VIG vs SCHD: Which Dividend Growth ETF Is Better?
Both screen for dividend quality. SCHD has historically won on total return.
SCHD has outperformed VIG on total return for most measured periods while maintaining a higher dividend yield. SCHD's quality screen (cash flow, return on equity, dividend growth) has proven to be an effective filter for compounding. VIG is broader (300+ stocks vs SCHD's 100) and more conservative — its 10-year consecutive growth requirement is strict but doesn't include yield or quality screens. For investors who want the best of dividend growth and quality, SCHD has the edge.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 VIG vs SCHD — Key Facts Side by Side
| Metric | VIG | SCHD |
|---|---|---|
| Fund Name | Vanguard Dividend Appreciation Index Fund ETF Shares | Schwab U.S. Dividend Equity ETF |
| Issuer | Vanguard | Schwab |
| Tracks Index | S&P US Dividend Growers Index | Dow Jones US Dividend 100 |
| Expense Ratio | 0.06% | 0.06% |
| Cost per $10K/yr | $6.00 | $6.00 |
| AUM | $124.6B | $95.7B |
| Holdings | 315 | 100 |
| Inception | 2006 | 2011 |
| 1-Year Return | +15.78% | +18.64% |
| 3-Year Return | +16.20% | +14.60% |
| 5-Year Return | +10.70% | +8.77% |
| Dividend Yield | 1.51% | 3.30% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.00% |
Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 VIG vs SCHD — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want broader diversification (315 holdings vs 100)
- want tech-heavy large-cap growth exposure via S&P US Dividend Growers Index
- want regular dividend income from quality dividend payers
- already use Schwab and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ VIG vs SCHD — Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →