SCHD vs VTI: Side-by-Side ETF Comparison
Not sure whether to invest in SCHD or VTI? This in-depth comparison breaks down performance, dividend yield, risk, and portfolio composition to help you choose the right ETF for your financial goals.
Which one is better? SCHD focuses on high-quality, dividend-paying U.S. stocks, while VTI offers total market exposure with stronger growth potential across all market caps. Choose SCHD for income and stability, or VTI for broad diversification and long-term capital appreciation.
Table of Content
ETF Issuers & Investment Objective
- SCHD: Launched by Charles Schwab in 2011, the Schwab U.S. Dividend Equity ETF (SCHD) aims to track the performance of high dividend-yielding U.S. stocks with a proven history of consistent payouts. The fund selects companies based on fundamental strength, focusing on quality and sustainability of dividends making it a go-to option for income-focused investors seeking stability and value.
- VTI: Introduced by Vanguard in 2001, the Vanguard Total Stock Market ETF (VTI) is designed to capture the entire investable U.S. equity market. It tracks a broad index that includes large-, mid-, small-, and micro-cap stocks, offering investors comprehensive diversification across all sectors and company sizes in a single low-cost fund.
Annual & Cumulative Returns
| Period | SCHD | VTI | Difference |
|---|---|---|---|
| YTD (2025) | −1.99% | +2.82% | +4.81% |
| 1-Year | +5.90% | +14.06% | +8.16% |
| 3-Year Returns | +4.41% | +16.73% | +12.32% |
| 5-Year Returns | +11.24% | +14.66% | +3.42% |
| 10-Year Returns | +10.91% | +12.40% | +1.49% |
When comparing returns across all major timeframes, VTI holds a significant lead over SCHD. This performance gap reflects VTI’s broader exposure to the total U.S. stock market, especially growth-heavy sectors like tech, which surged over the past decade. SCHD, on the other hand, prioritizes dividend-paying companies often mature, value-oriented firms resulting in more modest capital appreciation but steadier income potential.
Risk Metrics
| Metric | SCHD | VTI |
| 1-Year Volatility | 13.95% | 12.80% |
| 3-Year Volatility | 16.01% | 17.10% |
| 3-Year Sharpe Ratio | 0.02 | 0.57 |
While SCHD and VTI exhibit similar volatility levels over the past three years, the contrast in Sharpe ratios is telling: VTI has delivered far better returns per unit of risk. This is largely because SCHD’s performance has been more uneven, due to sector concentrations in areas like energy and consumer defensive stocks, which tend to be more reactive to macroeconomic shifts like inflation and rate hikes.
- Volatility reflects the degree of price fluctuations; higher volatility often correlates with greater risk and potential returns.
- Sharpe Ratio measures risk-adjusted returns, where higher ratios indicate more favorable returns for the risk assumed.
Dividend Yield & Growth
| Metric | SCHD | VTI |
| Dividend Yield | ~4.27% | ~1.52% |
| Frequency | NA | Quarterly |
SCHD shines when it comes to yield, offering a dividend rate nearly triple that of VTI. This reflects its core strategy of targeting high-yielding equities with strong fundamentals. In contrast, VTI’s lower yield is a byproduct of its growth orientation and heavier tech exposure sectors that often reinvest earnings instead of paying dividends.
Fees & Liquidity
| Metric | SCHD | VTI |
| Expense Ratio | 0.06% | 0.03% |
| Avg Bid-Ask Spread | N/A | N/A |
| Avg Daily Volume (Est) | N/A | N/A |
VTI edges out SCHD with a lower expense ratio of just 0.03%, which makes it one of the most cost-efficient ETFs on the market. SCHD is still competitively priced, but slightly higher fees and less information on liquidity metrics may impact large-volume traders. For most long-term investors, however, both remain excellent low-cost options.
Explanation:
- Expense Ratio is the annual fee taken by the fund manager, expressed as a % of your investment.
- Bid-Ask Spread is the difference between the buying and selling price. Smaller spreads mean lower transaction costs.
ETF Composition: Asset Classes
| Asset Class | SCHD (%) | VTI (%) |
| US Stocks | 99.27 | 98.89 |
| Non-US Stocks | 0.63 | 0.56 |
| Cash | 0.10 | 0.55 |
| Bonds/Other | 0.00 | 0.00 |
Both ETFs are nearly 100% equity-focused, but VTI includes a wider universe of stocks ranging from mega-caps to micro-caps whereas SCHD filters for U.S. dividend payers. The small difference in cash allocation likely stems from rebalancing or pending distributions in VTI, whereas SCHD tends to stay fully invested.
Regional Allocation
| Region | SCHD (%) | VTI (%) |
| North America | 99.37 | 99.57 |
| Europe Developed | 0.00 | 0.30 |
| United Kingdom | 0.55 | 0.03 |
| Other | 0.08 | 0.20 |
Geographically, both funds are overwhelmingly U.S.-centric, with minimal foreign exposure. VTI includes a broader slice of the total market, leading to a small allocation to international stocks via cross-listed companies. SCHD’s strict U.S. dividend mandate ensures its portfolio remains nearly exclusively domestic.
Sector Weights
| Sector | SCHD (%) | VTI (%) |
| Technology | 11.07 | 30.13 |
| Financial Services | 8.76 | 14.33 |
| Consumer Cyclical | 9.79 | 10.36 |
| Healthcare | 14.57 | 11.15 |
| Communication Services | 4.86 | 8.74 |
| Industrials | 11.06 | 8.86 |
| Consumer Defensive | 19.35 | 5.82 |
| Others (Energy, Real Estate, etc.) | 20.54 | 10.61 |
The sector allocations underline the philosophical divide between the two. SCHD is heavily tilted toward consumer defensive, industrials, and energy sectors industries known for consistent dividend payouts. VTI, meanwhile, leans strongly into tech and communication services, which account for nearly 40% of its portfolio, driving growth but lowering yield.
Top 10 Holdings
| Rank | SCHD Company | SCHD (%) | VTI Company | VTI (%) |
|---|---|---|---|---|
| 1 | The Coca-Cola Company | 4.29 | Apple Inc | 5.94 |
| 2 | Verizon Communications Inc | 4.28 | Microsoft Corporation | 5.47 |
| 3 | Cisco Systems Inc | 4.28 | NVIDIA Corporation | 4.70 |
| 4 | Lockheed Martin Corporation | 4.23 | Amazon.com Inc | 3.27 |
| 5 | Altria Group | 4.22 | Meta Platforms Inc. | 2.24 |
| 6 | Texas Instruments Incorporated | 4.13 | Berkshire Hathaway Inc | 1.76 |
| 7 | ConocoPhillips | 4.07 | Alphabet Inc Class A | 1.71 |
| 8 | Home Depot Inc | 4.05 | Broadcom Inc | 1.68 |
| 9 | Chevron Corp | 3.85 | Tesla Inc | 1.44 |
| 10 | Amgen Inc | 3.84 | Eli Lilly and Company | 1.43 |
A glance at the top holdings shows SCHD’s emphasis on high-dividend, low-volatility blue chips like Coca-Cola and Verizon, while VTI allocates more weight to high-growth giants like Apple, Microsoft, and Nvidia. This difference reinforces SCHD’s income focus versus VTI’s growth mandate across all market caps.
Valuation & Growth Metrics
Valuation Ratios
| Metric | SCHD | VTI |
| P/E Ratio (Forward) | 13.73 | 20.40 |
| Price/Book | 2.83 | 3.66 |
| Price/Sales | 1.43 | 2.42 |
| Price/Cash Flow | 8.77 | 13.15 |
| Dividend Yield | 4.27% | 1.52% |
SCHD trades at more attractive valuation multiples its P/E, P/B, and P/CF ratios are markedly lower than VTI’s. This reflects investor expectations: SCHD’s holdings are often mature businesses with slower growth, while VTI holds higher-multiple tech names with robust forward-looking projections that justify their premium pricing.
Explanation:
- P/E Ratio = Price divided by earnings. Indicates how expensive a fund is relative to profits.
- Price/Book = Price vs book value (assets minus liabilities).
- Price/Sales = Price relative to total revenue.
- Price/Cash Flow = Price relative to how much cash the companies generate.
Growth Expectations
| Metric | SCHD | VTI |
| Long-Term Earnings Growth | 6.43% | 10.01% |
| Historical Earnings Growth | −1.70% | 7.93% |
| Sales Growth | 4.30% | 6.92% |
| Cash Flow Growth | −2.40% | 6.26% |
| Book Value Growth | 6.36% | 7.10% |
VTI decisively outpaces SCHD across every growth metric, from earnings to sales to cash flow. This outcome is unsurprising given VTI’s inclusion of dynamic growth companies and startups, whereas SCHD focuses on established, dividend-paying firms whose growth is typically steady but limited.
Which ETF Fits Your Portfolio - SCHD vs VTI?
The choice between SCHD and VTI ultimately depends on your investment goals and risk appetite. If you're seeking steady income through reliable dividend payouts and prefer a portfolio anchored in mature, fundamentally strong U.S. companies, SCHD offers a compelling value. It’s particularly well-suited for income-oriented investors, retirees, or those looking to buffer volatility with consistent cash flow.
On the other hand, if you want comprehensive exposure to the entire U.S. stock market including large-, mid-, small-, and micro-cap stocks VTI provides unmatched diversification and long-term growth potential. Its heavy allocation to tech and innovation-driven sectors has historically translated to stronger capital appreciation, albeit with a lower yield.
In short, SCHD fits a dividend-focused, conservative strategy, while VTI aligns with growth-focused, long-term investing. Many investors even choose to hold both to balance income and growth within a well-rounded portfolio.