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.
VTI
Vanguard Total Stock Market ETF
VTI tracks the CRSP US Total Market Index, representing nearly 100% of the investable U.S. stock market. Includes large, mid, small, and micro-cap stocks across all sectors and styles.
Key Metrics Comparison
| Metric | SCHD | VTI | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 1.41% | SCHD (+2.05%) |
| Expense Ratio | 0.06% | 0.03% | VTI (-0.03%) |
| 5-Year Annual Return | 11.2% | 13.8% | VTI (+2.6%) |
| Number of Holdings | 104 | 3,756 | VTI |
| Assets Under Management | $95.2B | $1.4T | VTI |
| P/E Ratio | 15.2 | 22.5 | SCHD |
| Market Cap Coverage | Large-Cap Only | All-Cap (100%) | VTI |
| Volatility (5-Year) | 15.2% | 16.8% | SCHD |
Performance Comparison
SCHD Performance
Strong total returns with higher income and quality focus. Value-oriented approach with defensive characteristics during downturns.
VTI Performance
Higher total returns with complete market exposure. Captures growth across all market caps and sectors.
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
- Concentrated in 104 large-cap companies
VTI Approach
Complete U.S. stock market indexing:
- Tracks CRSP US Total Market Index
- 3,756+ holdings across all market caps
- Market-cap weighted (large-cap dominant)
- Extremely low-cost passive strategy
- Complete U.S. market representation
- No active stock selection
- Includes growth and value stocks
- Ultimate diversification in one ETF
Focused vs Complete Diversification
SCHD offers focused quality (104 holdings, quality screens, 3.27% yield) with value tilt, while VTI provides complete diversification (3,756 holdings, total market, 1.41% yield). This represents the choice between targeted quality and maximum diversification.
SCHD Focused Advantages
Quality screens: Financial health filters
Higher income: 3.27% yield vs 1.41%
Lower valuation: P/E 15.2 vs 22.5
Defensive tilt: Healthcare, staples focus
VTI Diversification Advantages
Complete exposure: 3,756 holdings
Higher returns: 13.8% vs 11.2% (5-year)
Lower cost: 0.03% vs 0.06% expense ratio
All-cap exposure: Large, mid, small, micro-cap
Market Capitalization Exposure
Market Cap Distribution Comparison
SCHD is exclusively large-cap (100%), while VTI provides exposure across all market capitalizations including mid and small caps that have historically provided higher returns.
SCHD
VTI Large-Cap
VTI Mid-Cap
VTI Small-Cap
Income Analysis
SCHD Income Profile
High dividend income with growth potential. Focus on sustainable dividends from financially healthy companies.
VTI Income Profile
Lower yield with broader growth exposure. Total market dividends from companies of all sizes.
Sector Allocation
SCHD Sectors
VTI Total Market Sectors
Top 5 Holdings
SCHD Top Holdings
VTI Top Holdings
Investment Recommendation
🎯 Choose SCHD If:
- Higher current income is important (3.27% vs 1.41%)
- You prefer quality screens and financial health filters
- Lower valuations appeal to you (P/E 15.2 vs 22.5)
- You want defensive sector exposure (healthcare, staples)
- Dividend growth is a priority (8.5% vs 6.8%)
- You're in or near retirement and need income
- You believe in focused, quality investing
- You want lower volatility (15.2% vs 16.8%)
🌎 Choose VTI If:
- Maximum diversification is your priority
- You want complete U.S. market exposure (3,756 stocks)
- Ultra-low costs matter (0.03% vs 0.06%)
- You want exposure to mid and small caps
- Maximum total return is your goal (13.8% vs 11.2%)
- You're building a long-term portfolio foundation
- Simplicity and "set it and forget it" appeal to you
- You believe in market efficiency and indexing
💡 Portfolio Construction Strategy
Many investors use VTI as their core holding (70-80% of equity allocation) and add SCHD as a satellite position (20-30%) to boost income and add quality/value tilt. This combines VTI's diversification with SCHD's income and defensive characteristics.