# SCHD vs VIG: fees, holdings and returns compared

> SCHD vs VIG: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

SCHD holds about 100 US companies picked for steady dividends and strong finances. VIG holds about 330 large US companies that have raised their dividends for at least 10 years in a row. SCHD pays more now, while VIG holds more growth companies. Over the same dates since October 2011, SCHD returned about 13.5% a year and VIG returned about 13.0% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 20, 2026.

## Key points

- VIG costs less: 0.04% a year against 0.06%.
- SCHD started trading in October 2011. VIG started in April 2006.
- Worst drops since 2011: SCHD −33.4%, VIG −31.7%.
- Daily correlation: 0.93 (1 means they always move together).

## What is the difference between SCHD and VIG?

VIG's index leaves out the highest-paying quarter of qualifying companies, so it leans toward companies with lower dividends that grow, including large tech and health companies. SCHD ranks on yield as well as quality, so it leans toward higher payers in industries such as energy, consumer goods and health care. That makes them behave differently: VIG moves more like the broad market and SCHD more like a value fund.

| Fact | SCHD | VIG |
| --- | --- | --- |
| Full name | Schwab U.S. Dividend Equity ETF | Vanguard Dividend Appreciation ETF |
| Issuer | Schwab | Vanguard |
| Expense ratio | 0.06% a year | 0.04% a year |
| Started trading | October 20, 2011 | April 21, 2006 |
| Tracks | Dow Jones U.S. Dividend 100 Index | S&P U.S. Dividend Growers Index |
| Holdings | 98 holdings as of February 28, 2026 | 333 holdings as of September 30, 2026 |
| Type | US stocks, ETF | US stocks, ETF |

Fund facts checked on the [Schwab SCHD page](https://www.sec.gov/Archives/edgar/data/1454889/000110465926020681/tm266454-15_497k.htm) and the [Vanguard VIG page](https://investor.vanguard.com/investment-products/etfs/profile/vig).

## Is SCHD or VIG cheaper?

VIG costs less: 0.04% a year against 0.06%. On $10,000, that is about $6 a year for SCHD and $4 for VIG. The fund takes its fee out of its own value a little each day, so you never get a bill.

## SCHD vs VIG performance over the same dates

Both funds are measured from October 2011 to October 2026, the dates both traded. SCHD returned about 13.5% a year and VIG returned about 13.0% a year. SCHD came out ahead over this period, which does not mean it will again.

| Measure | SCHD | VIG |
| --- | --- | --- |
| $10,000 grew to | $66,979 | $62,700 |
| Total return | 569.8% | 527.0% |
| Return per year (CAGR) | 13.5% | 13.0% |
| Worst drop from a high | −33.4% | −31.7% |
| Volatility (how much it swings) | 15.3% | 14.9% |
| Last 12 months | 33.0% | 13.7% |
| Last 3 years, per year | 18.8% | 18.6% |
| Last 5 years, per year | 9.7% | 10.4% |
| Last 10 years, per year | 13.5% | 13.6% |

Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## SCHD and VIG returns by year

| Year | SCHD | VIG |
| --- | --- | --- |
| 2026 (part of the year) | 29.6% | 11.9% |
| 2025 | 4.3% | 14.2% |
| 2024 | 11.7% | 17.0% |
| 2023 | 4.5% | 14.5% |
| 2022 | −3.3% | −9.8% |
| 2021 | 29.9% | 23.8% |
| 2020 | 15.0% | 15.4% |
| 2019 | 27.3% | 29.6% |
| 2018 | −5.6% | −2.1% |
| 2017 | 20.8% | 22.2% |
| 2016 | 16.4% | 12.0% |
| 2015 | −0.3% | −1.9% |
| 2014 | 11.7% | 10.1% |
| 2013 | 32.9% | 28.9% |
| 2012 | 11.4% | 11.7% |
| 2011 (part of the year) | 5.3% | 5.4% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. SCHD's worst fall was −33.4%, from January 23, 2020 to March 23, 2020. It got back to that high on September 2, 2020.

VIG's worst fall was −31.7%, from February 14, 2020 to March 23, 2020. It got back to that high on August 26, 2020.

Their daily moves had a correlation of 0.93. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

## Why people choose SCHD or VIG

**SCHD.** People who want a higher dividend today from financially strong companies tend to pick SCHD.

**VIG.** People who want companies with a long record of raising dividends, and more growth, tend to pick VIG.

## Strategies that hold SCHD or VIG

No classic strategy holds SCHD or VIG yet.

## Other funds like SCHD and VIG

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [SCHD alternatives](https://tactfolio.com/alternatives/SCHD.md) and [VIG alternatives](https://tactfolio.com/alternatives/VIG.md).

## Test a mix of SCHD and VIG

Open the [builder](https://tactfolio.com/builder), add SCHD and VIG, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [SCHD](https://tactfolio.com/etf/SCHD.md) and [VIG](https://tactfolio.com/etf/VIG.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Dividend calculator](https://tactfolio.com/trading-tools/dividend-calculator): See the income your shares could pay over the years, with or without reinvesting (DRIP), with the formula and an example.
- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.

## Common questions

### Which pays a higher dividend, SCHD or VIG?

SCHD has usually paid the higher dividend, because it picks companies partly on yield. VIG leaves out the highest payers. Both change over time.

### Does VIG hold tech companies?

Yes. Several large tech companies have raised their dividends for 10 years or more, so they are in VIG. SCHD holds fewer of them.

### Which is cheaper, SCHD or VIG?

VIG costs less: 0.04% a year against 0.06%. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, SCHD or VIG?

From October 2011 to October 2026, SCHD returned about 13.5% a year and VIG returned about 13.0% a year, with dividends reinvested. Their worst drops were −33.4% and −31.7%. Past returns do not tell you what comes next.

## Sources

- [Schwab: Schwab U.S. Dividend Equity ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000110465926020681/tm266454-15_497k.htm)
- [Vanguard: Vanguard Dividend Appreciation ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vig)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.