What are expense ratios and why do they matter?

Expense ratios represent annual fees charged by ETFs. A lower ratio means more of your investment stays working for you over time. Comparing SCHD's 0.06% to VDC's 0.09% expense ratios helps understand cost differences. Even small variations can impact long-term returns significantly. The 0.03 percentage point difference might seem minimal, but compounded over decades, it affects net performance. Always consider fees as part of total cost of ownership.

How do ETFs track their markets?

ETFs typically track specific indices or market segments. SCHD focuses on US Dividend Equity stocks, while VDC concentrates on Consumer Staples companies. Both funds aim to replicate their respective market exposures, though the specific index tracked is not available. Tracking differences affect how each fund responds to market conditions. Understanding what each fund tracks helps investors assess portfolio alignment with their expectations.

What types of holdings do these funds have?

SCHD holds 112.8 billion dollars in assets with a 3.11% dividend yield, focusing on large value stocks. VDC manages 7.8 billion dollars with a 2.15% dividend yield, emphasizing consumer defensive stocks. SCHD's top holdings include MRK at 4.89%, while VDC holds WMT at 13.34%. Both funds share some holdings like KO and PG, but their overall composition differs significantly based on investment strategy.

How do dividend yields compare between these funds?

SCHD offers a 3.11% dividend yield, making it more income-focused than VDC's 2.15% yield. Higher yields can provide better current income but may reflect different risk profiles. SCHD's larger asset base of 112.8 billion dollars versus VDC's 7.8 billion dollars influences its dividend stability. Yield differences stem from each fund's investment strategy - SCHD's large value focus versus VDC's consumer staples defensive positioning.

What sectors do these ETFs cover?

SCHD covers multiple sectors with its large value categorisation, though specific weights are not available. VDC focuses exclusively on consumer staples within the consumer defensive category. While both funds include companies like KO and PG, their sector exposures differ fundamentally. SCHD's broader market approach versus VDC's concentrated consumer staples focus means different responses to economic cycles and market conditions.

How transparent are these funds about holdings?

Both SCHD and VDC provide top holding information, but sector weights are not available for either fund. SCHD's largest position is MRK at 4.89%, while VDC's is WMT at 13.34%. Limited transparency in sector weights can make portfolio construction challenging for investors seeking precise exposures. Top holding differences show concentration levels: SCHD's broader value approach versus VDC's consumer staples focus.

What does fund size indicate?

Net assets reflect fund popularity and scale. SCHD manages 112.8 billion dollars, indicating substantial market acceptance, while VDC has 7.8 billion dollars in dedicated consumer staples assets. Larger funds like SCHD generally offer better liquidity and stability, though smaller funds like VDC might track their niches more precisely. Fund size impacts trading costs and bid-ask spreads but doesn't guarantee better performance.

How do these funds handle market volatility?

SCHD's large value focus typically moderates volatility through diversification, while VDC's consumer staples holdings provide defensive characteristics. During market stress, VDC's essential goods exposure may offer stability, whereas SCHD's broader approach balances growth and income. Both funds' dividend yields (3.11% for SCHD, 2.15% for VDC) provide income buffers, though their volatility profiles differ based on sector composition and economic sensitivity.

What is the significance of inception dates?

SCHD's October 2011 inception versus VDC's January 2004 start provides different performance track records. VDC's longer history offers more data points for analysis, while SCHD's newer status might reflect updated methodologies. Both funds have survived multiple market cycles, but their inception dates influence available historical context for investors evaluating past performance against current market conditions.

How should beginners approach ETF comparisons?

Start by comparing basic metrics like expense ratios, yields, and holdings. Note SCHD's 0.06% fee versus VDC's 0.09%, then examine dividend yields (3.11% vs 2.15%). Look at top holdings to understand sector exposure - SCHD's broad value approach differs from VDC's consumer staples focus. Remember these are educational comparisons; always research further and consider consulting a financial advisor for personalised advice.

Is there an educational disclaimer?

This comparison is for educational purposes only and does not constitute financial advice. ETF investments carry risks, including potential loss of capital. Past performance does not guarantee future results. Investors should conduct their own research and consider their financial situation before making investment decisions. Always consult with a qualified financial advisor for personalised guidance.

SCHD vs VDC

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare SCHD (US Dividend Equity ETF) and VDC (Consumer Staples ETF) on fees, holdings, and dividends. We look at how each fund tracks its market and highlight shared holdings like KO and PG. Educational content, not financial advice.

Compare SCHD (US Dividend Equity ETF) and VDC (Consumer Staples ETF) on fees, holdings, and dividends. We look at how each fund tracks its market and highlight shared holdings like KO and PG. Educatio...

Fund Snapshot

Key Fund Metrics

SCHD

Metric

VDC

0.06%

Expense Ratio

0.09%

3.11%

Dividend Yield

2.15%

$112.77B

Net Assets

$7.76B

102

Holdings

108

Oct 20, 2011

Inception Date

Jan 26, 2004

–

Index Tracked

–

Large Value

Fund Category

Consumer Defensive

SCHD costs about $3.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SCHD	VDC
KOThe Coca-Cola Company	4.27%	9.63%
PGThe Procter & Gamble Company	4.02%	9.43%

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Investment Analysis

SCHD

Pros

Schwab’s ETF offers low annual fees at 0.06% expense ratio while holding 112.8 billion dollars in assets.
The fund provides moderate income through its 3.11% dividend yield across ten top holdings like MRK and ABT.
Established since October 2011, the ETF combines longevity with large value focus and diverse sector representation.

Considerations

Top holdings show concentration risk with the largest position in MRK accounting for 4.89% of total assets.
Fund sector weights are not available, limiting transparency into specific industry exposures beyond broad large value categorization.
While income-generating, the 3.11% yield may underperform higher-yielding alternatives depending on investor income objectives and market conditions.

VDC

Pros

Vanguard’s ETF operates at a modest 0.09% expense ratio while managing 7.8 billion dollars in dedicated consumer staples assets.
Since its January 2004 inception, the fund has maintained a consistent defensive focus with 2.15% dividend yield.
Portfolio diversification includes major defensive holdings like WMT (13.34%) and COST (11.99%), offering essential goods exposure.

Considerations

High concentration risk exists with three positions—WMT, COST, and KO—comprising over 34% of total fund assets.
Sector weights are not available, hindering assessment of broader consumer staples diversification beyond top ten holdings.
The 2.15% dividend yield is lower than SCHD, potentially reducing income appeal for yield-focused investors.

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About SCHD and VDC

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

VDC (VDC)

Vanguard Consumer Staples ETF (VDC) is an exchange‑traded fund that provides diversified exposure to companies that produce or sell everyday essentials — food, beverages, household goods and personal‑care products. As a passive, index‑tracking ETF, VDC aims to replicate the performance of a broad consumer staples benchmark and is commonly used for defensive allocation and income orientation because many holdings pay dividends. It trades intraday like a stock, with liquidity influenced by market volumes and the ETF’s size. Investors should note the sector concentration: performance depends on consumer demand, commodity costs and retailer dynamics, and can be affected by interest‑rate moves and shifts in consumer habits. This summary is general educational information only and not personal financial advice. Consider your investment goals, time horizon and risk tolerance; ETFs are not suitable for everyone and past performance is not a reliable guide to future results.

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Which Baskets Do They Appear In?

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Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

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SCHD vs VDC

Fund Snapshot