ETF Comparison

SCHG vs VGT: Which Is the Better Pick in 2026?

A head-to-head comparison of Schwab U.S. Large-Cap Growth ETF and Vanguard Information Technology 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 SCHG.

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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 VGT.

See all Vanguard ETFs

Side-by-side snapshot

	SCHG	VGT
Full name	Schwab U.S. Large-Cap Growth ETF	Vanguard Information Technology ETF
Issuer	Schwab	Vanguard
Last Close	$34.12 as of July 4, 2026	$114.64 as of July 4, 2026
Distribution yield	0.40%	0.48%
Distribution Safety Score	100	89
Expense ratio	0.04%	0.10%
AUM	$58.4B	$143B
Distribution frequency	Quarterly	Quarterly
Underlying index	Dow Jones U.S. Large-Cap Growth Total Stock Market Index	Basket (Vanguard Information Technology ETF holdings)
Objective	Capital Appreciation	Seeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, including technology software and services, hardware and equipment, and semiconductor manufacturers.
Asset class	Equity	Equity
Inception date	12/11/2009	01/26/2004
Beta	1.19	1.42
Last dividend	$0.0340	$0.1384
Ex-dividend date	06/24/2026	06/24/2026

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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

SCHG has lagged VGT over the trailing twelve months, posting a 18.35% total return against 40.16%. The lead holds up over 10 years too: VGT has compounded at 25.04% a year, against 18.68% for SCHG. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Dec 2009	Volatility	Sharpe	Sortino	Max drawdown
SCHG	5.11%	18.35%	22.62%	13.75%	18.68%	16.43%	19.4%	0.82	1.17	-23.4%
VGT	21.44%	40.16%	28.30%	18.86%	25.04%	19.96%	24.2%	0.85	1.20	-27.2%

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 Dec 2009” measures every fund from December 11, 2009 — 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

SCHG (Schwab U.S. Large-Cap Growth ETF) and VGT (Vanguard Information Technology ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VGT offers the higher yield at 0.48% vs 0.40% for SCHG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHG is cheaper with an expense ratio of 0.04% compared to 0.10%.

They track different benchmarks: SCHG is linked to Dow Jones U.S. Large-Cap Growth Total Stock Market Index while VGT tracks Basket (Vanguard Information Technology ETF holdings), which means their performance drivers differ.

VGT is the larger fund by assets ($143B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SCHG would generate roughly $3.33/month, while VGT would produce $4.00/month, at current distribution rates. Both pay quarterly distributions.

SCHG yield0.40%

VGT yield0.48%

Monthly diff on $10K$0.67

Cost & efficiency

Over 10 years on $10,000, SCHG would cost approximately $40 in fees vs $100 for VGT (simplified, not compounded). The $60.00 difference may be offset by yield or performance.

SCHG ER0.04%

VGT ER0.10%

Strategy & risk

SCHG tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index with a capital appreciation approach, while VGT tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach. Beta is 1.19 for SCHG and 1.42 for VGT, indicating SCHG is less volatile relative to the market.

SCHG beta1.19

VGT beta1.42

Fund details

SCHG is managed by Schwab (launched 12/11/2009) with $58.4B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $143B in assets.

SCHG AUM$58.4B

VGT AUM$143B

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Frequently asked questions

Is SCHG or VGT better for dividend income?

It depends on your goals. VGT 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 SCHG and VGT?

SCHG (Schwab U.S. Large-Cap Growth ETF) tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index with a capital appreciation approach, while VGT (Vanguard Information Technology ETF) tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach. They are issued by Schwab and Vanguard respectively.

Can I hold both SCHG and VGT?

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, SCHG or VGT?

SCHG has an expense ratio of 0.04% while VGT charges 0.10%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SCHG vs VGT generate?

At current rates, $10,000 in SCHG would generate roughly $3.33 per month ($40.00 annually). The same in VGT would produce about $4.00 per month ($48.00 annually).

Which has performed better historically, SCHG or VGT?

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SCHG vs VGT — at a glance

Generated June 2026 from current fund data.

Overview

SCHG is a broad large-cap growth tracker based on the Dow Jones U.S. Large-Cap Growth index, holding hundreds of stocks across all growth-oriented sectors. VGT is a concentrated sector play—it holds only information technology stocks (software, hardware, semiconductors) from the MSCI U.S. Investable Market index. The core difference: SCHG diversifies across growth stocks economy-wide, while VGT bets heavily on tech.

How they differ

The biggest distinction is scope. SCHG tracks a diversified growth index spanning all sectors; VGT is pure-play tech exposure. That concentration shows in beta: VGT's 1.42 is materially higher than SCHG's 1.19, reflecting tech's greater volatility relative to the broad market.

AUM and cost differ modestly. VGT is larger at $143B versus SCHG's $58.4B and charges 0.10% annually versus SCHG's 0.04%. Both offer minimal yields—0.48% for VGT, 0.42% for SCHG—consistent with growth-stock strategies that emphasize capital gains over distributions.

The inception dates tell a story: VGT launched in 2004, SCHG in 2009. VGT's longer track record means more history through multiple market cycles, though both track their respective indexes systematically with no active management.

Who each is best for

SCHG: Fits investors seeking broad exposure to large-cap growth stocks without sector concentration, preferring a low-cost, diversified entry point to the growth segment of the equity market.

VGT: Designed for investors willing to accept higher volatility in exchange for focused technology sector exposure, or those building a portfolio where tech represents a deliberate allocation slice rather than a default broad-market choice.

Key risks to know

Sector concentration in VGT. Technology stocks move together; a downturn in chip makers, software, or hardware can drag the entire fund with limited offset from other holdings. SCHG spreads risk across all growth sectors.

Higher volatility in VGT. The 1.42 beta means VGT swings roughly 42% harder than the market in both directions. Investors with shorter time horizons or lower risk tolerance may find drawdowns steeper than expected.

Growth-stock sensitivity to interest rates. Both funds hold companies with limited near-term earnings, making them vulnerable when discount rates rise. VGT, with its tech tilt, is particularly sensitive since investors pay a premium for growth in stable-rate environments.

SCHG's lower yield may signal slower payout growth. At 0.42%, it relies almost entirely on price appreciation rather than reinvested dividends, which can feel flat in sideways markets despite solid underlying earnings growth.

Cyclicality risk in both. Large-cap growth underperforms in value-dominated markets; tech especially struggles when economic growth stalls and investors rotate to defensive sectors.

Bottom line

If you want diversified growth exposure at minimal cost and lower volatility, SCHG's broader index and lower beta fit that profile. If you're comfortable with tech concentration and accept higher swings in pursuit of sector-specific upside, VGT's larger scale and longer history of tech-focused tracking offer that bet. Neither produces meaningful income; both are capital-appreciation vehicles. Past performance in tech's decade of outperformance doesn't guarantee future dominance.

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