Wealthy PotSCHD vs VTV: A 100-Stock Dividend Screen or Broad Large-Cap Value?
SCHD and VTV both lean toward value, but they hold different portfolios. By our calculation from their SEC holdings filings, the overlap is only 17.1%: VTV's 300-odd large-cap value stocks are mostly absent from SCHD, while most of SCHD's money (91.8%) is in companies VTV also owns, at much smaller weights. SCHD is a 100-stock dividend screen yielding 3.37%. VTV is a broad value index yielding 1.89% at half the cost. Over the ten years to 30 June 2026 their returns were 0.30 points a year apart. Pick SCHD if you want the income. Pick VTV if you want broad, cheap value exposure.
Table of Contents
The Short Answer
- Overlap is 17.1%. The two funds shared 40 holdings. Those were 91.8% of SCHD's weight but only 17.1% of VTV's. Our calculation from the funds' N-PORT filings (SCHD at 31 May 2026, VTV at 30 June 2026).
- SCHD yields far more. SEC 30-day yield: SCHD 3.37% as of 1 October 2026, VTV 1.89% as of 30 September 2026.
- VTV costs half as much. 0.03% against 0.06%, from each prospectus fee table.
- Ten-year returns are nearly tied. To 30 June 2026 at NAV: VTV 12.67% a year, SCHD 12.37%. VTV led over one, three and five years by wider margins.
- SCHD is far more concentrated. Its ten largest holdings were 41.31% of the fund on 1 October 2026. VTV's were 24.1% on 30 June 2026.
- Different sector bets. SCHD leans hardest on health care, consumer staples and energy. VTV's biggest sector is financials.
How Much SCHD and VTV Overlap
This pair is unusual because the overlap is lopsided in the opposite way people expect. Most of SCHD's money is in companies VTV owns. But VTV owns about three times as many stocks, and gives each of SCHD's names a much smaller weight.
| Overlap measure | Result |
|---|---|
| Holdings in common | 40 |
| Share of SCHD's weight in stocks VTV also owns | 91.8% |
| Share of VTV's weight in stocks SCHD also owns | 17.1% |
| Overlap (sum of the smaller weight in each shared stock) | 17.1% |
The shared names are SCHD's big positions at roughly a quarter to a third of the weight in VTV:
| Stock | Weight in SCHD | Weight in VTV |
|---|---|---|
| UnitedHealth Group | 5.09% | 1.41% |
| Coca-Cola | 3.96% | 1.05% |
| Merck | 3.86% | 1.19% |
| Chevron | 3.83% | 1.17% |
| Verizon | 3.65% | 0.59% |
| Procter & Gamble | 3.55% | 1.28% |
| Amgen | 3.47% | 0.73% |
| Home Depot | 3.36% | 1.32% |
The other 59 SCHD holdings that VTV did not own added up to only 7.9% of SCHD. They are mostly smaller companies, such as Fastenal, that sit below VTV's large-cap universe. Going the other way, VTV's largest holdings (Micron, Berkshire Hathaway, JPMorgan Chase) were not SCHD holdings in these filings.
So owning both is not a duplication. Owning both does put extra weight on the shared dividend payers, which is a tilt worth knowing about.
How Each Fund Picks Its Stocks
SCHD uses a dividend screen. Schwab's prospectus says the fund tracks the Dow Jones U.S. Dividend 100 Index, a "100-component index" that is "a subset of the Dow Jones U.S. Broad Market Index, excluding real estate investment trusts (REITs), master limited partnerships, preferred stocks and convertibles." The rules, as the prospectus states them:
- Stocks "must have sustained at least 10 consecutive years of dividend payments, have a minimum float-adjusted market capitalization of $500 million USD and meet minimum liquidity criteria."
- Selection then evaluates "the highest dividend yielding stocks based on four fundamentals-based characteristics: cash flow to total debt, return on equity, dividend yield and 5-year dividend growth rate."
- "No single stock can represent more than 4.0% of the index and no single sector ... can represent more than 25% of the index, as measured at the time of index construction, reconstitution and rebalance."
- "The index composition is reviewed annually and rebalanced quarterly."
Because the caps apply at rebalance dates, weights drift between them. On 1 October 2026 Texas Instruments (4.69%), Qualcomm (4.55%), Chevron, Coca-Cola, Procter & Gamble and Merck were all above 4% on Schwab's holdings page.
VTV uses a broad style index. Vanguard's prospectus describes the Morningstar US Large Cap Value Index (called the CRSP US Large Cap Value Index until 29 July 2026) as "a broadly diversified index made up of the value stocks of large U.S. companies, as determined by the index provider." The fund "attempts to replicate the Target Index by investing all, or substantially all, of its assets in the stocks that make up the Target Index." There is no dividend requirement and no 4% single-stock cap in the prospectus description. VTV held 308 stocks on 30 June 2026.
That difference explains most of what follows. SCHD screens for dividend history and financial ratios and then concentrates in 100 names. VTV holds the whole large-cap value segment as its index provider defines it.
SCHD vs VTV Side by Side
| SCHD | VTV | |
|---|---|---|
| Name | Schwab U.S. Dividend Equity ETF | Vanguard Morningstar Value ETF |
| Index | Dow Jones U.S. Dividend 100 Index | Morningstar US Large Cap Value Index |
| Expense ratio | 0.06% | 0.03% |
| Prospectus cost of $10,000 over 10 years | $77 | $39 |
| 30-day SEC yield | 3.37% (1 Oct 2026) | 1.89% (30 Sep 2026) |
| Holdings | 102 lines including cash (1 Oct 2026); 100-component index | 308 stocks (30 Jun 2026) |
| Top 10 holdings, % of assets | 41.31% (1 Oct 2026) | 24.1% (30 Jun 2026) |
| Portfolio turnover, last fiscal year in prospectus | 30% | 8% |
| Net assets | $108.7 billion (2 Oct 2026) | $186.1 billion, ETF shares (30 Jun 2026) |
| Inception | 20 October 2011 | 26 January 2004 |
Sector weights are hard to compare across these two issuers: Schwab reports SCHD on GICS sectors, while Vanguard's VTV fact sheet uses the Industry Classification Benchmark. On its own scheme at 30 June 2026, SCHD's largest sectors were health care (20.72%), consumer staples (20.38%), energy (14.07%), industrials (11.55%) and financials (10.05%), with information technology at 9.23%. VTV's largest on its scheme were financials (21.3%), industrials (16.6%), health care (13.9%) and technology (11.9%). Even allowing for the different schemes, the clearest gaps are financials and staples: VTV's financials share is roughly double SCHD's, and SCHD's staples share is more than double VTV's.
Returns: Closer Than You Might Expect
Both issuers publish standardized average annual returns to 30 June 2026 at NAV, so this table compares like with like.
| Average annual return at NAV, to 30 June 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| SCHD | 24.08% | 13.52% | 8.51% | 12.37% |
| VTV | 25.92% | 18.01% | 12.32% | 12.67% |
| SCHD minus VTV | -1.84 | -4.49 | -3.81 | -0.30 |
Over ten years the two finished almost level. Over three and five years VTV was well ahead. Neither issuer attributes the gap to particular sectors or stocks, and we have not measured an attribution ourselves, so this page does not claim one. What the table does show is that the higher yield did not come with a higher total return in any of these windows.
| Hypothetical $10,000 held for 10 years | Ending value |
|---|---|
| At SCHD's 10-year return to 30 Jun 2026 (12.37%) | $32,100 |
| At VTV's 10-year return to 30 Jun 2026 (12.67%) | $32,967 |
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Income and Tax
The yield gap is the main practical difference. At the published SEC yields, $100,000 in SCHD would produce roughly $3,370 a year of dividends, against roughly $1,890 in VTV. That is our arithmetic, and it assumes the yields hold, which they will not exactly. Schwab also reports SCHD's trailing 12-month distribution yield at 3.00% as of 31 August 2026.
In a taxable account, more dividends mean more tax each year whether you spend them or not. Schwab's own figures show the cost for SCHD: over the ten years to 30 June 2026 its return fell from 12.37% before tax to 11.45% after tax on distributions, using the highest federal rates. We did not pull Vanguard's matching after-tax figure for VTV, so we do not compare the two directly, but a lower yield generally means less of this drag.
Inside an IRA, Roth IRA or 401(k) the tax point disappears. If you want SCHD's income, a tax-sheltered account is the efficient place to hold it.
Which One Fits You
You want income to spend: SCHD. A retiree who prefers living on dividends to selling shares gets 3.37% from SCHD against 1.89% from VTV, from companies with at least ten years of uninterrupted dividends.
You want broad value exposure: VTV. It costs half as much, holds about three times as many stocks, puts less than a quarter of the fund in its top ten, and has returned more over three and five years.
You are building around VOO or VTI. Both funds work as a value tilt next to a market fund. SCHD is the more concentrated, higher-income tilt; VTV is the wider, cheaper one. See SCHD vs VOO, SCHD vs VTI and VOO vs VTV.
Holding both. With a 17.1% overlap, owning both is not redundant. It will put extra weight on the shared names such as UnitedHealth, Chevron and Procter & Gamble.
Mutual fund alternative. VTV's fund also has Admiral Shares, VVIAX, at 0.05% with a minimum that is "generally $3,000" to open an account directly with Vanguard. The ETF is cheaper. Whichever you buy, check your broker's own trading terms.
Comparing SCHD with other dividend funds? VYM vs SCHD covers Vanguard's high-dividend fund, and VIG vs SCHD covers dividend growth.
Sources & Methodology
- Schwab Strategic Trust, Form 485BPOS filed 22 December 2025: SCHD investment objective, 0.06% fee table, $10,000 cost example, 30% turnover, and every quoted index rule.
- Schwab Strategic Trust, Form 497 supplement dated 11 June 2026: the management fee schedule showing SCHD still at 0.06% after Schwab's June 2026 fee cuts to other ETFs.
- Schwab Asset Management, SCHD fund page: SEC yield (1 October 2026), distribution yield, top holdings and holdings count (1 October 2026), net assets, sectors (30 June 2026), and quarterly standardized and after-tax returns (30 June 2026).
- Vanguard Index Funds, Form 485BPOS filed 28 April 2026: VTV ETF Shares fee table (0.03%), cost example, 8% turnover, index description, VVIAX fee and minimum.
- Vanguard, Form 497 supplement dated 29 July 2026: VTV's renaming and the Morningstar index name.
- Vanguard VTV fact sheet, 30 June 2026 and VTV profile page: returns, holdings, top ten, sectors, net assets, and the SEC yield as of 30 September 2026.
- SCHD Form N-PORT, period ended 31 May 2026 and VTV Form N-PORT, period ended 30 June 2026: the holdings behind the overlap figures.
How the overlap was computed. We matched the two N-PORT holdings lists and summed, for each shared stock, the smaller of its two weights, the same method as our Portfolio Overlap Checker. The filings are one month apart because the funds report on different fiscal calendars.
Limits. The two SEC yields are one day apart and the holdings data are three months apart, because each issuer publishes on its own schedule. Sector weights use different classification schemes and are not subtracted. We did not compare after-tax returns for VTV.
This article is for general education and is not investment, tax or legal advice. Fund data changes daily, and past performance does not guarantee future results. All investing carries the risk of loss. Figures were checked against the sources above on 4 October 2026. Confirm current figures with each issuer and consider speaking with a licensed financial professional before acting.
FAQ: SCHD vs VTV
Is SCHD better than VTV?
For income, yes: a 3.37% SEC yield against 1.89%. For total return, VTV has been ahead over one, three and five years to 30 June 2026, and the two were within 0.30 points a year over ten years. VTV also costs half as much.
Should I hold both SCHD and VTV?
You can. Their overlap is 17.1% by our calculation, so they are not duplicates. Combined, they give extra weight to the dividend payers they share.
Why do SCHD and VTV overlap so little if both are value funds?
SCHD keeps only 100 stocks that pass a ten-year dividend record and a four-factor quality and yield ranking. VTV holds the whole large-cap value segment, about 300 stocks. Most of VTV's holdings, including its three largest, were not SCHD holdings in the filings we matched.
Which is cheaper?
VTV, at 0.03% a year against SCHD's 0.06%.
Is SCHD more concentrated than VTV?
Yes. SCHD's top ten holdings were 41.31% of the fund on 1 October 2026, and its index caps single stocks at 4% only at rebalance dates. VTV's top ten were 24.1% on 30 June 2026.
Which is better in a Roth IRA?
A Roth removes the tax cost of SCHD's higher dividends, so the choice comes down to whether you want the dividend screen or the broader value index.
What index does VTV follow now?
The Morningstar US Large Cap Value Index, formerly the CRSP US Large Cap Value Index. Vanguard renamed it on 29 July 2026 after Morningstar acquired CRSP, and says the fund's objective and strategy are unchanged.
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 VTV: A 100-Stock Dividend Screen or Broad Large-Cap Value?" Wealthy Pot, 2026. https://wealthypot.com/schd-vs-vtv/
Related comparisons: SCHD vs VOO · SCHD vs VTI · VYM vs SCHD · VIG vs SCHD · DGRO vs SCHD · VOO vs VTV · All ETF comparisons
