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SCHD vs. VIG

Schwab US Dividend Equity ETF

SCHD
$--
vs

Vanguard Dividend Appreciation ETF

VIG
$--

Correlation

0.95
SCHDSchwab US Dividend Equity ETF
VIGVanguard Dividend Appreciation ETF

What is SCHD?

The ETF seeks investment results that track, as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index. Provides exposure to high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends and have strong relative fundamental strength based on select financial ratios.

Snapshot
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SCHD Schwab US Dividend Equity ETF
VIG Vanguard Dividend Appreciation ETF
Inception date
Oct 20 2011
Apr 21 2006
Expense ratio
0.06%
0.06%
SCHD and VIG have the same expense ratio, meaning it’s equally as costly to invest in either one.
Type
US Equities
US Equities
SCHD targets investing in US Equities, while VIG targets investing in US Equities.
Fund owner
Schwab
Vanguard
SCHD is managed by Schwab, while VIG is managed by Vanguard.
Volume (1m avg. daily)
$191,902,599
$157,665,108
Both SCHD and VIG are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$47,737,029,197
$67,239,425,848
SCHD has more assets under management than VIG by $19,502,396,651. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
Dow Jones U.S. Dividend 100 Index
S&P U.S. Dividend Growers Index
SCHD is based off of the Dow Jones U.S. Dividend 100 Index, while VIG is based off of the S&P U.S. Dividend Growers Index
Inverse/Leveraged
No
No
SCHD and VIG use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
SCHD and VIG both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
Yes
Yes
Prospectus
Neither SCHD nor VIG require a K1.
SCHD and VIG’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toSCHD

#OPUS-12

Opus-12

Category

Opus, Investing for the Long-Term

Risk Rating

Moderate

Automated Strategies
Related toVIG

#RB

Rotating Bonds

Category

Getting Defensive, Diversification

Risk Rating

Moderate

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

**

We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.