VIG vs. SCHD

Last updated Aug 4, 2026

VIG (Vanguard Dividend Appreciation ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both Dividend funds - VIG tracks the S&P U.S. Dividend Growers Index while SCHD tracks the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, VIG returned 12.98%/yr vs 12.70%/yr for SCHD. Their correlation of 0.89 means they have usually moved in the same direction. VIG charges 0.04%/yr vs 0.06%/yr for SCHD.

Performance

VIG vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Dividend Appreciation ETF (VIG) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VIG achieves a 10.16% return, which is significantly lower than SCHD's 24.36% return. Both investments have delivered pretty close results over the past 10 years, with VIG having a 12.98% annualized return and SCHD not far behind at 12.70%.

VIG

• 1D: 0.41%
• 1M: 0.64%
• 6M: 7.02%
• YTD: 10.16%
• 1Y: 19.59%
• 3Y*: 15.82%
• 5Y*: 10.56%
• 10Y*: 12.98%
• ALL TIME*: 10.24%

SCHD

• 1D: 0.27%
• 1M: 3.61%
• 6M: 13.71%
• YTD: 24.36%
• 1Y: 31.89%
• 3Y*: 14.88%
• 5Y*: 9.66%
• 10Y*: 12.70%
• ALL TIME*: 13.40%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SCHD Schwab U.S. Dividend Equity ETF	$806.58M	$724.91M	$690.35M
VIG Vanguard Dividend Appreciation ETF	$232.65M	$242.03M	$260.72M

VIG vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIG Vanguard Dividend Appreciation ETF	10.16%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.08%	22.22%
SCHD Schwab U.S. Dividend Equity ETF	24.36%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between VIG and SCHD is 0.58, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.58
Correlation (3Y) Balances recent behavior with more history.	0.75
Correlation (5Y) Shows whether the relationship held over a longer period.	0.84
Correlation (10Y) Provides a long-term view across more market conditions.	0.86
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.89

Over the past year, the correlation between VIG and SCHD has dropped to 0.58 - well below their long-term average of 0.89, suggesting their price drivers have been diverging.

VIG vs. SCHD - Sectors Allocation Comparison

Sectors	VIG	SCHD
Technology	26.9%	12.7%
Financial Services	20.3%	9.9%
Healthcare	17.8%	20.8%
Industrials	11.9%	7.8%
Consumer Defensive	9.2%	20.6%
Consumer Cyclical	4.5%	7.7%
Basic Materials	3.4%	1.2%
Utilities	3.0%	0.1%
Energy	3.0%	14.1%
Communication Services	0.5%	6.2%
Real Estate	-	-

Return for Risk

VIG vs. SCHD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VIG

VIG Risk / Return Rank: 79
VIG Sharpe Ratio Rank: 83
VIG Sortino Ratio Rank: 84
VIG Omega Ratio Rank: 82
VIG Calmar Ratio Rank: 71
VIG Martin Ratio Rank: 78

SCHD

SCHD Risk / Return Rank: 95
SCHD Sharpe Ratio Rank: 96
SCHD Sortino Ratio Rank: 96
SCHD Omega Ratio Rank: 94
SCHD Calmar Ratio Rank: 97
SCHD Martin Ratio Rank: 93

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VIG vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Dividend Appreciation ETF (VIG) and Schwab U.S. Dividend Equity ETF (SCHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VIG	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.96	2.90	-0.95
Sortino ratio: Return per unit of downside risk	2.82	4.49	-1.68
Omega ratio: Gain probability vs. loss probability	1.35	1.52	-0.17
Calmar ratio: Return relative to maximum drawdown	2.49	6.94	-4.46
Martin ratio: Return relative to average drawdown	10.11	17.53	-7.41

VIG vs. SCHD - Sharpe Ratio Comparison

The current VIG Sharpe Ratio is 1.96, which is lower than the SCHD Sharpe Ratio of 2.90. The chart below compares the historical Sharpe Ratios of VIG and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VIG vs. SCHD - Drawdown Comparison

The maximum VIG drawdown since its inception was -46.81%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VIG and SCHD.

Drawdown Indicators

	VIG	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-46.81%	-33.37%	-13.44%
Max Drawdown (1Y) Largest decline over 1 year	-7.91%	-4.61%	-3.30%
Max Drawdown (3Y) Largest decline over 3 years	-14.95%	-16.13%	+1.18%
Max Drawdown (5Y) Largest decline over 5 years	-20.39%	-16.85%	-3.54%
Max Drawdown (10Y) Largest decline over 10 years	-31.72%	-33.37%	+1.65%
Current Drawdown Current decline from peak	-0.66%	-0.97%	+0.31%
Average Drawdown Average peak-to-trough decline	-5.47%	-3.29%	-2.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.94%	1.82%	+0.12%

Volatility

VIG vs. SCHD - Volatility Comparison

The current volatility for Vanguard Dividend Appreciation ETF (VIG) is 2.57%, while Schwab U.S. Dividend Equity ETF (SCHD) has a volatility of 3.82%. This indicates that VIG experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIG	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.57%	3.82%	-1.25%
Volatility (6M) Calculated over the trailing 6-month period	7.62%	7.99%	-0.37%
Volatility (1Y) Calculated over the trailing 1-year period	10.08%	11.06%	-0.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.20%	14.39%	-0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.02%	16.73%	-0.71%

VIG vs. SCHD - Expense Ratio Comparison

VIG has a 0.04% expense ratio, which is lower than SCHD's 0.06% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VIG vs. SCHD - Dividend Comparison

VIG's dividend yield for the trailing twelve months is around 1.49%, less than SCHD's 3.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.12%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
VIG Vanguard Dividend Appreciation ETF	1.49%	1.62%	1.73%	1.88%	1.96%	1.55%	1.63%	1.71%	2.08%	1.88%	2.14%	2.34%

Frequently Asked Questions

Can I hold both VIG and SCHD in my portfolio?

VIG and SCHD have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIG or SCHD?

SCHD has higher volatility (3.82%) compared to VIG (2.57%). In terms of maximum drawdown, VIG dropped -46.81% vs SCHD's -33.37%.

Which ETF is better, VIG or SCHD?

On 10-year performance, VIG leads with 12.98% vs 12.70% for SCHD. On fees, VIG is cheaper at 0.04% per year. On volatility, VIG has been the lower-risk option at 2.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIG or SCHD?

Over the 10-year period, VIG has performed better with a 12.98% return vs 12.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIG or SCHD?

VIG is cheaper with a 0.04% expense ratio, compared with 0.06% for SCHD.

Which ETF pays a higher dividend yield, VIG or SCHD?

SCHD has the higher dividend yield at 3.12%, compared with 1.49% for VIG.

What is the main difference between VIG and SCHD?

VIG tracks S&P U.S. Dividend Growers Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.04% for VIG and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.90 vs 1.96), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.