Two prominent dividend-oriented ETFs, SCHD and VIG, are under scrutiny as investors weigh yield, expense ratios, and portfolio composition. SCHD offers higher dividend yield and lower fees, while VIG emphasizes growth potential with broader sector exposure.
- SCHD has a 3.82% dividend yield, higher than VIG’s 3.55%.
- SCHD’s expense ratio is 0.04%, compared to VIG’s 0.07%.
- SCHD delivered 78.4% five-year total return vs. VIG’s 72.1%.
- SCHD’s top five holdings represent 17.3% of assets, slightly more concentrated than VIG’s 15.6%.
- SCHD has $115B in assets, VIG has $90B.
- Both ETFs are widely held in retirement accounts and advisory platforms.
The debate between Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VIG) intensified in early 2026 as both funds attracted significant investor attention amid evolving market conditions. SCHD, launched in 2011 with assets exceeding $115 billion, maintains a focus on high-quality, large-cap U.S. equities with a history of consistent dividend growth. VIG, established in 2006 with over $90 billion in assets, targets higher-yielding stocks across a broader mix of sectors, including financials, utilities, and real estate. Both funds are held by over 7 million individual and institutional investors combined. SCHD’s trailing 12-month dividend yield stands at 3.82%, outpacing VIG’s 3.55% yield, despite both funds tracking U.S. equities with strong dividend histories. SCHD has maintained a lower expense ratio of 0.04% compared to VIG’s 0.07%, contributing to its long-term cost advantage. Over the past five years, SCHD delivered a total return of 78.4%, while VIG achieved 72.1%, reflecting stronger capital appreciation and resilience during market volatility. Portfolio composition reveals key differences: SCHD holds 116 stocks with a median market cap of $300 billion, favoring established firms like Microsoft, Johnson & Johnson, and ExxonMobil. VIG’s portfolio includes 122 stocks with a median market cap of $185 billion, including higher allocations to financials and energy. As of January 2026, SCHD’s top five holdings accounted for 17.3% of assets, compared to VIG’s 15.6%, indicating slightly more concentration. Market analysts note that while SCHD’s performance and cost structure make it more attractive for income-focused investors seeking stability, VIG’s broader exposure may appeal to those prioritizing growth potential within the dividend space. Both funds are widely used in retirement accounts and advisory portfolios, with SCHD ranking as the second-largest dividend ETF by assets and VIG sixth.