SCHD narrows asset gap with VIG as dividend ETF performance diverges
Schwab’s dividend ETF reported a higher yield and stronger 2026 return than Vanguard’s dividend-growth fund, while remaining behind it in assets.
The Schwab US Dividend Equity ETF is closing the gap with the Vanguard Dividend Appreciation ETF in assets after substantially outperforming it in 2026. SCHD held $113.2 billion in net assets as at 3 September, compared with $130.9 billion for VIG, according to Morningstar data cited in the comparison.
SCHD’s reported year-to-date return was 29.99%, against 11.54% for VIG and 13.18% for the S&P 500. Both funds carried three-star Morningstar ratings. SCHD also offered a reported yield of 3.1%, more than double VIG’s 1.5%.
The funds follow different selection methods. SCHD tracks the Dow Jones US Dividend 100 Index, screening for cash flow to total debt, return on equity, dividend yield and five-year dividend growth. Companies must have paid dividends for 10 consecutive years.
VIG tracks the S&P US Dividend Growers Index, which requires at least 10 consecutive years of dividend increases. It excludes the highest-yielding quarter of qualifying companies, a method intended to reduce exposure to potential yield traps.
A recent SCHD reconstitution increased its healthcare exposure and reduced energy exposure. VIG, meanwhile, has greater exposure to technology and financial services, reflecting its focus on dividend growth and broader diversification.
The reported performance figures are backward-looking and may change. The asset race does not establish which fund will lead in future, while the differing yields reflect separate investment approaches: SCHD places greater emphasis on current income and value, while VIG is oriented towards longer-term dividend growth.
