Fund face-off

SCHD vs VOO: which is better for you?

Updated October 8, 2026 · 4 min read · By the Compound Wealth Calc team

SCHD focuses on steady dividend-paying companies. VOO owns the whole S&P 500. They're built for different goals.

The short answer

VOO has grown faster lately thanks to big tech. SCHD pays much more in dividends. Many people use VOO to grow money and SCHD later for income.

SCHD vs VOO at a glance

	SCHD	VOO
Made by	Schwab	Vanguard
Type	ETF	ETF
Follows	Dow Jones U.S. Dividend 100	S&P 500
What it owns	about 100 U.S. dividend companies	about 500 large U.S. companies
Yearly fee	0.06%	0.03%
Dividend yield (approx.)	3.7%	1.3%
10-year yearly return (approx.)	11.0%	13.5%
Typical swings	Medium	Medium

Returns and yields are rounded estimates through mid-2026. Fees are each fund's yearly expense ratio.

What is SCHD?

SCHD picks about 100 U.S. companies with at least 10 years of dividends, strong cash flow and steady dividend growth. It pays a higher yield than most stock funds.

What is VOO?

VOO follows the S&P 500, a list of about 500 of the biggest U.S. companies across every industry. It's one of the cheapest and most popular ways to own the U.S. stock market.

Growth: $200 every paycheck

Here's what $200 every two weeks could grow to at each fund's approximate 10-year yearly return:

After	SCHD	VOO
10 years	$91,470	$104,367
20 years	$351,192	$474,641
30 years	$1,088,651	$1,788,296

At these past rates, VOO ends up about $699,645 ahead after 30 years. Past returns don't promise future ones, so treat this as a "what if," not a forecast.

Fees

Yearly fee	SCHD	VOO
Per $10,000 invested	$6	$3
On the 30-year balance	$653	$536

Lower fees leave more money growing for you. See why small fees add up.

Dividends

	SCHD	VOO
Dividends a year on the 30-year balance	$40,280	$23,248

Risk

SCHD's typical swings are medium, and VOO's are medium. Funds that hold fewer kinds of companies tend to rise and fall more. The best fund is one you can hold through a bad year without selling.

Which one fits you?

Pick SCHD if you want income from dividends, or a fund with less tech.
Pick VOO if you want broad growth with the lowest fee.

Put SCHD and VOO side by side with your own paycheck amount.

Compare them

Quick answers

Is SCHD better than VOO?

VOO has grown faster lately thanks to big tech. SCHD pays much more in dividends. Many people use VOO to grow money and SCHD later for income.

Which has lower fees, SCHD or VOO?

SCHD charges 0.06% a year and VOO charges 0.03%. VOO is cheaper.

Which pays more dividends, SCHD or VOO?

SCHD has paid about 3.7% a year and VOO about 1.3%. Yields change over time.

Is SCHD good for retirement?

Many retirees like it for its higher dividends. See our guide on switching from growth to dividends before you retire.

Keep learning

This article is for learning only. It is not financial, tax or legal advice. Example returns are not promises. Talk to a licensed professional about your own situation.