■ ETF · July 21, 2026
SCHD vs VIG: Comparing Dividend Yield, Fees, and Sector Exposure
SCHD offers a higher dividend yield (3.2%) while VIG has lower fees (0.04%). Both ETFs track different indexes, leading to distinct sector weightings and performance.
Overview of SCHD and VIG
The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Dividend Appreciation ETF (VIG) are two popular dividend-focused exchange-traded funds. SCHD tracks the Dow Jones U.S. Dividend 100 Index, holding 103 high-quality dividend payers with sustainable distributions. VIG tracks the S&P U.S. Dividend Growers Index, holding 338 stocks that have increased dividends for at least 10 consecutive years. These different methodologies result in distinct sector allocations and performance profiles.
Key Metrics: Yield, Fees, and Volatility
SCHD offers a trailing-12-month dividend yield of 3.2%, more than double VIG's yield of 1.5%. However, VIG has a lower expense ratio of 0.04% compared to SCHD's 0.06%. Both funds are cost-efficient relative to the average ETF. In terms of volatility, SCHD has a lower beta (0.85) than VIG (1.02), suggesting SCHD may experience less price fluctuation relative to the S&P 500.
Portfolio Composition and Top Holdings
SCHD's sector allocation includes 19% consumer defensive, 19% healthcare, and 16% technology. Its top holdings are Qualcomm (6.51%), Texas Instruments (5.99%), and UnitedHealth Group (5.09%). VIG has a heavier technology tilt at 26%, followed by financials (21%) and healthcare (17%). Its largest positions are Broadcom (5.18%), Apple (4.08%), and Microsoft (3.97%). SCHD's dividend history shows a trailing-12-month distribution of $1.06 per share, while VIG's dividend history shows $3.45 per share.
Long-Term Performance
Since its inception in 2011, SCHD has generated a total return of 520% (13.3% CAGR), underperforming the S&P 500's 705% return (15.3% CAGR). VIG, launched in 2006, has delivered a total return of 602% (10.2% CAGR), also trailing the S&P 500. Both funds have lagged the broad market over the long term, but they offer income-focused investors a stream of dividends.
What It Means for Income Investors
SCHD provides a higher current yield and lower volatility, making it suitable for those prioritizing immediate income and stability. VIG offers broader diversification and a lower expense ratio, with a focus on dividend growth. The choice depends on whether an investor values higher yield or lower costs and a longer dividend growth track record.
Reporting based on: The Motley Fool. Figures verified against market data where available.