SCHD vs. VIG: Should Income Investors Favor Dividend Yield or Growth Potential?
Compare portfolio strategies, sector weights, and risk profiles to see how these two leading dividend ETFs stack up for long-term investors.
Overview
The Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) provides a significantly higher dividend yield and lower price volatility, while the Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) offers a lower expense ratio and greater exposure to high-growth technology stocks.
Income-focused investors often weigh these two heavyweights for their ability to deliver steady cash flow and capital appreciation. While VIG tracks the S&P U.S. Dividend Growers Index, emphasizing dividend consistency, SCHD emulates the Dow Jones U.S. Dividend 100 Index, focusing on quality and yield sustainability. This comparison explores how these differing methodologies impact long-term returns and risk.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Source
Originally published at www.fool.com.