🤝 BFF Take
SCHD Has the Edge — Quality Screen Plus Better Return History
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.
📋 Quick Takeaways
💰Both charge 0.06% — this is entirely a strategy decision, not a cost decision
📊VIG holds 300+ stocks (10+ consecutive years of increases); SCHD holds 100 stocks (10 years plus quality screens)
🎯SCHD has historically paid a higher yield and delivered better total return; VIG offers broader diversification
📊 Data-Based Take: SCHD has the lower fee
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.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
VIG
Vanguard Dividend Appreciation ETF
SCHD
Schwab US Dividend Equity ETF
📋 VIG vs SCHD — Key Facts Side by Side
| Metric |
VIG |
SCHD |
| Fund Name |
Vanguard Dividend Appreciation ETF |
Schwab US 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 |
$90B+ |
$65B+ |
| Holdings |
315 |
100 |
| Inception |
2006 |
2011 |
| 1-Year Return |
+13.80% |
+10.50% |
| 3-Year Return |
+9.40% |
+7.20% |
| 5-Year Return |
+13.20% |
+11.80% |
| Avg Bid-Ask Spread |
0.01% |
0.00% |
Data 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.
🎯 Should You Buy VIG or SCHD?
Choose if...
VIG
- You want broader diversification (315 holdings vs 100)
- You want tech-heavy large-cap growth exposure via S&P US Dividend Growers Index
Choose if...
SCHD
- You want regular dividend income from quality dividend payers
- You already use Schwab and prefer staying within their fund family
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❓ VIG vs SCHD — Frequently Asked Questions
Is SCHD better than VIG?
By total return, SCHD has edged VIG over most periods. By dividend yield, SCHD also typically pays more — around 3.3–3.7% vs VIG's 1.6–2.0%. VIG offers broader diversification (300+ stocks) and slightly less volatility. SCHD's quality screen selects a more concentrated, higher-quality 100 stocks.
Does VIG or SCHD have more overlap with SPY?
Both have meaningful overlap with the S&P 500 since they hold large-cap US dividend payers. SCHD has somewhat less overlap because its quality screen (cash flow, ROE, payout ratio, dividend consistency) selects a more distinct set of 100 stocks. VIG's 300+ holdings naturally overlap more with the broader S&P 500.
Can I hold both VIG and SCHD?
You can, but the overlap is significant. Both hold quality US dividend payers, so combining them doesn't add much diversification. The more useful pairing is one of these dividend funds alongside a broad market fund like VTI or VOO to cover non-dividend growth stocks.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.