SCHD Offers Higher Yield and Lower Volatility Than VIG

A wide yield gap changes the cash investors must hold for income and reshapes which fund suits income versus dividend‑growth goals.

Overview

SCHD’s trailing 12‑month dividend yield is about 3.20% while VIG’s is about 1.50%, a difference that doubles the income produced per dollar invested in SCHD.
Recent total returns show SCHD outperforming over the past year while VIG has delivered stronger five‑year growth, reflecting a tradeoff between near‑term income and longer‑term appreciation.
Vanguard’s fund carries a slightly lower expense ratio at 0.04% versus SCHD’s 0.06%, so cost is a small edge for VIG but does not close the yield gap.
The ETFs follow different indexes: SCHD uses a multi‑factor quality screen focused on high‑payout firms, while VIG requires at least 10 years of consecutive dividend growth, which produces different sector tilts and top holdings.
For investors this means SCHD is generally more attractive for those seeking higher cash income and a smoother ride, while VIG suits investors who prioritize dividend growth and broader tech exposure.