What is an exchange-traded fund and how do SCHD and VTV operate?

An exchange-traded fund is a basket of securities that trades on a stock exchange like a single share. Both SCHD and VTV are ETFs. SCHD focuses on US dividend equity, while VTV targets value stocks. Instead of buying individual shares, investors purchase ETF shares, gaining diversified exposure to the underlying holdings managed by Schwab and Vanguard respectively.

What does the expense ratio mean for SCHD and VTV?

The expense ratio is the annual fee funds charge for management, shown as a percentage of assets. SCHD has an expense ratio of 0.06%, whereas VTV charges 0.03%. This means for every £10,000 invested, the annual fee would theoretically be £6 for SCHD and £3 for VTV, before accounting for trading costs or taxes.

How do the dividend yields of SCHD and VTV compare?

SCHD reports a dividend yield of 3.11%, indicating a higher payout rate relative to its share price. In contrast, VTV has a lower dividend yield of 1.85%. The difference reflects distinct fund strategies, with SCHD typically emphasizing income generation from dividend-paying stocks, while VTV may focus on capital appreciation and other value characteristics alongside its income distribution.

What are the top holdings in SCHD and VTV and do they overlap?

Top holdings in SCHD include MRK, ABT, and AMGN. VTV's leading holdings are MU, JPM, and BRK.B. The funds have different composition but share CVX as a top holding. SCHD has a heavier weighting in industrial, financials and basic materials, while VTV shows a more diverse spread across financials and tech sectors with CVX appearing in both.

How does the size of SCHD and VTV influence their liquidity?

Liquidity often correlates with fund size, measured as net assets. With £112.8 billion, SCHD demonstrates solid scale. VTV is larger still, at £191.1 billion. Greater assets can lead to tighter bid-ask spreads, making it potentially easier to trade these ETFs in large sizes without significantly moving the market price. Both funds offer substantial liquidity.

What market segment do SCHD and VTV belong to?

Both funds operate within the large-cap value category of the US stock market. This suggests they are likely composed of well-established companies that may be viewed as undervalued or are known for consistent dividends. The funds may be suitable for investors seeking stability and potentially lower volatility compared to growth or small-cap stocks.

What does 'Index tracking methodology' and sector weights tell us?

The provided data does not reveal the exact index tracked by SCHD and VTV or their sector weighting. This means we cannot verify their precise strategy or potential sector concentration. Investors would typically look up such data from official fund documents to assess risk and understand if the fund's holdings match their market view.

When were SCHD and VTV launched and what does this imply?

VTV was launched earlier, on January 26, 2004, giving it a longer track record. SCHD started on October 20, 2011. A longer operational history for a fund like VTV can provide more data for performance analysis. Investors often use this history to understand how a fund might behave over different market cycles.

Can I directly compare SCHD and VTV using their performance?

Direct performance comparison is tricky without detailed history. Both funds' inception dates and expense ratios differ, potentially influencing returns. The focus should be on how their objectives, yields and holdings align with your needs. Historical returns would require consulting additional data, as the comparison data does not include total return figures.

Which fund might be suitable for a regular income investor?

SCHD, with its higher dividend yield of 3.11%, is likely to appeal more to those seeking regular income compared to VTV, which yields 1.85%. However, an investor's overall financial situation, tax position and goals would determine the most appropriate choice. It is wise to consult official fund documents.

SCHD vs VTV

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

Compare SCHD (US Dividend Equity ETF Schwab) and VTV (Vanguard Value ETF) on fees, holdings and dividends. See how each fund tracks its market and explore key differences in asset size, expense ratios, yields and top holdings. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHD

Metric

VTV

0.06%

Expense Ratio

0.03%

3.11%

Dividend Yield

1.85%

$112.77B

Net Assets

$191.07B

102

Holdings

319

Oct 20, 2011

Inception Date

Jan 26, 2004

–

Index Tracked

–

Large Value

Fund Category

Large Value

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

Shared Top Holdings

Holding	SCHD	VTV
CVXChevron Corporation	4.25%	1.42%

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Investment Analysis

SCHD

Pros

Schwab offers a competitive expense ratio of 0.06% for its Dividend Equity ETF.
The fund manages substantial net assets of $112.8 billion, indicating strong investor confidence.
A dividend yield of 3.11% appeals to investors seeking regular income streams.

Considerations

Index tracking methodology is currently not available for verification of its strategy.
Sector weightings are not disclosed, limiting visibility into potential concentration risks.
The fund's inception date of October 2011 suggests a shorter operational history.

VTV

Pros

Vanguard maintains a lower expense ratio of 0.03% compared to similar value ETFs.
With $191.1 billion in net assets, the fund demonstrates significant liquidity and scale.
It was launched in January 2004, providing a longer track record for investors.

Considerations

Like SCHD, the specific index methodology for VTV is not available.
Sector weightings are undisclosed, which hinders detailed portfolio analysis by investors.
The dividend yield is lower at 1.85%, which may deter income-focused investors.

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About SCHD and VTV

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.

VTV (VTV)

The Vanguard Value ETF (VTV) is a large-cap value fund designed to track the performance of US large-capitalisation companies considered to have value characteristics. Launched in January 2004, it currently holds a diverse portfolio of 319 stocks. With a very low expense ratio of just 0.03%, it offers investors a cost-effective way to access established US companies that may be trading at lower prices relative to their fundamental metrics. The fund has accumulated net assets of approximately USD 191.07 billion, indicating significant liquidity and investor confidence. It currently provides a dividend yield of 1.85%. While value strategies can offer potential advantages during market rotations, like all investments, the value of shares can fall as well as rise, and returns are not guaranteed. This fund is generally suitable for investors seeking diversified exposure to the US large-cap value segment as part of a broader portfolio strategy.

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SCHD vs VTV

Fund Snapshot