SCHD
Schwab U.S. Dividend Equity ETF
SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on high dividend yield with rigorous quality screens. Requires 10+ years of dividend payments and screens for financial health metrics. 100% US exposure to quality large-cap companies.
SCHG
Schwab U.S. Large-Cap Growth ETF
SCHG tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, providing exposure to large-cap growth stocks in the US market. Focuses on companies with strong growth characteristics like revenue growth, earnings growth, and price momentum.
Key Metrics Comparison
| Metric | SCHD | SCHG | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 0.42% | SCHD (+3.04%) |
| Expense Ratio | 0.06% | 0.04% | SCHG (-0.02%) |
| 5-Year Annual Return | 11.2% | 15.8% | SCHG (+4.6%) |
| Number of Holdings | 104 | 250 | SCHG |
| Assets Under Management | $95.2B | $17.8B | SCHD |
| P/E Ratio | 15.2 | 28.5 | SCHD |
| Investment Style | Value/Dividend | Growth | Different Strategies |
| Volatility (5-Year) | 15.2% | 20.5% | SCHD |
Performance Comparison
SCHD Performance
Strong total returns with significantly higher income. Value-oriented approach with defensive characteristics during market downturns. Lower volatility than growth strategies.
SCHG Performance
Higher total returns with minimal income. Pure growth focus has outperformed in recent bull markets. Higher volatility but strong growth potential during economic expansions.
Strategy Analysis
SCHD Approach
Value-focused dividend growth investing:
- Minimum 10 years of dividend payments
- Dividend yield > 2.5% requirement
- Cash flow to total debt > 50%
- Return on equity > 15%
- Market cap > $500 million
- Focus on financial health and stability
- Value-oriented, defensive sectors
- Concentrated in 104 quality companies
SCHG Approach
Pure large-cap growth investing:
- Tracks Dow Jones Large-Cap Growth Index
- 250 large-cap growth companies
- Focus on growth characteristics
- Revenue growth, earnings growth factors
- Price momentum consideration
- Market-cap weighted within growth universe
- Ultra-low expense ratio (0.04%)
- Technology and growth sector focus
Value vs Growth Style Investing
SCHD represents value/dividend investing (104 holdings, quality screens, 3.27% yield) with defensive tilt, while SCHG represents pure growth investing (250 holdings, growth factors, 0.42% yield). This is a classic value vs growth comparison within Schwab's own ETF lineup.
SCHD Value Advantages
Quality screens: Financial health filters
Higher income: 3.27% yield vs 0.42%
Lower valuation: P/E 15.2 vs 28.5
Lower volatility: 15.2% vs 20.5%
SCHG Growth Advantages
Better returns: 15.8% vs 11.2% (5-year)
Lower cost: 0.04% vs 0.06% expense ratio
Growth potential: Strong in bull markets
Tech leadership: Exposure to innovation leaders
Value vs Growth Characteristics
Investment Style Comparison
SCHD represents value investing characteristics while SCHG represents growth investing - two complementary investment styles that typically perform differently across market cycles.
SCHD: Value Characteristics
SCHG: Growth Characteristics
Market Cycle Performance
Risk Characteristics
Market Capitalization Exposure
Market Cap Distribution Comparison
Both SCHD and SCHG are large-cap focused, but SCHD includes some mid-cap exposure while SCHG is almost exclusively large-cap with mega-cap technology dominance.
SCHD Large-Cap
SCHD Mid-Cap
SCHG Large-Cap
SCHG Mega-Cap
Income Analysis
SCHD Income Profile
High dividend income from US quality companies with strong dividend growth history. Focus on sustainable dividends from financially healthy US corporations with yield > 2.5% requirement.
SCHG Income Profile
Very low yield typical of growth stocks. Growth companies typically reinvest earnings rather than pay dividends. Focus is on capital appreciation, not income generation.
Sector Allocation
SCHD Sectors (Value/Dividend Focus)
SCHG Sectors (Growth Focus)
Top 5 Holdings
SCHD Top Holdings (Value/Dividend)
SCHG Top Holdings (Growth)
Investment Recommendation
🎯 Choose SCHD If:
- Higher current income is critical (3.27% vs 0.42%)
- You prefer value investing with quality screens
- Lower valuations appeal to you (P/E 15.2 vs 28.5)
- Dividend growth is a priority (8.5% vs 12.5%)
- You want lower volatility (15.2% vs 20.5%)
- You're in or near retirement and need income
- Defensive characteristics are important
- You believe value will outperform growth
🚀 Choose SCHG If:
- Maximum growth potential is your priority
- You want pure large-cap growth exposure
- Higher total returns matter (15.8% vs 11.2%)
- Lower expense ratio appeals (0.04% vs 0.06%)
- Technology sector leadership is important
- You're in accumulation phase and don't need income
- You can tolerate higher volatility
- You believe growth will continue outperforming
💡 Portfolio Construction Strategy
Most investors benefit from holding both SCHD and SCHG together for style diversification. Consider 50% SCHD + 50% SCHG for balanced value/growth exposure, or tilt based on your view: 60% SCHD/40% SCHG for value tilt, 40% SCHD/60% SCHG for growth tilt. For core-satellite approach: 70% SCHB (Schwab US Broad Market) + 15% SCHD + 15% SCHG. This provides market exposure plus value and growth tilts at ultra-low Schwab costs.