Home › VOO vs SCHD Calculator
VOO vs SCHD Calculator — Grow First, or Take Income Now?
Compare two strategies with your own assumptions: accumulate in a broad market fund, or hold a dividend fund from the start — and see the income each could support later.
Compare the two strategies
How to read this comparison
The accumulation phase rewards whichever assumption compounds faster, and small return differences become large over twenty years. The income phase rewards portfolio size: the same yield applied to a bigger portfolio produces more income. That is why many investors separate the two phases — build capital first, then convert part of it into income-producing assets as the need for income approaches. Our income goal calculator lets you set the target first and work backwards.
What the calculator leaves out
Capital gains tax when switching, fund fees beyond what is already inside an assumed return, currency movements for non-US investors, and the fact that returns arrive in an uneven sequence. A crash in the final years hurts more than this smooth model suggests. Use the output to compare strategies, not to pick one on a single number.
Frequently asked questions
Which is better, VOO or SCHD?
They do different jobs. A broad market fund such as VOO aims mainly at growth; a dividend fund such as SCHD aims at growth plus a higher current income. Which suits you depends on whether you need income now or are building capital for later — this calculator compares outcomes under your own return assumptions rather than declaring a winner.
Why compare total return instead of yield?
Because yield is only one part of what you end up with. A fund can pay a high yield and still grow slowly. Comparing projected portfolio value, then converting that value into potential income, keeps both sides of the picture visible.
What does 'income after switching' mean?
It estimates the income you could draw if, at the end of the period, you sold the growth portfolio and bought the dividend fund at the yield you entered, after withholding tax. Selling may itself create a tax bill, which this calculator does not model.
Are the default returns predictions?
No. They are round-number assumptions provided so the calculator works out of the box. Past returns of any fund do not predict its future returns.
Does SCHD pay monthly?
No, SCHD pays quarterly. The monthly figure shown here is an annual estimate divided by twelve.