SCHD vs VTV: Which ETF Is Better in 2026?
A metric-by-metric comparison of Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Morningstar Value ETF (VTV) — both Dividend Income / US Large Cap Value funds — using ETFValuer's daily-updated rankings.
Educational content — not financial advice. Data as of August 09, 2026. ~5 minute read.
The Verdict
SCHD (Dividend Income) and VTV (US Large Cap Value) sit in different corners of the market, so this is less a head-to-head than a question of what role each would play. They can be complements rather than alternatives — the metrics below show how differently the two have actually behaved.
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VTV scores higher: 84.6 (Grade B+) versus 82.7 for SCHD. That doesn't make SCHD a bad fund; it means VTV currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Head-to-Head: Every Metric
| SCHD | VTV | |
|---|---|---|
| Category | Dividend Income | US Large Cap Value |
| Expense ratio | 0.06% | 0.03% |
| Fund size (AUM) | $104.2B | $256.4B |
| Dividend yield | 3.13% | 1.36% |
| 1-year return | +31.73% | +29.35% |
| 3-year return | +52.56% | +65.36% |
| Volatility | 11.06% | 10.31% |
| Max drawdown | -16.12% | -14.52% |
| Sharpe ratio | 2.42 | 2.36 |
| ETFValuer score | 82.7 | 84.6 |
| Grade | B+ | B+ |
| Overall rank | #7 | #2 |
Bold marks the better value in each row. "Better" is directional only (e.g. lower cost, higher return) — it isn't a recommendation by itself. See the full methodology.
Cost
VTV is the cheaper fund, charging 0.03% a year versus 0.06% for SCHD — a gap of 0.03 percentage points (about $3.00/year on a $10,000 position) that compounds meaningfully over a multi-decade holding period. Because these funds do different jobs, though, cost alone shouldn't decide it — a cheaper fund that gives you the wrong exposure is a false economy. See the ETF Fee Calculator for the exact dollar impact at your investment size and horizon.
What SCHD's Fees Cost You
SCHD charges an expense ratio of 0.06% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
Performance & Risk
Over the trailing 3 years, VTV returned +65.36% versus +52.56% for SCHD — a gap of about 12.8 percentage points. On risk, VTV has held up better historically, with a shallower max drawdown (-14.52% vs. -16.12%). SCHD currently has the better risk-adjusted return (Sharpe ratio of 2.42 vs. 2.36), meaning it delivered more return per unit of volatility taken on.
How Closely Do They Track Each Other?
Over the last 3.0 years of daily returns (752 shared trading days), SCHD and VTV show a strong correlation of 0.888 — clearly related, with room to diverge. There is some genuine differentiation here, but not enough to call these complementary holdings. Pairing them mostly concentrates risk rather than spreading it.
| Measure | Value | What it means |
|---|---|---|
| Daily return correlation | 0.888 | Strong — clearly related, with room to diverge |
| R-squared | 78.8% | 78.8% of SCHD's daily moves are explained by VTV's |
| Tracking error (annualised) | 6.10% | Typical yearly spread between the two funds' returns |
| Annualised return over 3.0y | SCHD +15.18% · VTV +18.26% | VTV ahead by 3.07 points a year |
Correlation alone understates how far these can drift. Across every rolling 12-month window in the period, SCHD finished as much as +4.4 points ahead of VTV at the best extreme and -12.1 points at the worst — a 16.6-point spread between the best and worst year of relative performance. Two funds can correlate tightly day to day and still deliver very different outcomes over any single year you happen to hold them.
Calculated from daily total returns over the trailing 3-year window, recomputed every day this site refreshes. Correlation of 1.00 means the two funds moved in lockstep; 0.00 means their daily moves were unrelated.
Holdings Overlap
SCHD and VTV hold 2 of the same companies among their top 10 positions. Those shared names make up 7.4% of SCHD and 3.0% of VTV. That's modest duplication — the funds are mostly distinct at the top, so holding both can still add diversification.
| Shared Holding | SCHD Weight | VTV Weight |
|---|---|---|
| Chevron Corp | 3.83% | 1.61% |
| Procter & Gamble Co/The | 3.55% | 1.38% |
Compares the top 10 reported holdings from each fund's most recent SEC N-PORT-P filing, so it understates total overlap — funds tracking similar indexes overlap far more deeply than the top 10 alone can show. Search any company across all tracked funds with the Stock Overlap tool.
Which One Should You Pick?
Lean SCHD if…
- Current income matters to you — it yields 3.13% against 1.36%
Lean VTV if…
- You want the lower running cost — 0.03% vs 0.06%, about $3 a year less on a $10,000 position
- You weight recent results heavily — it returned 65.4% over 3 years against 52.6%
These two are not really substitutes, so "both, in some proportion" is often the right answer rather than picking one. Model the blend with the Portfolio Blender.
See it in a portfolio
SCHD is one of the twelve funds in the portfolio game. Start with 25% of a virtual $10,000 in it, build the rest however you like, and the builder shows the range this mix has actually produced over every five-day stretch of the last three years — before you commit to anything.
Free, no sign-up, virtual money only.
Frequently Asked Questions
Is SCHD or VTV better?
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VTV scores higher: 84.6 (Grade B+) versus 82.7 for SCHD. That doesn't make SCHD a bad fund; it means VTV currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Which has the lower expense ratio, SCHD or VTV?
VTV currently has the lower expense ratio (0.03% vs. 0.06%).
Can I hold both SCHD and VTV?
You can, though the benefit is limited. At a correlation of 0.89, SCHD and VTV fall together far more often than not, so owning both adds complexity and a second expense ratio without much real diversification. Most investors are better served picking one.
Go deeper on either fund
Full daily-updated metrics, holdings context, and category peers.