Compare and contrast key facts about Vanguard S&P 500 ETF (VOO) and Schwab US Dividend Equity ETF (SCHD).
VOO and SCHD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011. Both VOO and SCHD are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VOO or SCHD.
SCHD - Performance Comparison. In the year-to-date period, VOO achieves a 11.79% return, which is significantly higher than SCHD's 3.39% return. Over the past 10 years, VOO has outperformed SCHD with an annualized return of 12.75%, while SCHD has yielded a comparatively lower 10.95% annualized return.
The SCHD dividend is consistently twice that of VOO. The SCHD holdings are primarily large-cap blue-chip stocks. VOO and SCHD have a lot of holdings overlap. But VOO contains all U.S. stocks in the S&P 500 index, while SCHD contains only the top-value dividend stocks.
VIG handily beats SCHD for 1-year performance. This is not a surprise, as stocks with a history of increasing dividends tend to be stable performers, which was a bonus for most of 2023. Returns for VIG and SCHD are similar in the long term with SCHD slightly edging out VIG for 10-year performance.
VOO - Performance Comparison. The year-to-date returns for both investments are quite close, with SCHX having a 10.80% return and VOO slightly higher at 11.09%. Both investments have delivered pretty close results over the past 10 years, with SCHX having a 12.54% annualized return and VOO not far ahead at 12.67%.
Investing in a fund accruing double-digit annualized returns over the long term is a winning strategy for compounding the size of one's portfolio. Think of it this way: on a cumulative basis, an investor who put $10,000 into SCHD 10 years ago would now have an investment worth just over $28,000.
1. VanEck Semiconductor ETF. The VanEck Semiconductor ETF (SMH) tracks a market-cap-weighted index of 25 of the largest U.S.-listed semiconductors companies. Midcap companies and foreign companies listed in the U.S. can also be included in the index.
Below, we've listed some key differentiators that an investor should keep in mind when comparing two similar ETFs dedicated to the same market segment.
VYM and SCHD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VYM is a passively managed fund by Vanguard that tracks the performance of the FTSE High Dividend Yield Index.
JEPI has consistently had a dividend yield of 7% or higher, whereas SCHD has never had a dividend higher than 4%. Overall, SCHD is a better option if you are looking for a passively managed ETF with a low expense ratio and consistent performance over the last ten years.
For shareholders of the Schwab U.S. Dividend Equity ETF (SCHD) over the past several years, the past year and a half has been a rough ride. In 2023, its 4.6% return landed it in the 89th percentile in Morningstar's Large Value category. Its 6% year-to-date return falls in the 91st percentile.
Based on 101 Wall Street analysts offering 12 month price targets to SCHD holdings in the last 3 months. The average price target is $87.42 with a high forecast of $102.01 and a low forecast of $72.55. The average price target represents a 12.88% change from the last price of $77.44.
VOO tracks the performance of the S&P 500 and, as a result, has approximately 500 holdings.On the other hand, SCHD invests in the Dow Jones U.S Dividend 100 Index. VOO invests in generating returns similar to those of the overall market, while SCHD creates a portfolio designed to maximize dividends.
The better Vanguard ETF for their needs is likely VYM, which delivers a higher 2.9% 30-day SEC yield by targeting the FTSE High Dividend Yield Index. It also charges the same expense ratio as VIG does, at 0.06%.
SCHD - Performance Comparison. In the year-to-date period, SPY achieves a 10.29% return, which is significantly higher than SCHD's 2.13% return. Over the past 10 years, SPY has outperformed SCHD with an annualized return of 12.50%, while SCHD has yielded a comparatively lower 10.80% annualized return.
SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 19, 2011. VYM is a passively managed fund by Vanguard that tracks the performance of the FTSE High Dividend Yield Index.
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
Address: 998 Estell Village, Lake Oscarberg, SD 48713-6877
Phone: +21813267449721
Job: Technology Engineer
Hobby: Swimming, Do it yourself, Beekeeping, Lapidary, Cosplaying, Hiking, Graffiti
Introduction: My name is Reed Wilderman, I am a faithful, bright, lucky, adventurous, lively, rich, vast person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
