Dividend ETFs: SCHD Offers Higher Yield but VIG Leads in Capital Growth

Core Insights - Vanguard Dividend Appreciation ETF (VIG) and Schwab U.S. Dividend Equity ETF (SCHD) are both focused on dividend growth, with SCHD offering a significantly higher yield compared to VIG, while VIG has shown stronger recent returns and greater exposure to technology [1][2] Cost & Size - VIG has an expense ratio of 0.05% and assets under management (AUM) of $103.1 billion, while SCHD has a slightly higher expense ratio of 0.06% and AUM of $77.3 billion [3][4][10] Performance & Risk - Over the past year, VIG has delivered a return of 10.4%, compared to SCHD's 6.6%. In terms of risk, VIG has a maximum drawdown of -20.39% over five years, while SCHD's is -16.86% [3][5] Portfolio Composition - SCHD consists of 101 U.S. companies, with major sector allocations in energy (19%), consumer defensive (18%), and healthcare (18%). Its top holdings include Lockheed Martin Corp, Texas Instrument Inc, and Chevron Corp [6] - VIG holds 338 stocks, with a focus on technology (28%), financial services (21%), and healthcare (17%). Its largest positions are in Broadcom Inc, Microsoft Corp, and Apple Inc, indicating a heavier tech exposure [7] Investor Considerations - Both funds are suitable for income-oriented investors, with nearly identical expense ratios and significant liquidity due to their large AUM. VIG is slightly larger, which may provide a marginal advantage in liquidity [9][10]