Dividend vs total market
SCHD vs VTI after taxes
Compare a high-dividend US fund against a total US market fund with the tax character of their distributions in view.
Modeled result
From 2012 to 2025, VTI finished ahead of SCHD before tax and retained about $14,664 more in estimated end-date sale proceeds after taxes paid during the test, from the same $10,000 start.
Historical model
Growth of $10,000
2012-01-03 to 2025-12-31
| Date | SCHD | VTI |
|---|---|---|
| Approx. Jan 2012 | $10,000 | $10,000 |
| Approx. Jun 2012 | $10,413 | $10,557 |
| Approx. Sep 2012 | $11,179 | $11,619 |
| Approx. Mar 2013 | $12,210 | $12,616 |
| Approx. Jun 2013 | $13,162 | $13,353 |
| Approx. Nov 2013 | $14,420 | $14,879 |
| Approx. Feb 2014 | $14,403 | $15,440 |
| Approx. Aug 2014 | $15,394 | $16,244 |
| Approx. Nov 2014 | $16,200 | $16,946 |
| Approx. Apr 2015 | $16,434 | $17,640 |
| Approx. Jul 2015 | $15,807 | $17,541 |
| Approx. Jan 2016 | $15,621 | $16,181 |
| Approx. Apr 2016 | $17,171 | $17,492 |
| Approx. Sep 2016 | $18,155 | $18,587 |
| Approx. Dec 2016 | $19,180 | $19,712 |
| Approx. Jun 2017 | $20,247 | $21,303 |
| Approx. Sep 2017 | $20,504 | $21,846 |
| Approx. Mar 2018 | $22,700 | $24,108 |
| Approx. May 2018 | $22,223 | $24,104 |
| Approx. Nov 2018 | $23,324 | $24,421 |
| Approx. Feb 2019 | $23,702 | $24,856 |
| Approx. Aug 2019 | $24,315 | $26,075 |
| Approx. Oct 2019 | $26,398 | $27,499 |
| Approx. Apr 2020 | $23,436 | $25,117 |
| Approx. Jul 2020 | $25,972 | $29,398 |
| Approx. Jan 2021 | $31,584 | $35,263 |
| Approx. Apr 2021 | $36,589 | $38,281 |
| Approx. Sep 2021 | $37,310 | $41,292 |
| Approx. Dec 2021 | $40,338 | $44,027 |
| Approx. Jun 2022 | $40,546 | $38,669 |
| Approx. Sep 2022 | $37,733 | $36,962 |
| Approx. Feb 2023 | $39,844 | $37,870 |
| Approx. May 2023 | $37,627 | $39,146 |
| Approx. Nov 2023 | $37,763 | $41,038 |
| Approx. Feb 2024 | $42,088 | $46,695 |
| Approx. Jul 2024 | $45,882 | $51,800 |
| Approx. Oct 2024 | $47,893 | $55,416 |
| Approx. Apr 2025 | $43,783 | $51,143 |
| Approx. Jul 2025 | $47,481 | $59,863 |
| Approx. Dec 2025 | $48,639 | $65,589 |
| Holding | Before tax | Value after taxes paid | If sold at end | Max drawdown |
|---|---|---|---|---|
SCHD Dividend tilt | $48,639 | $43,995 | $40,444 | -33.37% |
VTI Total market | $65,589 | $62,068 | $55,108 | -35.00% |
SCHD
Dividend tilt
- After-tax if sold at end
- $40,444
- Before tax
- $48,639
- Value after taxes paid
- $43,995
- Max drawdown
- -33.37%
VTI
Total market
- After-tax if sold at end
- $55,108
- Before tax
- $65,589
- Value after taxes paid
- $62,068
- Max drawdown
- -35.00%
Detailed metrics
| Holding | Pre-tax value | Pre-tax CAGR | Max drawdown | Value after taxes paid | Tax paid | Embedded tax | If sold at end | CAGR if sold |
|---|---|---|---|---|---|---|---|---|
Dividend tilt SCHD | $48,639 | 11.97% | -33.37% | $43,995 | $2,829 | $3,550 | $40,444 | 10.50% |
Total market VTI | $65,589 | 14.39% | -35.00% | $62,068 | $1,530 | $6,961 | $55,108 | 12.97% |
Assumptions
$10,000 lump sum; distributions reinvested; monthly rebalancing; 2012-01-03 to 2025-12-31.
Tax profile: Single filer, $150,000 income, taxable account, HIFO lots, 2026 federal brackets, no state tax.
FAQ
- Does a higher dividend yield mean higher after-tax return?
- Not by itself. A higher yield means the fund distributes more of the return, and you pay tax on it each year in a taxable account. Whether that helps or hurts the after-tax result depends on total return, your bracket, and the account type.
- Does the account type change the comparison?
- Yes. In an IRA or Roth, distributions are not taxed yearly, so the dividend difference has no annual tax cost. The taxable-account view is where the distribution difference shows up as tax drag.
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