SCHD vs. VIG: Which Dividend ETF Is Better?

2026-06-25 06:40:00 ET

Two of the best dividend ETFs in the marketplace are the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) and the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) . While they share ultra-low expense ratios, strong long-term track records, and loyal investor followings, they differ in how they construct their portfolios.

The Vanguard Dividend Appreciation ETF is more of a pure dividend growth play. It requires companies to have a 10-year-plus track record of consecutive annual dividend growth.

The Schwab U.S. Dividend Equity ETF looks for strong balance sheet fundamentals, a history of dividend payments, dividend growth, and a high yield in its selection process.

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