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.
VOO
Vanguard S&P 500 ETF
VOO tracks the S&P 500 Index, representing 500 of the largest U.S. companies. Provides broad market exposure across all sectors with extremely low costs. The classic benchmark for U.S. equity investing.
Key Metrics Comparison
| Metric | SCHD | VOO | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 1.34% | SCHD (+2.12%) |
| Expense Ratio | 0.06% | 0.03% | VOO (-0.03%) |
| 5-Year Annual Return | 11.2% | 14.8% | VOO (+3.6%) |
| Number of Holdings | 104 | 503 | VOO |
| Assets Under Management | $95.2B | $928B | VOO |
| P/E Ratio | 15.2 | 23.8 | SCHD |
| P/B Ratio | 2.8 | 4.2 | SCHD |
| Volatility (5-Year) | 15.2% | 17.5% | SCHD |
Performance Comparison
SCHD Performance
Strong total returns with higher income and lower volatility. Value-oriented approach has outperformed in certain market environments.
VOO Performance
Higher total returns with broad market exposure. Tech-heavy concentration has driven strong performance in recent years.
Strategy Analysis
SCHD Approach
Quality-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
- Full participation in market upside
VOO Approach
Broad market S&P 500 indexing:
- Tracks S&P 500 Index exactly
- 500 largest U.S. companies by market cap
- Market-cap weighted (largest companies dominate)
- Extremely low-cost passive strategy
- Full U.S. market representation
- No active stock selection
- Technology sector is largest (30%+)
- Classic "set it and forget it" investment
Value vs Growth Analysis
SCHD represents value investing (11.2% returns, 3.27% yield, P/E 15.2) with quality screens and income focus, while VOO represents growth/market-cap investing (14.8% returns, 1.34% yield, P/E 23.8). This represents the classic value vs growth debate in investing.
SCHD Value Advantages
Lower valuation: P/E 15.2 vs 23.8
Higher income: 3.27% yield vs 1.34%
Quality screens: Financial health filters
Lower volatility: 15.2% vs 17.5%
VOO Growth Advantages
Higher returns: 14.8% vs 11.2% (5-year)
Broader diversification: 503 vs 104 holdings
Lower cost: 0.03% vs 0.06% expense ratio
Tech exposure: Full participation in tech growth
Valuation Comparison
Relative Valuation Metrics
SCHD trades at a significant discount to VOO across all major valuation metrics, reflecting its value orientation vs VOO's growth/market-cap weighting.
Income Analysis
SCHD Income Profile
High dividend income with growth potential. Focus on sustainable dividends from financially healthy companies.
VOO Income Profile
Lower yield with growth focus. Broad market dividends from S&P 500 companies.
Sector Allocation
SCHD Sectors
VOO S&P 500 Sectors
Top 5 Holdings
SCHD Top Holdings
VOO Top Holdings
Investment Recommendation
🏦 Choose SCHD If:
- Higher current income is important (3.27% vs 1.34%)
- You prefer value-oriented, defensive companies
- Lower valuations appeal to you (P/E 15.2 vs 23.8)
- You want quality screens for financial health
- Lower volatility matters (15.2% vs 17.5%)
- You're in or near retirement and need income
- You believe value will outperform growth
- Dividend growth is a priority (8.5% vs 6.2%)
📈 Choose VOO If:
- Maximum total return is your primary goal
- You want broad S&P 500 market exposure
- Ultra-low costs matter (0.03% vs 0.06%)
- You believe in market-cap weighted indexing
- Tech sector growth exposure is important
- You're building a long-term portfolio foundation
- Simplicity and ease of management matter
- You're comfortable with higher valuations
💡 Expert Insight: Consider Both
Many investors use both SCHD and VOO in their portfolios. VOO provides growth and broad market exposure, while SCHD adds income, value tilt, and quality screens. A 50/50 or 60/40 split can give you the best of both worlds.