SCHD vs VDIGX
Schwab US Dividend Equity ETF vs Vanguard Dividend Growth Fund Investor Class
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | VDIGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.20% | |
| AUM | $108.7B | $35.5B | |
| Dividend Yield | 3.13% | 23.36% | |
| Holdings | 104 | 55 | |
| YTD Return | +27.93% | -1.31% | |
| 1Y Return | +30.06% | -12.26% | |
| 3Y Return (annualized) | +16.25% | -3.33% | |
| 5Y Return (annualized) | +10.03% | -3.31% | |
| Volatility (annualized) | 13.6% | 16.1% | |
| Max Drawdown | -33.4% | -32.6% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | May 15, 1992 |
SCHD vs VDIGX Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US). Over the past year SCHD returned +30.06% while VDIGX returned -12.26%. Year to date, SCHD is up 27.93% versus a loss of 1.31% for VDIGX.
Over three years, SCHD compounded at +16.25% per year against -3.33% for VDIGX; over five years the annualized figures are +10.03% and -3.31% respectively. Across the full 5-year window we track, SCHD has the edge at +11.56% annualized vs -3.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -33.4% for SCHD and -32.6% for VDIGX. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while VDIGX charges 0.20%. On a $10,000 position that is $6 vs $20 annually, a gap of $14 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 23.36% for VDIGX.
Holdings Overlap
SCHD and VDIGX share 10 holdings out of 137 unique holdings combined, representing a 20.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VDIGX?
SCHD has an expense ratio of 0.06% while VDIGX charges 0.20%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, SCHD or VDIGX?
Over the past year SCHD returned +30.06% vs -12.26% for VDIGX, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.56% vs -3.31% for VDIGX. Past performance does not guarantee future results.
Which is riskier, SCHD or VDIGX?
VDIGX has been the more volatile fund at 16.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VDIGX -32.6%.
Should I hold both SCHD and VDIGX?
SCHD and VDIGX have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VDIGX?
SCHD and VDIGX share 10 common holdings with a 20.4% weight overlap. Combined, they hold 137 unique securities.
Which pays a higher dividend, SCHD or VDIGX?
SCHD yields 3.13% while VDIGX yields 23.36%, so VDIGX currently pays the higher dividend yield.
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