As of June 25, 2026, two of the most popular dividend ETFs in the U.S. market are the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Dividend Appreciation ETF (VIG). Both funds offer exposure to dividend-paying stocks but employ different strategies.
SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on companies with sustainable dividends and strong financials. It has a higher dividend yield, typically around 3.5% as of mid-2026, and emphasizes high dividend growth. VIG tracks the S&P U.S. Dividend Growers Index, selecting companies with at least 10 consecutive years of dividend increases, resulting in a lower yield (about 1.8%) but more consistent growth.
Performance-wise, SCHD has historically outperformed VIG in total return over the past decade, with an annualized return of approximately 12.5% versus VIG's 11.8% as of June 2026, according to Morningstar data. However, VIG has lower volatility and a slightly lower expense ratio (0.06% vs. SCHD's 0.06% as well, both are low).
Investors seeking higher current income may prefer SCHD, while those prioritizing dividend reliability and lower risk might choose VIG. Both ETFs are suitable for long-term dividend growth strategies.
