The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Dividend Appreciation ETF (VIG) are two popular dividend ETFs, but they are built for different goals. SCHD aims to provide higher income through dividend-paying stocks, while VIG focuses on companies with a long history of growing their dividends. Using TipRanks’ ETF Comparison Tool, we compared the two funds to see which ETF stands out in 2026.
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Schwab U.S. Dividend Equity ETF (SCHD)
The Schwab U.S. Dividend Equity ETF (SCHD) invests in 101 U.S. companies with a strong record of paying dividends. It focuses on high-quality businesses with solid cash flow and healthy financials. Its largest holdings include UnitedHealth Group (UNH), Home Depot (HD), Merck (MRK), Amgen (AMGN), and Abbott Laboratories (ABT).
SCHD manages $95.81 billion in assets and has an expense ratio of 0.06%. It offers the higher dividend yield of the two funds at 3.24%. Over the past year, the ETF has gained 18.43%.
Is SCHD a Good ETF to Buy?
According to TipRanks’ ETF analyst consensus, SCHD is rated a Moderate Buy. The average SCHD price target of $36.07 implies an upside of about 11% over the next 12 months.
Vanguard Dividend Appreciation ETF (VIG)
The Vanguard Dividend Appreciation ETF (VIG) invests in U.S. companies that have increased their dividends for at least 10 consecutive years. Instead of chasing the highest yields, the fund focuses on businesses with a long history of steady dividend growth. Its top holdings include Broadcom (AVGO), Apple (AAPL), Microsoft (MSFT), Eli Lilly (LLY), and JPMorgan Chase (JPM).
VIG manages $110.13 billion in assets, making it slightly larger than SCHD. It also has the lower expense ratio at 0.04%. The fund offers a dividend yield of 1.50% and has gained 14.83% over the past year.
Is VIG a Good ETF?
According to TipRanks’ ETF analyst consensus, VIG is rated a Moderate Buy. The average VIG price target of $274.86 implies an upside of about 15% over the next 12 months.
Conclusion
SCHD stands out as the better buy in 2026 for most dividend investors. It offers a higher dividend yield and has outperformed VIG over the past year, making it a strong choice for investors seeking income.
Meanwhile, VIG remains a solid option for long-term investors who value steady dividend growth, lower fees, and a broader portfolio of high-quality companies. However, if your main goal is to generate dividend income, SCHD has the edge.