SCHD vs. VIG - Schwab Dividend ETF or Vanguard Dividend Growth ETF?

Опубликовано: 23 Март 2025
на канале: Optimized Portfolio

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Two popular dividend-focused ETFs are the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Dividend Appreciation ETF (VIG), but they differ more than you may realize. Let's compare them.

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// TIMESTAMPS:

00:00 - Intro
00:12 - SCHD ETF Methodology
00:37 - VIG ETF Methodology
01:02 - Factors and Yield
01:18 - Sector Composition of SCHD and VIG
01:41 - Performance Backtest of SCHD vs. VIG
02:02 - Conclusion

// SUMMARY:

SCHD and VIG are two popular dividend-oriented ETFs from Schwab and Vanguard, respectively.
SCHD launched in 2011 and VIG launched in 2006.
Both are very affordable with the same fee of 0.06%.
Both are very popular and have significant AUM, but VIG is more popular than SCHD.
SCHD looks for high-quality companies with a sustainable dividend via profitability screens.
VIG is comprised of dividend growth stocks, companies with a historically increasing dividend over the past 10 years.
Both funds exclude REITs.
Since SCHD's inception in 2011, it has delivered a higher return than VIG with slightly higher volatility.
These two funds have delivered the same risk-adjusted return.
As we'd probably expect, SCHD delivers slightly greater exposure to equity risk factors like Value, Profitability, and Investment.
Dividend investing on the whole is largely rooted in the Value, Profitability, and Investment factors, with somewhat naive exposure to them.
I created a dividend-focused portfolio that incorporates both of these funds.

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#dividendinvesting #dividendgrowthinvesting #dividends

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