SCHD vs VIG

Portfolio characteristics

Vanguard reports fund-level net assets of $127.7B (all share classes) and ETF-share assets of $109.1B at Sep 30; the $115.8B shown is the ETF figure on Vanguard’s fund page in early November. Beta is not comparable across providers, so VIG’s was not captured.

Top ten sums: SCHD 41.17% · VIG 34.5%. Vanguard rounds to one decimal. Weights change; no holding appears in both top-ten lists.

The sector mirror

Same funds, different lenses

Company size

SCHD (Schwab, Sep 30): 79.2% above $70B, 16.2% from $15B to $70B, 3.7% from $3B to $15B and 0.9% below $3B. VIG (Vanguard, Sep 30): median market capitalization $337.6B and about 99% in domestic stock. Both are large-company funds with almost no small caps.

What you actually own

Average annual: Schwab and Vanguard, Sep 30, 2026. “Since inception” starts in different years (SCHD 2011, VIG 2006), so do not compare those two columns. After-tax returns for SCHD use the highest historical federal rates; Vanguard’s fact sheet does not show them. Calendar years: SCHD from TotalRealReturns, VIG from Yahoo Finance. Past performance does not guarantee future results.

Growth of a hypothetical $10,000 · NAV total return to Sep 30, 2026

Both funds derived from the issuers’ annualized NAV returns (compounded). Distributions reinvested, fund expenses deducted. Illustration, not a forecast.

Quarterly payouts per share, newest first

Single payouts are noisy; a four-quarter comparison is steadier. Computed from the distribution tables above.

Rank by rank, the ten largest positions of each fund. SCHD: Schwab (Nov 5). VIG: Vanguard (Sep 30). Top five: SCHD 21.4%, VIG 22.1%. Top ten: SCHD 41.2%, VIG 34.5%.

Both trade on NYSE Arca with very tight spreads. A spread of 0.03% is about $30 between the buy and sell price on $100,000; 0.01% is about $10. Use limit orders for large trades and avoid the first and last minutes of the session. See creation, redemption and trading for how NAV, premiums and spreads arise.

Expense ratio is taken from fund assets, not billed. It excludes the bid/ask spread, any premium or discount to NAV, brokerage commissions and taxes. VIG’s ratio has been listed as low as 0.04% and as high as 0.06% in older Vanguard documents; the 0.04% figure is from the current prospectus.

Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.

SCHD’s 3.12% yield reflects a short list of mature, cash-rich companies: 20.0% consumer staples, 19.2% health care and 15.4% energy. VIG requires a long record of dividend growth and drops the highest-yielding quarter of eligible stocks, which lets in lower-yielding growers such as Microsoft, Apple and Broadcom. Its 30-day SEC yield was 1.43% on Oct 31, 2026.

The same mix shows in returns. VIG led in 2023, 2024 and 2025 and over 3, 5 and 10 years to Sep 30, 2026, while SCHD held up better in 2022 and led over the latest year. Vanguard reported that health care (+24.8%) was the top contributor to its index in the 12 months to Sep 30, 2026. Sector tilt is the simplest explanation, not proof: leadership can reverse, and a high yield is not a promise of higher total return. Read yield vs total return before choosing on yield alone.

Start with the job you want the fund to do. If you want cash flow now, SCHD’s 3.12% SEC yield is more than double VIG’s 1.43%, and on a $100,000 balance the last four payouts imply roughly $2,970 a year for SCHD against $1,540 for VIG at recent prices. If you want a portfolio that grows its income over time and you are reinvesting, VIG’s broader list and lower fee may fit better, though neither fund guarantees dividend growth.

Next, check what you already own. VIG’s 333 holdings are almost all inside broad U.S. index funds, so adding it to a total-market fund mostly increases your tilt toward companies with long dividend-growth streaks. SCHD’s 102 holdings overlap less with a broad index and concentrate your money in staples, health care and energy.

• Step 1 · Goal: income today (SCHD) or breadth and growth (VIG).
• Step 2 · Overlap: compare each fund with your existing index funds using the Diversification Calculator.
• Step 3 · Sectors: accept a defensive and energy tilt (SCHD) or a technology and financials tilt (VIG).
• Step 4 · Cost: VIG saves $2 a year per $10,000, which is small next to the yield gap.
• Step 5 · Account: consider how dividends are taxed in your account type.

Many investors hold both to balance the two screens. The funds share about 17% of their weight, so owning both does diversify sector exposure, but the two still move together (correlation about 0.93). Size each position against your whole portfolio rather than against each other.

SCHD and VIG are U.S.-listed and trade in U.S. dollars, so buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost on both entry and exit. Currency moves also change your return in Canadian dollars even if the funds are flat in U.S. dollars.

U.S. dividends paid to Canadian residents can be subject to U.S. withholding tax, generally 15% under the Canada-U.S. tax treaty. Registered accounts are treated differently: an RRSP is generally exempt from that withholding on U.S. dividends, while a TFSA is not. In a taxable account the withheld amount may be claimable through the foreign tax credit. Because SCHD yields more, the withholding in dollar terms is larger on a given balance.

Canadians holding U.S.-listed assets above a modest threshold may also face U.S. estate tax exposure, which treaty relief can reduce. This is general education, not tax advice; confirm the rules for your situation with a cross-border tax professional. For fund selection, the comparison above applies equally: income today (SCHD) against breadth and dividend growth (VIG).

Both funds invest in U.S. stocks and pay quarterly. SCHD paid only ordinary income in its latest eight distributions, with no capital gains distribution; VIG’s capital gains history was not captured, and its turnover is low (8.2%), which usually limits taxable distributions. U.S. taxpayers may see some dividends taxed at lower qualified rates if holding-period rules are met.

Schwab’s after-tax return for SCHD to Sep 30, 2026 was 21.86% over one year before selling shares. For Canadian account types and withholding tax, see the Canadian section above. Confirm the rules for your account with a tax professional, and read how to build an ETF portfolio.

Investors comparing SCHD and VIG often also look at iShares Core Dividend Growth (DGRO), Vanguard High Dividend Yield (VYM), iShares Core High Dividend (HDV) and ProShares S&P 500 Dividend Aristocrats (NOBL). See SCHD vs DGRO and SCHD vs VTI. Broad funds such as VTI and VOO already hold many of the same companies, so check overlap before adding a dividend fund to a core portfolio. See every dividend fund side by side on the Dividend ETFs page.

Is SCHD or VIG better?

Neither is better for everyone. SCHD pays a higher yield (3.12% SEC yield on Nov 5, 2026 against 1.43% for VIG on Oct 31) and led over the latest year. VIG costs less (0.04% vs 0.06%), holds 333 stocks against 102, and led over 3, 5 and 10 years to Sep 30, 2026. The right fund depends on whether you value income today or breadth and dividend growth.

Which pays the higher dividend yield, SCHD or VIG?

SCHD. Its 30-day SEC yield was 3.12% (Nov 5, 2026) and its trailing distribution yield 3.24% (Sep 30). VIG’s SEC yield was 1.43% (Oct 31) and 1.60% (Sep 30), with a trailing yield of about 1.49%. VIG pays more dollars per share only because its share price is much higher.

What are the expense ratios of SCHD and VIG?

SCHD’s total expense ratio is 0.06%, or $6 a year per $10,000. VIG’s is 0.04% per Vanguard’s current prospectus, or $4 a year per $10,000. Older Vanguard documents showed higher figures for VIG, so check the latest prospectus.

How much do SCHD and VIG overlap?

About 17% by weight in one tracker’s April 2026 estimate, with sector overlap near 70%. No stock appears in both top-ten lists. Other tools report different overlap figures because dates and methods differ.

What index does each ETF track?

SCHD tracks the Dow Jones U.S. Dividend 100 Index. VIG tracks the S&P U.S. Dividend Growers Index. Both are passive and listed on NYSE Arca.

What are the top holdings of SCHD and VIG?

SCHD’s largest positions on Nov 5, 2026 were Procter & Gamble (4.45%), Home Depot (4.32%), Texas Instruments (4.29%), Coca-Cola (4.27%) and Amgen (4.09%). VIG’s largest on Sep 30, 2026 were Microsoft (4.9%), Apple (4.9%), Broadcom (4.3%), Eli Lilly (4.1%) and JPMorgan Chase (3.9%).

Which has performed better, SCHD or VIG?

It depends on the period. To Sep 30, 2026, SCHD returned 23.36% over one year against 9.77% for VIG, while VIG led over 3 years (16.51% vs 15.44% a year), 5 years (10.72% vs 9.48%) and 10 years (12.86% vs 12.44%). VIG also led in calendar 2023, 2024 and 2025. Past performance does not guarantee future results.

Which grew its dividend faster?

The last four SCHD payouts total $1.054 per share, about 2.0% above the prior four. VIG’s last four total $3.646, about 2.7% above the prior four. In calendar 2025, both rose about 5.3% over 2024. Short windows are noisy and past growth does not guarantee future growth.

How do SCHD and VIG differ by sector?

At Sep 30, 2026, SCHD was 20.0% consumer staples, 19.2% health care and 15.4% energy. VIG was 26.7% technology, 21.0% financials and 18.6% health care, with 3.6% in energy.

Can I own both SCHD and VIG?

You can. They share about 17% of their weight and no top-ten stock, so owning both changes your sector exposure, though they still tend to move together (correlation about 0.93). Check your combined exposure with a diversification calculator and size positions against your whole portfolio.

Which is less volatile, SCHD or VIG?

VIG on the measures captured: three-year standard deviation of 10.33% against 13.75% for SCHD at Sep 30, 2026. In the worst decline of the last decade, SCHD fell about 33.4% and VIG about 31.7% (BestETF).

Are SCHD and VIG suitable for Canadian investors?

Both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and may face U.S. withholding tax on dividends. Treatment differs across TFSA, RRSP and taxable accounts. This is general education, not tax advice; confirm with a tax professional.

Third-party sources

ETF Savant · Optimized Portfolio · BestETF · Yahoo Finance · TotalRealReturns · Wisesheets · StockAnalysis.

Methodology and limits

• SCHD figures come from Schwab’s fund page (Nov 5–6, Sep 30 and Oct 31, 2026). VIG figures come from Vanguard’s fact sheet and investment profile (Sep 30, 2026) and Vanguard’s fund page (Nov 5, 2026).
• Top-ten holdings are Schwab (Nov 5) for SCHD and Vanguard (Sep 30) for VIG, so dates differ by five weeks.
• Overlap of about 17% is a weight measure from Optimized Portfolio (Apr 16, 2026); other trackers differ. Sector overlap and correlation are from ETF Savant with no stated window.
• Calendar-year returns for SCHD (TotalRealReturns) and VIG (Yahoo Finance) come from two sources; VIG 2021 was not captured.
• Growth of $10,000 is derived from each issuer’s annualized NAV returns; dollar values are approximate.
• Drawdowns are BestETF 10-year worst declines (third party). VIG net flows and beta were not captured.
• Index rules summarize provider descriptions; confirm eligibility rules, caps and rebalance dates in each prospectus.

Pathways, not rankings or recommendations.