SCHD
Schwab U.S. Dividend Equity ETF
SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on high dividend yield with quality screens. Requires 10+ years of dividend payments and screens for financial health metrics.
VIG
Vanguard Dividend Appreciation ETF
VIG tracks the Nasdaq US Dividend Achievers Select Index, focusing on companies with 10+ years of consecutive dividend increases. Emphasizes dividend growth over current yield.
Key Metrics Comparison
| Metric | SCHD | VIG | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 1.90% | SCHD (+1.56%) |
| Expense Ratio | 0.06% | 0.06% | Tie |
| 5-Year Annual Return | 11.2% | 10.8% | SCHD (+0.4%) |
| Dividend Growth (5Y) | 8.5% | 9.2% | VIG (+0.7%) |
| Number of Holdings | 104 | 311 | VIG |
| Assets Under Management | $95.2B | $75.8B | VIG |
| P/E Ratio | 15.2 | 22.5 | SCHD |
| Beta (5-Year) | 0.85 | 0.88 | SCHD |
Performance Comparison
SCHD Performance
Higher yield and slightly better total returns. Strong performance in value-driven markets with lower volatility.
VIG Performance
Slightly lower returns but faster dividend growth. Better performance in growth-oriented markets with broader diversification.
Strategy Analysis
SCHD Approach
Yield-focused dividend growth with quality screens:
- 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 current income and growth
- Value-oriented portfolio
VIG Approach
Pure dividend appreciation with growth focus:
- Minimum 10 years of dividend increases
- No minimum yield requirements
- Focus on dividend growth consistency
- Broader diversification (311 holdings)
- Growth-oriented companies
- Emphasis on dividend sustainability
- Lower current yield, higher growth potential
Yield vs Appreciation Trade-off
SCHD focuses on current yield + growth (3.27% yield, 8.5% growth), while VIG focuses on pure dividend appreciation (1.90% yield, 9.2% growth). This represents the classic trade-off between income today (SCHD) vs faster dividend growth tomorrow (VIG).
Dividend Analysis
SCHD Dividend Profile
High current yield with steady growth. Focus on established dividend payers that meet yield and quality requirements.
VIG Dividend Profile
Lower current yield but faster growth. Focus on companies with proven ability to grow dividends consistently.
Sector Allocation
SCHD Sectors
VIG Sectors
Top 5 Holdings
SCHD Top Holdings
VIG Top Holdings
Investment Recommendation
💰 Choose SCHD If:
- Current income is your priority (3.27% yield)
- You prefer better value exposure (P/E 15.2)
- You want slightly better historical returns
- Lower volatility matters (beta 0.85)
- You like quality screens for financial health
- Dividend payments (vs increases) matter more
📈 Choose VIG If:
- Dividend growth is your primary goal (9.2%)
- You want broader diversification (311 holdings)
- You prefer pure dividend appreciation focus
- Larger asset base is important ($75.8B AUM)
- You want more industrial exposure
- Proven dividend increases matter most