a 30.33% total return against 22.24%. The picture flips over 10 years, though — VTSAX has compounded at 14.89% a year, ahead of SCHD at 12.94%. 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 August 15, 2026.

Overview

SCHD is a dividend-focused ETF that holds the 100 highest-yielding U.S. stocks with consistent dividend histories, selected for relative financial strength. VTSAX is a mutual fund tracking the entire U.S. stock market across all market capitalizations. The key distinction: SCHD concentrates on income-paying large caps; VTSAX provides broad diversification across roughly 3,500 stocks.

How they differ

SCHD's biggest difference is its narrow, income-tilted universe. It holds just 100 stocks screened for yield and dividend stability; VTSAX holds the full market. That concentration drives SCHD's distribution rate to 2.93% versus VTSAX's 1.08%—a 171-basis-point gap. Second, SCHD's beta of 0.56 signals lower volatility relative to the broader market than VTSAX's beta of 1.03, reflecting its defensive-stock tilt. Third, SCHD's expense ratio is 0.06% versus VTSAX's 0.04%, though both are exceptionally low; VTSAX's scale—$1000B in AUM versus SCHD's $106B—likely explains the slightly deeper fee structure.

Who each is best for

SCHD: Fits investors seeking higher current income from equities and who are comfortable with a concentrated portfolio of mature, slower-growth dividend payers. The lower beta appeals to those prioritizing downside dampening over market-tracking returns.

VTSAX: Fits investors pursuing buy-and-hold diversification across the entire U.S. market and who view dividend yield as a secondary concern. The broad exposure suits long time horizons and goal-based saving where capital growth matters more than income.

Key risks to know

  • Concentration in value/income stocks: SCHD's 100-stock portfolio is heavily tilted toward mature, slower-growth sectors (utilities, REITs, financials, energy). A prolonged low-rate environment that favors growth could cause meaningful underperformance relative to the broader market for years.
  • Dividend sustainability during downturns: The 2.93% distribution rate assumes dividend payouts remain stable through economic cycles. Recessions often force dividend cuts in financial and energy stocks, which are overweighted in SCHD relative to the broader market.
  • Market structure mismatch: SCHD's low beta suggests it may lag during sustained bull markets when growth and momentum drive returns. This is not a timing or volatility risk; it reflects the fund's design to own slower, more stable companies.
  • Valuation clustering: Because SCHD selects stocks primarily on yield and dividend consistency, it may accidentally concentrate in expensive sectors when dividend yields compress industry-wide (e.g., REITs or utilities at peak valuations).

Bottom line

If you want higher income and lower volatility in a concentrated dividend portfolio, SCHD's 2.93% yield and 0.56 beta stand out. If you prioritize simplicity, full-market diversification, and lower fees, VTSAX's $1000B scale and broad exposure across all U.S. equities offer a different appeal. The choice hinges on whether you're building a dedicated income sleeve or seeking a core holding—past performance of either approach 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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