What is the main strategic difference between SCHY and VIGI?

The primary distinction lies in their categorisation. SCHY is classified as a Foreign Large Value fund, focusing on international companies that appear undervalued with higher dividend yields. In contrast, VIGI is a Foreign Large Growth fund, targeting international companies with a history of growing dividends. This means SCHY prioritises current income from established, potentially cheaper stocks, while VIGI prioritises long-term potential from companies increasing payouts. These differing approaches can lead to varied performance cycles.

How do value and growth dividend strategies differ?

Value strategies, represented by SCHY's focus, seek stocks that appear cheaper relative to fundamentals, often resulting in higher yields like the 3.39% listed. Growth strategies, associated with VIGI's 2.16% yield, target companies expected to increase earnings and dividends at an above-average rate. These approaches react differently to economic conditions; value often leads in recovery periods, while growth may thrive in low-interest-rate environments. Understanding this helps investors assess suitability.

Is SCHY a dividend reinvestment plan?

No, SCHY is not a dividend reinvestment plan; it is an exchange-traded fund that holds international equity positions. It distributes dividends to shareholders, who then decide whether to reinvest them through their brokerage. VIGI also distributes dividends rather than automatically reinvesting within the fund structure. Both funds provide exposure to international dividend-paying stocks, but they function as standard ETFs, not as self-reinvesting instruments. Investors can set up DRIPs separately through their brokerage account if desired.

How do the expense ratios of SCHY and VIGI compare?

VIGI charges a slightly lower expense ratio of 0.07% compared to SCHY at 0.08%. This represents a difference of just 1 basis point. Over long investment horizons, minimal fee differences can compound, potentially affecting net returns. Both ratios remain exceptionally low for international equity exposure. However, the fee is just one factor among many, including yield, strategy, and tracking differences, that investors should consider when evaluating total cost of ownership and net performance potential.

What does the fund size indicate for SCHY and VIGI?

VIGI manages significantly more assets, at $9.0 billion, compared to SCHY's $2.6 billion. Larger net assets, like VIGI's, can sometimes facilitate easier trade execution, tighter spreads, and lower tracking error due to liquidity advantages. SCHY, being smaller and launched in April 2021, has a shorter track record. Fund size doesn't directly impact returns but reflects investor adoption and may influence operational stability and liquidity characteristics for potential investors.

How do the inception dates affect their history?

SCHY was launched on 29 April 2021, giving it a relatively short track record of a few years. VIGI has been available longer, since its inception on 25 February 2016. Consequently, VIGI possesses more historical data for analysing performance across various market cycles. Investors evaluating SCHY have less historical evidence of its strategy's behaviour during different economic conditions compared to the longer-established VIGI. This affects the assessment of risk and performance consistency.

What do their sector exposures typically involve?

Specific sector weights are not available for either fund. However, their categorisations—Foreign Large Value for SCHY and Foreign Large Growth for VIGI—suggest different tilts. Value strategies often lean towards financials, industrials, and consumer staples in developed international markets. Growth strategies frequently emphasise technology, healthcare, and consumer discretionary sectors. Without published sector weights, investors must rely on the broad strategy labels to infer typical sector compositions rather than specific current allocations.

How do their top holdings compare?

Based on the available data, SCHY's top holdings are not listed, while VIGI's top holding is noted as BN at 1.51%. There is no shared overlap identified among the listed top holdings. This indicates their portfolios are constructed differently, likely due to their distinct value versus growth focuses. Without complete holdings data for SCHY, direct portfolio comparisons are limited. The differing single-stock exposures highlight that they do not track identical company baskets despite similar asset class categories.

Which fund has the higher dividend yield?

SCHY offers a significantly higher reported dividend yield of 3.39%, compared to VIGI's yield of 2.16%. This 1.23 percentage point difference reflects SCHY's value focus, targeting companies with higher payout ratios. VIGI's growth orientation prioritises increasing dividends over high current yields. Yield alone doesn't equate to total return, as growth funds may offer higher capital appreciation potential over time, compensating for the lower immediate income distribution to investors.

How are distributions typically made by ETFs like these?

ETFs like SCHY and VIGI generally distribute dividends received from underlying holdings, typically on a quarterly or semi-annual schedule. These distributions consist of dividends from international companies and may be qualified or non-qualified based on U.S. tax definitions. Distributions are usually paid in U.S. dollars. Investors can choose to receive cash distributions or reinvest them via their brokerage to buy additional shares, potentially increasing their total return through compounding, depending on the fund's payment mechanics.

What does the lack of top holdings information mean?

The unavailability of SCHY's complete top holdings and VIGI's broader list restricts detailed portfolio analysis. Investors cannot fully assess concentration risk or verify exact stock exposure. This contrasts with fund data for VIGI where BN is listed. It requires investors to consider that the disclosed information is partial. Without the full top holdings, it is difficult to determine the precise overlap between the funds' portfolios beyond the shared top 10 holdings status.

SCHY vs VIGI

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

Compare Schwab International Dividend Equity ETF (SCHY) and Vanguard International Dividend Appreciation ETF (VIGI). This page examines fees, holdings, dividends and how each fund tracks its market. SCHY charges 0.08% expense ratio with 3.39% yield; VIGI charges 0.07% with 2.16% yield. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHY

Metric

VIGI

0.08%

Expense Ratio

0.07%

3.39%

Dividend Yield

2.16%

$2.58B

Net Assets

$8.96B

133

Holdings

367

Apr 29, 2021

Inception Date

Feb 25, 2016

–

Index Tracked

–

Foreign Large Value

Fund Category

Foreign Large Growth

VIGI costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SCHY

Pros

SCHY offers a low expense ratio of 0.08% for international equity exposure
It targets a higher dividend yield of 3.39% than comparable dividend growth funds
The fund provides access to the Schwab international dividend equity strategy

Considerations

SCHY is relatively new having launched in April 2021 with limited performance history
It tracks a smaller asset base of $2.6 billion compared to larger peers
Its focus on foreign large value may result in growth-oriented investment characteristics

VIGI

Pros

VIGI charges a slightly lower 0.07% expense ratio for international dividend exposure
It manages $9.0 billion in assets reflecting investor confidence since its inception
The fund emphasises dividend growth companies within developed international markets

Considerations

VIGI has a lower dividend yield of 2.16% compared to income-focused alternatives
Its dividend growth approach may underperform during value-oriented market rotations
The fund's foreign large growth categorisation limits exposure to value stocks

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About SCHY and VIGI

SCHY (SCHY)

Schwab International Dividend Equity ETF (SCHY) is an exchange-traded fund designed to offer investors exposure to dividend-paying companies located outside the United States, primarily in developed markets. The fund aims to provide income through regular distributions while also offering geographic diversification away from US equities. As an ETF, SCHY trades like a stock on exchanges and holds a basket of international equities that meet its dividend criteria. Investors should be aware that returns depend on both dividend payments and market price movements; dividends are not guaranteed and may be cut. Currency fluctuations, geopolitical events and differing corporate governance standards can add volatility versus domestic funds. This information is general and educational only and is not personal financial advice — consider whether the ETF’s objectives, risk profile and fees suit your needs before investing.

VIGI (VIGI)

The Vanguard International Dividend Appreciation ETF (VIGI) is an exchange-traded fund that focuses on developed-market companies outside the US and Canada with a strong track record of increasing their dividend payments. Designed for income-oriented investors, the fund aims to provide exposure to established companies that value shareholder returns. Its low expense ratio of 0.07% ensures that more of your potential return remains in your pocket, a common feature of Vanguard's index-tracking products. The fund holds approximately 367 companies, offering diversified exposure across various sectors. As a growth-oriented fund focused on dividend appreciation rather than just high yields, it appeals to investors looking for a blend of steady income and potential capital appreciation from healthy, growing businesses.

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SCHY vs VIGI

Fund Snapshot