Wealthy PotSCHD vs SWPPX: Schwab's Dividend ETF or Its S&P 500 Fund?
SCHD and SWPPX overlap by only 7.9%, by our calculation from SEC holdings filings. Both are Schwab index funds and almost every SCHD stock (94.9% of its weight) is also in SWPPX, but those stocks are a thin slice of the S&P 500. SCHD is a 100-stock dividend ETF that charges 0.06% and yields 3.37% (30-day SEC yield, 1 October 2026). SWPPX is Schwab's S&P 500 mutual fund at 0.02% with no minimum. Over the ten years to 30 June 2026, SWPPX returned 15.46% a year and SCHD 12.37%.
Table of Contents
The Short Answer
- Overlap: 7.9%. SCHD's 46 S&P 500 stocks are 94.9% of SCHD but only 7.9% of SWPPX. Our calculation from N-PORT filings for 31 May 2026 (SCHD) and 31 July 2026 (SWPPX).
- Fees: SWPPX 0.02%, SCHD 0.06%. That is $2 against $6 a year per $10,000.
- Income: SCHD. Its 30-day SEC yield was 3.37% on 1 October 2026. Schwab does not publish an SEC yield for SWPPX.
- Returns: SWPPX ahead over three, five and ten years. To 30 June 2026 at NAV, 15.46% a year over ten years against SCHD's 12.37%. SCHD led over the latest year.
- Taxes: SCHD's income costs more. Tax on distributions took 0.92 points a year off SCHD's ten-year return and 0.48 off SWPPX's.
- Wrapper: SCHD is an ETF you can hold at any broker. SWPPX is a mutual fund bought through Schwab or another intermediary.
How Much SCHD and SWPPX Overlap
Our Portfolio Overlap Checker adds up the smaller weight of every stock both funds hold. The two filings are two months apart, so treat the decimals as approximate.
| Overlap measure | Result |
|---|---|
| SCHD holdings also in SWPPX | 46 of 99 |
| Share of SCHD's weight in SWPPX stocks | 94.9% |
| Share of SWPPX's weight in SCHD stocks | 7.9% |
| Overlap (sum of the smaller weight in each shared stock) | 7.9% |
| Stock | Weight in SCHD | Weight in SWPPX |
|---|---|---|
| Texas Instruments | 5.90% | 0.39% |
| UnitedHealth | 5.09% | 0.58% |
| Coca-Cola | 3.96% | 0.52% |
| Merck | 3.86% | 0.50% |
| Chevron | 3.83% | 0.57% |
| Verizon | 3.65% | 0.30% |
| Procter & Gamble | 3.55% | 0.52% |
| Nvidia | 0% | 7.52% |
| Apple | 0% | 7.02% |
| Alphabet (both classes) | 0% | 5.84% |
| Microsoft | 0% | 5.34% |
| Amazon | 0% | 4.11% |
The 454 SWPPX stocks that SCHD does not own made up 91.7% of SWPPX, and they include all of the ten largest S&P 500 companies. SCHD's 53 stocks outside the S&P 500, such as East West Bancorp and Watsco, add up to just 4.8% of SCHD. So SCHD is mostly a reweighting of a few dozen S&P 500 dividend payers. Its biggest shared holdings sit at roughly 6 to 15 times their weight in SWPPX.
SCHD vs SWPPX Side by Side
| SCHD | SWPPX | |
|---|---|---|
| Full name | Schwab U.S. Dividend Equity ETF | Schwab S&P 500 Index Fund |
| Index | Dow Jones U.S. Dividend 100 Index | S&P 500 |
| Structure | ETF | Mutual fund |
| Expense ratio | 0.06% | 0.02% |
| Minimum | One share (or a fractional share where offered) | No minimum |
| Holdings | 102 lines (2 Oct 2026) | 503 (31 Aug 2026) |
| Top 10 weight | 41.62% (2 Oct 2026) | 37.73% (31 Aug 2026) |
| 30-day SEC yield | 3.37% (1 Oct 2026) | Not published |
| Distributions | Quarterly | Once a year, in December |
| Turnover | 39.60% (31 Aug 2026) | 2.53% (31 Aug 2026) |
| Net assets | $108.67 billion (2 Oct 2026) | $149.93 billion (2 Oct 2026) |
| Inception | 20 October 2011 | 19 May 1997 |
SCHD's turnover is the number that stands out. Its index is rebuilt every year and rebalanced every quarter, so about two-fifths of the portfolio changed over the year to August. The S&P 500 changes slowly, so SWPPX turned over 2.53%.
Where the Two Funds Differ
Schwab publishes both funds' sector weights on the GICS scheme as of 30 June 2026, so they compare directly.
| GICS sector, 30 June 2026 | SCHD | SWPPX | Difference |
|---|---|---|---|
| Information Technology | 9.23% | 38.02% | -28.79 |
| Health Care | 20.72% | 8.89% | +11.83 |
| Consumer Staples | 20.38% | 4.57% | +15.81 |
| Energy | 14.07% | 2.98% | +11.09 |
| Industrials | 11.55% | 8.93% | +2.62 |
| Financials | 10.05% | 11.76% | -1.71 |
| Consumer Discretionary | 7.74% | 9.31% | -1.57 |
| Communication Services | 6.15% | 9.68% | -3.53 |
| Utilities | 0.11% | 2.20% | -2.09 |
| Materials | none | 1.83% | -1.83 |
| Real Estate | none | 1.83% | -1.83 |
The gap comes from SCHD's rules. Schwab's prospectus says each eligible stock "must have sustained at least 10 consecutive years of dividend payments," and the index then ranks the remaining companies on cash flow to debt, return on equity, dividend yield and five-year dividend growth. REITs are excluded outright. No stock may exceed 4.0% and no sector 25% at each rebalance. Most of the largest technology companies pay small dividends or none, so they never make the cut.
SWPPX simply holds the S&P 500 in index weights. Its top ten (Nvidia, Apple, Microsoft, Amazon, both Alphabet classes, Broadcom, Meta, Micron and Tesla) came to 37.73% on 31 August 2026. SCHD's top ten were 41.62% on 2 October 2026, but spread across energy, staples, health care, telecoms and two chipmakers.
Returns, Income and Tax Drag
| Average annual return at NAV | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| SCHD, to 30 Jun 2026 | 24.08% | 13.52% | 8.51% | 12.37% |
| SWPPX, to 30 Jun 2026 | 22.27% | 20.57% | 13.37% | 15.46% |
| SCHD minus SWPPX | +1.81 | -7.05 | -4.86 | -3.09 |
| SCHD, to 31 Aug 2026 | 29.45% | 16.18% | 10.01% | 13.17% |
| SWPPX, to 31 Aug 2026 | 20.34% | 21.01% | 12.76% | 15.34% |
| SCHD minus SWPPX | +9.11 | -4.83 | -2.75 | -2.17 |
SCHD has had a strong year. Over every longer period, on both dates, the S&P 500 fund was ahead. A $10,000 lump sum at SWPPX's ten-year rate to 30 June 2026 would have grown to about $42,103; at SCHD's, about $32,100. That is hypothetical arithmetic by Wealthy Pot with no contributions, costs or taxes, not a forecast.
SCHD's case is income. On $100,000, a 3.37% SEC yield is about $3,370 a year (our arithmetic, assuming the yield holds). In a taxable account, though, that income is taxed every year whether you spend it or not, and the issuer's own after-tax figures show it:
| To 30 June 2026, at NAV | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| SCHD after taxes on distributions | 22.68% | 12.42% | 7.54% | 11.45% |
| SCHD tax drag | 1.40 | 1.10 | 0.97 | 0.92 |
| SWPPX after taxes on distributions | 21.95% | 20.21% | 13.00% | 14.98% |
| SWPPX tax drag | 0.32 | 0.36 | 0.37 | 0.48 |
Being a mutual fund has not cost SWPPX much at tax time. Its distribution table on Schwab's site shows no capital-gains payout since December 2021, and that one was about 7 cents a share before the 2025 split.
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Which One Fits You
Building a core holding at Schwab, especially in an IRA: SWPPX. It owns the whole large-cap market at 0.02%, takes exact-dollar purchases with no minimum, and has the better long record. In a retirement account its mutual-fund wrapper has no tax downside.
You want cash income to spend, now or soon: SCHD's 3.37% SEC yield is paid quarterly, from companies with at least ten years of dividends. That suits a retiree drawing income, provided the lower technology weight is something you want.
Taxable account: SWPPX has had about half SCHD's tax drag. If you hold SCHD, an IRA or Roth IRA is the better home for it.
Account outside Schwab: SCHD trades at any broker like a stock. SWPPX can only be bought through Schwab or another intermediary, which may charge a transaction fee. An S&P 500 ETF such as VOO does the same job elsewhere; see SCHD vs VOO.
Holding both: a common mix is SWPPX as the core with a slice of SCHD. That is a deliberate tilt toward staples, health care and energy and away from technology, not extra diversification, since 94.9% of SCHD is already inside SWPPX. Selling a long-held taxable position to switch realizes the gain today. Redirecting new contributions does not.
Sources & Methodology
- Schwab Strategic Trust Form 485BPOS filed 22 December 2025: SCHD's 0.06% fee, index rules and quarterly distributions.
- SWPPX summary prospectus dated 26 February 2026: the 0.02% fee, objective, no minimum and how the fund is bought.
- Schwab SCHD fund page and Schwab SWPPX fund page, read 5 October 2026: assets, holdings, top ten, yield, turnover, sectors, distributions and before- and after-tax returns.
- Form N-PORT filings for SCHD (31 May 2026) and SWPPX (31 July 2026): the overlap, as the sum of the smaller weight of every shared holding.
Limits. The holdings filings are two months apart and the top-ten figures come from different dates. Our SCHD vs SPY page shows 7.6% overlap because it uses S&P 500 weights from a 30 June filing; the difference is timing, not methodology.
This article is for general education and is not investment, tax or legal advice. Fund data changes daily, index returns cannot be invested in directly, and past performance does not guarantee future results. All investing carries the risk of loss. Figures were checked against the sources above on 5 October 2026.
FAQ: SCHD vs SWPPX
Is SCHD better than SWPPX?
For total return over three, five and ten years to 30 June 2026, no: SWPPX returned 15.46% a year over ten years and SCHD 12.37%. SCHD led over the latest year and pays far more income. They do different jobs.
How much do SCHD and SWPPX overlap?
7.9%, by our calculation. SCHD holds 46 S&P 500 stocks that make up 94.9% of SCHD but only 7.9% of SWPPX.
Which is cheaper?
SWPPX, at 0.02% against SCHD's 0.06%. On $10,000 that is $2 against $6 a year.
Can I buy SWPPX outside Schwab?
The prospectus says investors may buy it only through an account at Schwab "or another financial intermediary." Some other brokers carry it, often with a transaction fee. SCHD, as an ETF, trades anywhere.
Should I hold SCHD and SWPPX together?
You can. It tilts an S&P 500 portfolio toward dividend payers in staples, health care and energy. It does not add new markets, since almost every SCHD stock is already in SWPPX.
Which is better in a Roth IRA?
Taxes stop mattering there, so the choice is about what you want to own. SWPPX has the stronger long-run growth record; SCHD gives more income and less technology.
Does SWPPX pay dividends?
Yes, once a year in December. SCHD pays quarterly.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"SCHD vs SWPPX: Schwab's Dividend ETF or Its S&P 500 Fund?" Wealthy Pot, 2026. https://wealthypot.com/schd-vs-swppx/
Related comparisons: SCHD vs SPY · SCHD vs VOO · SCHD vs VTI · SWPPX vs VOO · SPY vs SWPPX · SCHX vs SWPPX · All ETF comparisons
