Trump's June VIG Sale Highlights Divergence Between VIG and SCHD

Trump's Disclosed VIG Sale

President Donald Trump's largest disclosed transaction in June was a sale of shares in the Vanguard Dividend Appreciation ETF (VIG), with a value between $5 million and $25 million, according to a periodic transaction report filed with the Office of Government Ethics on Aug. 22, 2026. The filing, as reported by CNBC, does not specify the exact amount or the rationale, nor does it indicate how many VIG shares Trump still holds.

In the same month, Trump purchased shares of Fidelity National Information Services (FIS) and Home Depot (HD), each in the $1 million to $5 million range, and also bought the Technology Select Sector SPDR ETF (XLK). Notably, he did not sell any shares of the Schwab U.S. Dividend Equity ETF (SCHD).

VIG vs. SCHD: Different Strategies, Different Performance

VIG and SCHD are built on fundamentally different methodologies. VIG tracks the S&P U.S. Dividend Growers Index, which requires companies to have at least 10 consecutive years of dividend increases, then excludes the top 25% highest-yielding names as a quality filter. It holds over 300 stocks, charges an expense ratio of 0.04%, and has assets under management of approximately $124.7 billion. Its sector weights lean toward technology, healthcare, and industrials.

SCHD, on the other hand, tracks the Dow Jones U.S. Dividend 100 Index, which screens for current yield and financial strength rather than dividend growth. It holds roughly 100 stocks and had net assets of $94.95 billion as of May 31, 2026. Top holdings include QUALCOMM at about 6.7%, Texas Instruments at about 5.9%, and UnitedHealth Group at about 5.1%. Energy constitutes roughly 12.5% to 15% of assets, a high weighting for the category, while technology is around 9%.

The performance gap in 2026 has been striking. As of Aug. 21, 2026, SCHD closed at $35.11, up 30.1% year to date on an adjusted price basis. VIG closed at $243.91, up 11.89% year to date. Over the past year, SCHD is up 32.24%, while VIG is up 18.6%. However, over five years, the two are nearly tied: SCHD is up 63.75% and VIG is up 65.06%. Over ten years, SCHD is up 244.59% and VIG is up 243.1%.

Why SCHD Has Outperformed

Several factors explain SCHD's strong 2026 performance. First, a value-factor revival: SCHD trades at around 18 to 19 times forward earnings, while the broader market's Shiller P/E ratio is near its second-highest level ever. SCHD's return on equity is about 26.5%.

Second, energy: SCHD holds oversized positions in Chevron, ConocoPhillips, and EOG Resources. Brent crude averaged around $106 a barrel in May and June, driven by supply disruptions related to the Iran conflict and the Strait of Hormuz. That conflict had not resolved as of late August, with a June interim deal having lapsed.

Third, SCHD's dividend-quality screen structurally excludes most of the AI-infrastructure mega-caps—Nvidia, Microsoft, Apple, and Alphabet—which led the market from 2023 through 2025 but stumbled in stretches of 2026.

The bull case for SCHD is that value has lagged for years, and a mean-reversion cycle could continue to favor dividend-value funds. The bear case is that the energy tailwind depends on continued Middle East supply disruption, which is not guaranteed, and that roughly $700 billion in 2026 AI capital expenditure from major tech companies could reassert mega-cap leadership. In that scenario, SCHD would likely lag, as it has no meaningful position in Nvidia, Microsoft, Apple, or Alphabet.

What It Means for Income Investors

Trump's VIG sale is a separate event from SCHD's performance, but it highlights the divergent paths of two popular dividend ETFs. For income-focused investors, the key variables to watch are oil prices, AI capex trends, and whether SCHD can sustain its lead. Both funds have similar long-term records, so the choice may come down to whether one prefers dividend growth (VIG) or high current yield with value tilt (SCHD).

Reporting based on: Yahoo Finance. Figures verified against market data where available.