VOO vs SCHD
VOO is a broad, market-cap-weighted S&P 500 fund. SCHD is built specifically around dividend-paying companies. They aren't really competing for the same job — here's how they differ.
Written by Muhammad Hamza
VOO
S&P 500 — broad market-cap weighting
SCHD
Dividend-quality screen and weighting
| VOO | SCHD | |
|---|---|---|
| Issuer | Vanguard | Charles Schwab |
| Expense ratio | 0.03% | 0.06% |
| Holdings | ~516 | ~100 |
| Inception | Sep 7, 2010 | Oct 20, 2011 |
| Dividend frequency | Quarterly | Quarterly |
Sources: each fund's issuer page (Vanguard, State Street/SSGA, Invesco, Charles Schwab, BlackRock/iShares), cross-checked against StockAnalysis.com. Holdings counts are approximate and change daily; expense ratios can change — verify current figures on the issuer's own page before investing.
What each fund tracks
VOO tracks the S&P 500 index, holding roughly 500 large U.S. companies weighted simply by market capitalization — bigger companies make up a bigger share of the fund. SCHD tracks the Dow Jones U.S. Dividend 100 Index, which first screens for U.S. companies with a consistent history of paying dividends, then weights the ones that pass by a combination of fundamental factors rather than size alone. The selection process itself is the core difference — VOO takes the whole large-cap market, SCHD takes a specific subset chosen for dividend characteristics.
| VOO | SCHD | |
|---|---|---|
| Provider | Vanguard | Charles Schwab |
| Tracks | S&P 500 Index | Dow Jones U.S. Dividend 100 Index |
| Selection approach | Market-cap weighted, broad | Screened for dividend history and quality |
| Primary focus | Broad market growth | Dividend income and quality |
What's actually different
Because SCHD's selection process specifically favors established, profitable, dividend-paying companies, it tends to look and behave differently from VOO — often with a different sector mix and typically a higher dividend yield, since that's what its index is built to find. VOO's broader, unscreened approach means it also holds fast-growing companies that pay little or no dividend, which SCHD's criteria would tend to exclude. Neither approach is inherently better — they're answering different questions.
As of September 28, 2026, VOO charges a 0.03% expense ratio versus SCHD's 0.06%. Both are low compared to most actively managed funds; expense ratios and yields for both can change over time, so check current figures directly with Vanguard and Schwab before comparing.
The yield difference, in dollars
As of September 28, 2026, VOO's trailing 12-month dividend yield was about 1.05%, versus roughly 3.17% for SCHD — about 3x higher. On a flat $10,000 investment held for a year with no price change and no reinvestment, that's the difference between about $105 and $317 in dividend income. This isn't a projection — real yields move with each fund's price and payouts, and a higher yield doesn't by itself mean a higher total return, since SCHD's dividend focus and VOO's broader growth exposure can produce very different price appreciation over time. Model your own numbers, including reinvestment, in the dividend calculator.
Which one fits your plan
If you want broad exposure to the overall U.S. large-cap market without a specific tilt, VOO fits that goal. If dividend income and companies with a track record of consistent payouts are a priority for you, SCHD is built specifically around that. Many long-term investors use funds like these for different roles within the same portfolio, rather than treating the choice as either/or. This page is educational, not a recommendation.
Curious about SCHD's dividend income specifically? Try our dividend calculator with your own yield assumption — it works for SCHD or any other fund — or use the VOO calculator to project VOO's growth on its own.