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Dividend Vision

ETF Comparison

SCHD vs VUG: A Dividend Screen, or a Growth Sleeve?

A head-to-head of Schwab's U.S. Dividend Equity ETF and Vanguard's large-cap growth ETF covering cash versus appreciation, cost, and overlap.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • SCHDInvestors who want higher current income (3.28% vs 0.40% for VUG).
  • VUGInvestors who want a growth tilt and can accept bigger swings for higher upside.

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. 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 VUG over the trailing twelve months, posting a 24.24% total return against 13.58%. The picture flips over 10 years, though — VUG has compounded at 18.03% a year, ahead of SCHD at 12.52%. SCHD has been the steadier holding, though — annualized volatility of 13.2% against 19.7% for VUG. 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
SCHD20.19%24.24%15.79%9.12%12.52%13.08%13.2%0.781.13-16.1%
VUG11.56%13.58%26.02%13.72%18.03%16.95%19.7%0.951.38-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 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.
MetricSCHDVUG
Full nameSchwab U.S. Dividend Equity ETFVanguard Morningstar Growth ETF
IssuerSchwabVanguard
Underlying indexDow Jones U.S. Dividend 100 IndexMorningstar US Large Cap Growth Index
Last Close$32.53 as of September 30, 2026$90.11 as of September 30, 2026
Distribution rate3.28%0.40%
Trailing 12-month yield3.24%0.38%
Distribution Safety Score™ 10090
Safety-Adjusted Yield 3.28%0.36%
Expense ratio0.06%0.03%
AUM$110B$235B
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 Large Cap Growth Index.
Asset classEquityEquity
Inception date10/20/201101/26/2004
Beta0.561.27
Last dividend$0.2665$0.091 payable today
Ex-dividend date09/23/202609/28/2026

Bottom lineChoose SCHD if you want higher current income (3.28% vs 0.40% for VUG). Choose VUG if you want a growth tilt and can accept bigger swings for higher upside.

SCHD vs VUG: dividend quality or growth?

Opposite jobs. SCHD screens for dividend quality. VUG is large-cap growth. Cost is not the decision.

SCHDVUG
What it ownsQuality US dividend payersUS large-cap growth
Expense ratio0.06%0.03%
Distribution rate3.28%0.40%
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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$612B

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$4677B

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 VUG.

See all Vanguard ETFs

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Quick verdict

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

SCHD offers the higher yield at 3.28% vs 0.40% for VUG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VUG 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 VUG is linked to Morningstar US Large Cap Growth Index, which means their performance drivers differ.

VUG is the larger fund by assets ($235B), 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 3.28% vs 0.40% for VUG.
  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Prefer lower volatility — a beta of 0.6 vs 1.3 for VUG.

Choose VUG

Vanguard Morningstar Growth ETF

  • Want a growth tilt and can accept larger swings for more upside.
  • 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 $82.00 cash per distribution, while VUG would produce $10.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.28%
VUG yield0.40%
Cash diff on $10K$72.00

Cost & efficiency

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

SCHD ER0.06%
VUG ER0.03%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index, while VUG tracks Morningstar US Large Cap Growth Index with a growth approach. Beta is 0.56 for SCHD and 1.27 for VUG, making SCHD the less volatile of the two by this measure.

SCHD beta0.56
VUG beta1.27

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $110B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $235B in assets.

SCHD AUM$110B
VUG AUM$235B
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Frequently asked questions

What is the difference between SCHD and VUG?

SCHD (Schwab U.S. Dividend Equity ETF) screens Dow Jones U.S. Dividend 100 Index for quality dividend payers and distributes 3.28% quarterly. VUG (Vanguard Morningstar Growth ETF) holds large-cap growth and distributes 0.40%, so most of its expected return is price change. Cost is 0.06% versus 0.03%. Beta is 0.56 versus 1.27. They are opposite jobs. Figures as of September 2026.

What is the current distribution rate for SCHD and VUG?

SCHD currently distributes 3.28% and VUG 0.40%, 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 VUG 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.

Can I hold both SCHD and VUG?

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 VUG safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SCHD scores 100, VUG scores 90, so SCHD's payout currently looks the more resilient of the two. SCHD has also shown lower price volatility (beta 0.56 vs 1.27 for VUG). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHD or VUG?

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

At current rates, $10,000 in SCHD would generate roughly $82.00 cash per distribution ($328.00 annually). The same in VUG would produce about $10.00 cash per distribution ($40.00 annually).

Which has performed better historically, SCHD or VUG?

SCHD has outpaced VUG over the trailing twelve months, posting a 24.24% total return against 13.58%. The picture flips over 10 years, though — VUG has compounded at 18.03% a year, ahead of SCHD at 12.52%. SCHD has been the steadier holding, though — annualized volatility of 13.2% against 19.7% for VUG. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHD vs VUG — at a glance

Generated September 26, 2026.

Overview

SCHD and VUG are both large-cap equity ETFs from low-cost issuers, but they pursue opposite strategies. SCHD targets high-dividend-paying, fundamentally strong companies tracked by the Dow Jones U.S. Dividend 100 Index, while VUG tracks the Morningstar US Large Cap Growth Index, which focuses on companies with strong growth characteristics. This makes them nearly opposite equity exposures—one tilted toward income and stability, the other toward capital appreciation.

How they differ

The biggest difference is their underlying strategy: SCHD selects for dividend yield and payout consistency, while VUG selects for earnings growth and price momentum. That difference shows up immediately in their yield profiles—SCHD distributes 3.28%, while VUG distributes just 0.40%—and in their market sensitivity. SCHD carries a 0.56 beta, indicating lower volatility relative to the market, while VUG's 1.27 beta reflects greater price swings tied to growth stocks. VUG is the larger fund by asset base at $235B, compared to SCHD's $110B, though both are enormous. SCHD's expense ratio is 0.06%, slightly higher than VUG's 0.03%, but negligible in absolute terms for either investor.

Who each is best for

SCHD: Fits investors seeking quarterly income from U.S. large-cap stocks and who value lower portfolio volatility; appeals to those with a preference for established, dividend-paying businesses over high-growth names.

VUG: Fits investors focused on long-term price appreciation with minimal current income, and who can tolerate greater price swings in exchange for exposure to earnings-driven growth in large-cap companies.

Key risks to know

  • Dividend-yield sustainability in SCHD: A 3.28% distribution rate depends on the underlying index constituents maintaining or growing their payouts. In a downturn, dividend cuts can erode both yield and price, and past consistency does not guarantee future behavior.
  • Growth-stock concentration risk in VUG: Growth-focused indices can cluster heavily in technology and other momentum-sensitive sectors. A broad market downturn or a shift away from growth styles could hit VUG's performance harder than a diversified value-oriented fund.
  • Factor rotation risk: SCHD's dividend tilt and VUG's growth tilt perform cyclically. Long periods of growth outperformance can leave dividend funds trailing; conversely, value/dividend rotations can penalize growth allocations. Neither fund can predict which cycle will prevail.
  • Overlap with broad market: Both funds hold U.S. large-cap stocks, meaning their returns will correlate strongly with the overall equity market and with each other in absolute terms, despite their opposing tilts.

Bottom line

If you prioritize quarterly income and lower volatility, SCHD's dividend focus and 0.56 beta stand out; if you're building for growth with minimal current distributions, VUG's $235B asset base and growth tilt fit that profile. Both charge negligible fees and track their respective indices faithfully—the real choice hinges on whether your portfolio needs income now or growth later. 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.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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These comparisons follow the Dividend Vision methodology.