Most ETF comparisons are about choosing between two flavors of the same thing. SCHD vs VOO is not that comparison. These two funds don’t share a single top-10 holding. Their sector profiles are near-opposites. One yields 3.4%, the other 1.1%. One trades at a P/E of 16, the other at 28.
Over the past decade, VOO crushed SCHD in total return — roughly 14.8% vs 11.5% annualized, a gap of about $9,950 on a $10,000 investment. But in 2022, when the S&P 500 dropped 18%, SCHD lost just 3%. And SCHD’s dividend kept growing through it all — up 13.8% that year, up 16% through COVID.
The SCHD vs VOO question isn’t “which is better.” It’s “which problem are you solving?” Growth or income. Accumulation or distribution. Offense or defense. The answer depends entirely on where you are in your financial life.
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SCHD ETF Review · VOO ETF Review · JEPI vs SCHD · VYM vs SCHD · SCHD vs DGRO · QQQ vs VOO
SCHD vs VOO: Two Completely Different Portfolios
Unlike our VTI vs VOO comparison — where the funds overlap by 82% — SCHD and VOO are built from entirely different stock pools. Different indexes, different sectors, different philosophies.
SCHD · Dividend 100
Index: Dow Jones U.S. Dividend 100
Holdings: ~102 stocks
Fee: 0.06% · Yield: ~3.4%
P/E: ~16 · 10Y CAGR: ~11.5%
Strategy: Dividend quality + growth
Issuer: Charles Schwab · AUM: ~$75B
VOO · S&P 500
Index: S&P 500
Holdings: ~500 stocks
Fee: 0.03% · Yield: ~1.1%
P/E: ~28 · 10Y CAGR: ~14.8%
Strategy: Market-cap weighted index
Issuer: Vanguard · AUM: ~$632B
The core SCHD vs VOO trade-off is visible in two numbers: SCHD gives you 3× the income (3.4% vs 1.1%). VOO gives you faster total growth (14.8% vs 11.5%). SCHD trades at nearly half VOO’s valuation because it’s packed with value-oriented dividend stocks rather than high-growth tech names. For a full look at SCHD’s methodology, holdings, and dividend history, see our SCHD ETF Review.
The Sector DNA: Why Zero Overlap Matters
Most ETF pairs share the same top holdings in different proportions. SCHD and VOO don’t even play in the same sectors.
| Sector | SCHD | VOO |
|---|---|---|
| Technology | 9.7% | ~36% |
| Energy | 20.8% | ~3.5% |
| Consumer Defensive | 18.2% | ~6% |
| Healthcare | 15.3% | ~11% |
| Financials | 9.2% | ~14% |
| Industrials | 11.4% | ~8% |
VOO has ~36% in tech — NVIDIA, Apple, Microsoft, the mega-cap growth engines. SCHD has less than 10%, with Texas Instruments as its only major tech name. Instead, SCHD loads up on energy (Chevron, ConocoPhillips), consumer staples (Coca-Cola, Altria), and healthcare (Merck, Bristol-Myers Squibb).
This isn’t accidental. SCHD’s index requires at least 10 consecutive years of dividend payments. Most high-growth tech companies either don’t pay dividends or only recently started — Alphabet and Meta both initiated dividends in 2024, Amazon still doesn’t pay one. None qualify for SCHD.
The top 10 holdings make it concrete. SCHD: Lockheed Martin, Texas Instruments, Chevron, ConocoPhillips, Verizon, Bristol-Myers, Merck, Altria, Coca-Cola, Home Depot. VOO: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, Berkshire Hathaway, JPMorgan. Zero overlap. For a deeper look at VOO’s composition, see our VOO ETF Review.
SCHD vs VOO Performance: The Scoreboard and the Story
VOO wins 7 of the last 10 calendar years against SCHD. But the pattern matters more than the count.
Total returns including dividends. Sources: Morningstar, Schwab, Vanguard. Past performance does not guarantee future results.
In tech-driven rallies, the gap is brutal — in 2023, VOO returned 26.3% while SCHD managed just 4.6%, a 21.7-point difference. In 2024, the AI-fueled market continued to favor VOO by 16 points. Over the full decade, VOO compounded at ~14.8% vs SCHD’s ~11.5%.
But look at when SCHD wins. In 2022, SCHD lost just 3.2% while VOO cratered 18.2% — a 15-point swing in SCHD’s favor during the worst bear market since 2008. In 2016 (post-election value rotation), SCHD led by 4.3%. In 2021, SCHD edged VOO by a point when dividend stocks broadly outperformed.
SCHD vs VOO performance diverges sharply by market environment. Data as of early 2026.
The lesson: in the SCHD vs VOO matchup, SCHD doesn’t beat VOO often, but it tends to outperform during market stress — exactly when portfolio preservation matters most. For someone already living off their investments, avoiding that 18% drawdown is worth more than chasing an extra 3% in good years.
Risk metrics based on 10-year trailing data through early 2026. Max drawdown = largest peak-to-trough decline (both during COVID crash Feb–Mar 2020).
SCHD wins four of five risk metrics — shallower max drawdown, dramatically better 2022 performance, lower volatility, and lower beta. But VOO takes the Sharpe ratio because its higher returns more than compensate for the slightly higher risk. Put differently: SCHD is the smoother ride, VOO is the faster car. Both experienced similar COVID crashes (~30-34%), but 2022 revealed SCHD’s real defensive advantage — a 15-point cushion when rate hikes punished growth stocks. This is what makes combining them powerful.
📈 SCHD vs VOO — Live Price Comparison
💡 Two funds, zero shared holdings — opposite sector bets driving opposite performance in every market regime.
SCHD’s Dividend Growth Engine: Why 3.4% Is Just the Start
Most people see SCHD’s 3.4% yield and compare it to VOO’s 1.1%. That’s the starting point — but the growth rate matters more. SCHD has grown its dividend per share at roughly 9–11% annually for the past decade, meaning your income roughly doubles every 7 years. For how SCHD’s yield compares to other high-dividend options, see our VYM vs SCHD and JEPI vs SCHD breakdowns.
*Pre-split figures. SCHD did a 3-for-1 split in October 2024. Current post-split annual dividend is ~$0.99/share. Growth rates are unaffected by splits.
Look at 2020 and 2022: the stock market was falling apart, and SCHD’s dividend still grew — +16% and +13.8%. That’s what happens when a fund only holds companies with 10+ consecutive years of dividend payments. Coca-Cola, Pfizer, and Home Depot don’t stop paying because the market panics.
This creates a concept called “yield on cost.” Buy SCHD at a 3.4% yield, let the dividend grow at ~10% per year, and your effective yield crosses 5% in about 5 years, 8% in 10 years, and 13%+ in 15 years — on the same original dollars.
For investors building a portfolio they’ll eventually live off, that trajectory is the entire point of the SCHD vs VOO decision. If you’re comparing SCHD to other dividend-growth alternatives, our SCHD vs DGRO comparison examines how two different dividend growth methodologies stack up.
$100K in SCHD vs VOO: Your Future Income Stream
The income gap between SCHD and VOO starts noticeable and widens fast. This table shows annual dividend income over time — no additional contributions, no DRIP, just pure dividend growth on your original investment.
Assumptions: SCHD yield 3.4%, DGR 10%/yr (10-year historical CAGR). VOO yield 1.1%, DGR 6%/yr. No DRIP, no additional contributions. Past performance does not guarantee future results.
The $500K column tells the story. Today it pays $17,000 a year from SCHD. In 10 years, that same original investment pays $44,090 — a real income. In 20 years, $114,370. You haven’t sold a single share. VOO’s $500K pays $5,500 today, growing to $17,640 in 20 years. The income gap starts at 3× and expands to 6.5×.
⚠️ Important caveat
These projections assume SCHD maintains its historical dividend growth rate. Some years (2019, 2023) growth slowed to under 4%. SCHD’s index reconstitutes annually — top holdings change. Use these numbers directionally, not as a promise. And remember: VOO’s total return has been higher, which matters if you’re comparing total wealth rather than income.
The Power Combo: Hold Both SCHD and VOO
Here’s what the SCHD vs VOO debate often misses: these funds are not competitors — they’re complements. Because they share zero top-10 holdings and have opposite sector tilts, combining them provides real diversification. This is nothing like holding VOO and SPY, which are 99% identical.
A popular approach is the “growth + income barbell”: VOO as the growth engine, SCHD as the income anchor. Common splits run 60/40 to 80/20 VOO/SCHD, tilting toward more SCHD as retirement approaches. The combination gives you tech growth through VOO, stable dividends through SCHD, and automatic crash protection from SCHD’s defensive sector tilt. If you’re considering adding a growth-oriented component alongside VOO, our QQQ ETF Review covers the tech-heavy alternative.
SCHD vs VOO Fees: Noise, Not Signal
VOO charges 0.03%. SCHD charges 0.06%. On $100,000, that’s $30 vs $60 per year. Both are among the cheapest ETFs available. In a comparison where the total return gap is 3+ percentage points and the yield gap is 2.3 points, the 0.03% fee difference is irrelevant. For a detailed look at how fees compound, use the calculator below.
ETF Fee Impact Calculator
See How Expense Ratios Eat Into Your Returns
Total Fees Paid
Lower is betterSCHD vs VOO: The Life Stage Matrix
🚀 20s–30s · Accumulating
Lean VOO. You have time. You don’t need income yet. Maximize total return and let compounding run. Every reinvested dividend from VOO buys shares that grow faster.
⚖️ 40s · Transitioning
Start adding SCHD. Begin shifting 20–30% toward income. You’re still growing, but building the dividend base that will fund retirement is worth starting early. The 7-year doubling time rewards early allocation.
💰 50s · Pre-Retirement
50/50 or tilt SCHD. Downside protection matters now. A 15-point cushion in a crash year (like 2022) could mean the difference between retiring on schedule and working three more years.
🏖️ 60s+ · Distributing
Heavy SCHD. You need cash flow, not growth promises. A $500K SCHD position at 3.4% yield pays $17K/year today, growing to $44K in 10 years. Keep some VOO for long-term growth, but income is now the priority.
My portfolio is growth-focused right now — VOO at the core, no dividend tilt. With a stable income and a long runway to retirement, maximizing total return makes more sense than chasing yield I don’t need yet.
But the plan evolves. As I approach my late 40s, I’ll start layering in SCHD to build the dividend base I’ll eventually live off. The SCHD vs VOO decision isn’t an either/or — it’s a now/later. For how QQQ compares to VOO on the growth side of this equation, see our detailed breakdown.
Common Questions About SCHD and VOO
Is SCHD a good replacement for VOO?
Not a replacement — an alternative with a different purpose. SCHD and VOO share zero top-10 holdings and opposite sector profiles. Replacing VOO with SCHD means giving up significant tech exposure and potential growth in exchange for 3× the dividend income and better downside protection. Think of it as switching strategies, not swapping tickers.
Why did SCHD underperform so badly in 2023?
The 2023 rally was driven almost entirely by the “Magnificent Seven” tech stocks. SCHD holds none of them. When a narrow group of growth stocks drives the entire market, anything that doesn’t own them falls behind dramatically. SCHD returned 4.57% — still positive — but looked terrible next to VOO’s 26.32%.
Does SCHD’s higher yield make up for lower total returns?
Not in recent history. Even with reinvested dividends, VOO has outperformed SCHD by roughly 3% annually over the past decade. SCHD’s higher yield narrows the gap but doesn’t close it. However, for investors spending their dividends rather than reinvesting, SCHD’s income advantage is felt directly in monthly cash flow.
What is SCHD’s dividend growth rate?
SCHD has grown its dividend per share at roughly 9–11% per year over the past decade (10-year CAGR ~9.3%, 5-year CAGR ~11.2%). Even through COVID (2020: +16%) and the 2022 crash (+13.8%), dividends kept increasing. A 3.4% starting yield growing at 10% annually reaches an 8.8% yield-on-cost within 10 years.
Can I hold both SCHD and VOO?
Yes — and many investors recommend it. Because they share zero top holdings and have opposite sector tilts, they provide genuine diversification. A common approach is 60-80% VOO with 20-40% SCHD, adjusting the ratio based on age and income needs.
What about JEPI vs SCHD?
JEPI uses a covered call strategy for higher current yield (~7-8%) but sacrifices upside. SCHD holds actual dividend-growth stocks that can appreciate in price. SCHD is generally better for investors who want both income and long-term capital growth. JEPI suits pure income maximization at the cost of growth potential. See our full JEPI vs SCHD comparison for the detailed breakdown.
Did SCHD’s 3-for-1 stock split change anything?
SCHD executed a 3-for-1 forward split in October 2024. If you held 100 shares at ~$84, you now hold 300 shares at ~$28. The total value, yield percentage, and performance are unchanged — the split simply lowered the per-share price to make fractional investing more accessible. Dividend per share is now roughly one-third of pre-split levels, but total dividend income remains the same.
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