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 $14,661 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
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All history
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SCHD
Dividend tilt
- After-tax if sold at end
- $40,447
- Before tax
- $48,639
- Value after taxes paid
- $43,998
- Max drawdown
- -33.37%
VTI
Total market
- After-tax if sold at end
- $55,108
- Before tax
- $65,588
- Value after taxes paid
- $62,068
- Max drawdown
- -35.00%
Detailed metrics
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.