SCHD’s Overlooked Schwab Sibling Turned $90,000 of Monthly Deposits Into $390,000
Schwab runs a quieter growth ETF that most investors ignore in favor of its famous dividend sibling, and the gap between what each fund did with the same monthly deposits over 14 years will surprise you.
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Put $500 into the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) at the start of every month since November 2011, and $90,000 of deposits would now be worth $389,859. SCHG gets far less attention than its dividend sibling, yet SCHG finished well ahead.
The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) turned the same deposits into $248,042, and the Vanguard S&P 500 ETF (NYSEARCA:VOO) reached $306,773. SCHG finished $141,817 ahead of SCHD and $83,086 ahead of VOO.
SCHG tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index for 0.04% a year, against 0.06% for SCHD. Its returns come mostly from rising share prices at fast-growing companies.
But SCHD leads again in 2026, and SCHG pays almost no dividends. Its fit depends on how you handle deep drawdowns and whether you will sell shares for income.
How SCHG Built a Six-Figure Lead
From October 2011 to September 2026, SCHG returned 17% a year, against 15% for VOO and 13% for SCHD. Monthly deposits compound those gaps into large dollar differences.
The past decade was more lopsided, with SCHG at 19% annualized, VOO at 15% and SCHD at 12%. Large technology companies drove that spread.
SCHG won 11 of the 14 full calendar years from 2012 to 2025. SCHD’s wins in 2016 and 2021 barely narrowed that lead.
SCHD’s third win, in 2022, matters most. It showed what SCHG costs when growth stocks fall.
Why 2022 Decides Who Should Own SCHG
SCHD lost 3% in 2022 while SCHG fell 32%. The SCHG account dropped $55,194 between the end of December 2021 and the end of September 2022, even with deposits coming in.
That loss hit near the balance’s peak, when a drawdown costs the most dollars. Deposits still bought shares at low prices.
SCHD led by $11,503 at the end of 2022. SCHG then returned 50% in 2023 and 35% in 2024, and its lead reached $103,581.
Moving SCHD’s $143,800 into SCHG at the end of 2022 and adding $500 a month would have produced $420,674. That meant buying growth near a bear-market bottom, which almost nobody does.
Three Stocks Supply the Lead and the Risk
Three technology giants make up 33% of this 189-stock fund, with the largest alone at 13%. Their gains drove much of the rebound after 2022.
The same weighting helps explain this year, with SCHD up 24% year to date against 13% for SCHG and 15% for VOO. One lagging year says little about the next decade.
It does show SCHG’s dependence on a few companies. A large-technology setback would hit SCHG far harder than SCHD.
SCHD spreads its weight across energy, consumer staples, healthcare, and dividend-paying chipmakers. SCHG gives up that protection for growth.
Income Needs a Different Answer
SCHG yields 0.4%, so the account pays about $1,481 a year in dividends. The SCHD account, yielding 3.2%, pays about $7,868.
Matching that means selling 1.6% of the SCHG account annually, a total payout near 2% with dividends. That is well under a 4% withdrawal rate.
Selling from a bigger balance can match a smaller account’s dividend. But it requires an annual decision and depends on the balance holding up.
Poor early-retirement returns are the weak spot. A drop like SCHG’s 2022 loss forces sales at low prices and reduces the base later income needs.
Which Investors SCHG Fits Best
SCHG best fits investors a decade or more from needing the money who can keep depositing through declines like 2022. Its low fee and compounding record make it a strong core growth position.
SCHD better fits retirees who want cash without selling shares. Its dividends come in automatically, and it held up far better in 2022.
If you want one fund with no tilt, VOO charges 0.03% and has less concentration. It trailed SCHG here but beat SCHD.
SCHG will trail in some years, as it has in 2026. Over 180 deposits, those years cost far less than the growth they generated.
Contact [email protected] for any questions or corrections.
Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
