SCHD vs. VOO & VTI – Schwab Dividend vs. Vanguard Total Market

SCHD is a popular dividend ETF from Schwab. VOO and VTI are broad market index funds from Vanguard for the S&P 500 and total U.S. stock market. Let’s compare them.

// TIMESTAMPS:

00:00 - Intro
00:11 - Methodologies
02:01 - Sector Composition
02:48 - Performance
02:55 - AUM and Fees
03:21 - Conclusion
03:57 - Outro

// SUMMARY:

• SCHD is a popular dividend fund from Schwab.
• VOO and VTI are very popular broad U.S. stock funds from Vanguard.
• SCHD tracks the Dow Jones U.S. Dividend 100 Index. VOO tracks the S&P 500 Index. VTI tracks the CRSP US Total Market Index.
• As such, SCHD is solely U.S. dividend stocks, VOO is U.S. large-cap stocks, and VTI is essentially VOO plus small- and mid-cap stocks.
• VOO and VTI include REITs; SCHD does not.
• VOO and VTI are much more diversified than SCHD.
• VOO and VTI outperformed SCHD going back to SCHD’s inception in 2011. Historical performance of VTI and VOO has been nearly identical.
• VOO and VTI are more popular and slightly cheaper than SCHD.
• SCHD is likely unsuitable as a core holding in a well-diversified investment portfolio.

#investing #stockmarket #etfs

// INVEST

// SOCIAL

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[will]

I use SCHD! I believe long term (with dividends reinvested) it will outperform both VTI/VOO.

[Helpertin]

At present SCHD is significantly cheaper and easier to get full shares of then VOO or VTI, though all 3 of these are good ETFs. For a new investor that has income and dividend growth in mind SCHD seems like a good way to enter the market more conservatively until they feel better about putting increasing sums over time.

[allenn]

I have VTI & SCHD in my portfolio 🤑👍👍

[noelroman]

Is it okay to invest in SCHD and VTI at the same time? I'm always worried that they will just overlap each other and it's the same thing LOL.

[alphaexpress]

Will you do a video on your ginger ale portfolio?

[TJ-Stackin]

Not sure but from my calculations and back test SCHD outperformed when dividends were reinvested. But regardless I am heavily invest in VTI/ VOo and FNILX. I like all of them vti and schd

[seanharrington]

Fantastic content and appreciate the internal links. Knowledge is power and thank you for sharing !!

[captainnitrousx]

I am retired and can only invest in a taxable account which I hold VTI and a small portion of VUG. I would like to add SCHD but noticed it has a large turnover percentage. Does anyone have experience of holding SCHD in a taxable account?

[lingguo]

Very helpful video, thanks! I’d like to see your comparison of SCHX vs VOO.

[akin]

Huh? SCHD has outperformed VTI since inception when you include dividends reinvested according to portfolio visualizer. Edit: November 2011 to July 2022.

I do agree that it isn't a good primary core holding. Maybe something to throw extra cash into after maxing out your tax protected accounts.

[jakeh]

Would love to see some more videos on emerging markets from you. Upon doing my own research, I didn’t realize that EM beat developed markets starting in the 80’s 😳

[XDividendDad]

Great video, but I don't think your video included dividends reinvested :)