Wealthy PotSCHG vs SCHD: Schwab's Growth ETF vs Its Dividend ETF
SCHG and SCHD are Schwab's two most popular equity ETFs, and they sit at opposite ends of the market. SCHG buys large-cap growth; SCHD buys high-quality dividend payers. One chases total return, the other income, and over the past decade growth has won. But that gap is a story about style cycles, not about which fund is built better. This guide uses figures pulled straight from Schwab's fund documents.
The Short Answer
- Want long-term growth and the highest total-return potential? SCHG. It holds large-cap growth stocks (tech-heavy), pays almost no dividend, and has strongly out-returned SCHD, with more volatility.
- Want current income, a value tilt, and steadier behavior? SCHD. It yields far more (~3.2% vs ~0.4%) from a quality dividend screen and tends to hold up better when growth falls out of favor.
These are complements, not really rivals, growth vs income. Many investors hold both as a barbell, or pick based on whether they're accumulating (SCHG) or want income (SCHD).
Opposite Ends of the Same Market
- SCHG is the Schwab U.S. Large-Cap Growth ETF. It tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, about 195 holdings screened for growth, heavily weighted to technology and other fast-growing mega-caps, with a minimal dividend.
- SCHD is the Schwab U.S. Dividend Equity ETF. It tracks the Dow Jones U.S. Dividend 100 Index, about 102 holdings screened for high, quality yield, a value-tilted basket that deliberately avoids the growth names SCHG concentrates in.
Because one screens for growth and the other for dividends, they own largely different stocks, this is a genuine style choice, not two versions of the same fund.
SCHG vs SCHD Side by Side
| Feature | SCHG | SCHD |
|---|---|---|
| Fund | Schwab U.S. Large-Cap Growth | Schwab U.S. Dividend Equity |
| Index tracked | Dow Jones U.S. Large-Cap Growth TSM | Dow Jones U.S. Dividend 100 |
| Strategy | Large-cap growth (tech-heavy) | Quality high yield (value tilt) |
| Expense ratio | 0.04% | 0.06% |
| Number of holdings | ~195 | ~102 |
| SEC 30-day yield | ~0.37% | ~3.24% |
| 10-year return (avg annual, NAV) | 18.66% | 12.37% |
| Growth of $10,000 over those 10 years (hypothetical) | $55,370 | $32,080 |
| Inception | Dec 11, 2009 | Oct 20, 2011 |
The Return Gap, Explained
SCHG's ~18.7% a year against SCHD's ~12.4% over the past decade is a big gap, but it's the story of growth beating value, not of one fund being better run. Large-cap growth, led by mega-cap technology, had an exceptional decade, and SCHG concentrates in exactly those names. SCHD's value-and-dividend screen largely sat that trade out, in exchange for a much higher income stream and typically smaller drawdowns.
The trade-off cuts both ways. In the 2022 selloff, growth funds like SCHG fell substantially more than dividend funds like SCHD. Preferring SCHG is a bet that growth keeps leading; that's been right recently but wrong in other eras (much of the 2000s favored value). Chasing SCHG purely on its trailing return is the recency-bias trap covered in why time in the market beats timing it.
Which One Fits You
Choose SCHG if: you're in the accumulation phase, want maximum total-return potential, have a long horizon, and can tolerate bigger swings and concentration in tech. Compare it to the broad market in SCHG vs VOO.
Choose SCHD if: you want current income, a value/quality tilt, and steadier behavior, common for retirees and income investors. Compare it against the S&P 500 in SCHD vs VOO. Many investors hold both SCHG and SCHD as a growth-plus-income barbell, since they own largely different stocks.
FAQ
Is SCHG or SCHD better?
They serve opposite goals. SCHG is large-cap growth (tech-heavy, ~0.4% yield) and has out-returned SCHD over the past decade with more volatility; SCHD is quality dividends (~3.2% yield, value tilt) with steadier behavior and more income. Growth/accumulation investors lean SCHG; income investors lean SCHD; many hold both.
Why has SCHG outperformed SCHD?
The past decade strongly favored large-cap growth and technology, which SCHG holds and SCHD's value/dividend screen avoids. Total returns (dividends reinvested) still favored SCHG. Value and dividends have led in other periods; past performance doesn't predict the future.
Do SCHG and SCHD overlap?
Very little. SCHG screens for growth and SCHD for dividends/value, so they hold largely different stocks, which is exactly why holding both diversifies across styles rather than doubling one bet.
Should I hold both SCHG and SCHD?
Many investors do, as a barbell of growth (SCHG) and income/value (SCHD). Because they own different stocks, the combination smooths out style cycles: when growth lags, the dividend side tends to hold up, and vice versa.
Related comparisons: SCHG vs VOO · SCHD vs VOO · VUG vs VOO · VIG vs SCHD · All ETF comparisons
Primary sources: expense ratios, indexes, holdings, yields, and returns are from Schwab's official fund documents for SCHG and SCHD. Both 10-year returns as of Jun 30, 2026; SEC yields as of Sep 10, 2026. For background, see the SEC's Investor.gov guide to mutual funds and ETFs.
This article is for educational purposes only and is not investment advice. Investing involves risk, including possible loss of principal, and past performance does not guarantee future results. Growth funds can be more volatile and concentrated; dividends are not guaranteed. Expense ratios, yields, and holdings change over time; confirm current figures on the issuer's site before investing. Consult a qualified financial professional before making investment decisions.