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Dividend Vision

ETF Comparison

SCHD vs VYM: Broad High Yield, or a Tighter Quality Screen?

A head-to-head of Vanguard High Dividend Yield and Schwab U.S. Dividend Equity covering how each picks stocks, cost, and cash.

Updated October 14, 2026

How these figures are calculated: methodology.

Best for

  • SCHDInvestors who want higher current income (3.16% vs 2.23% for VYM).
  • VYMInvestors who want simple, diversified core exposure in one low-cost fund.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

SCHD has outpaced VYM over the trailing twelve months, posting a 29.85% total return against 15.96%. The lead holds up over 10 years too: SCHD has compounded at 13.04% a year, against 11.73% for VYM. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Oct 2011Volatility Sharpe Sortino Max drawdown
SCHD25.91%29.85%17.05%9.54%13.04%13.31%13.2%0.861.26-16.1%
VYM12.79%15.96%18.97%11.51%11.73%12.51%12.4%1.051.52-14.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 14, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Oct 2011” measures every fund from October 20, 2011 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSCHDVYM
Full nameSchwab U.S. Dividend Equity ETFVanguard High Dividend Yield ETF
IssuerSchwabVanguard
Underlying indexDow Jones U.S. Dividend 100 IndexFTSE High Dividend Yield Index
Last Close$33.71 as of October 14, 2026$159.06 as of October 14, 2026
Distribution rate3.16%2.23%
Trailing 12-month yield3.13%2.31%
Distribution Safety Score™ 9793
Safety-Adjusted Yield 3.07%2.07%
Expense ratio0.06%0.04%
AUM$110B$80.7B
Distribution frequencyQuarterlyQuarterly
ObjectiveSeeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.Seeks to track the performance of the FTSE High Dividend Yield Index, which offers exposure to dividend-paying large-cap companies that exhibit value characteristics within the U.S. equity market. The index includes stocks with a history of paying above-average dividends.
Asset classEquityEquity
Inception date10/20/201111/10/2006
Beta0.560.68
Last dividend$0.2665$0.887
Ex-dividend date09/23/202609/18/2026

Bottom lineChoose SCHD if you want higher current income (3.16% vs 2.23% for VYM). Choose VYM if you want simple, diversified core exposure in one low-cost fund.

VYM vs SCHD: high yield or a quality screen?

SCHD is a tighter quality-and-yield screen. VYM is a broader high dividend-yield index. Screen rules beat a small yield gap.

SCHDVYM
ScreenQuality US dividend payersHigh dividend-yield US stocks
Expense ratio0.06%0.04%
Distribution rate3.16%2.23%
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Schwab
ETFs33
Total AUM$614B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab offers ETFs across U.S. and international equities, fixed income, and other investment categories. Its dividend-focused lineup includes SCHD, which seeks to track the Dow Jones U.S. Dividend 100 Index and selects dividend-paying U.S. companies for fundamental strength. Fund objectives and tracked indexes differ across the lineup.

See our curated list of related YouTube videos on SCHD.

See all ETFs from Schwab
Vanguard
ETFs116
Total AUM$4.71T

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VYM.

See all ETFs from Vanguard

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Quick verdict

SCHD (Schwab U.S. Dividend Equity ETF) and VYM (Vanguard High Dividend Yield ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.16% vs 2.23% for VYM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VYM is cheaper with an expense ratio of 0.04% compared to 0.06%.

They have different reference exposures: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VYM is linked to FTSE High Dividend Yield Index, which means their performance drivers differ.

SCHD is the larger fund by assets ($110B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose SCHD

Schwab U.S. Dividend Equity ETF

  • Want higher current income — SCHD yields 3.16% vs 2.23% for VYM.
  • Want a quality-dividend tilt — screened payers rather than the broad index.

Choose VYM

Vanguard High Dividend Yield ETF

  • Want simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.04% expense ratio vs 0.06% for SCHD.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, SCHD would generate roughly $79.00 cash per distribution, while VYM would produce $55.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.16%
VYM yield2.23%
Cash diff on $10K$23.25

Cost & efficiency

Over 10 years on $10,000, SCHD would cost approximately $60 in fees vs $40 for VYM (simplified, not compounded). The $20.00 difference may be offset by yield or performance.

SCHD ER0.06%
VYM ER0.04%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index, while VYM tracks FTSE High Dividend Yield Index. Beta is 0.56 for SCHD and 0.68 for VYM, making SCHD the less volatile of the two by this measure.

SCHD beta0.56
VYM beta0.68

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $110B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $80.7B in assets.

SCHD AUM$110B
VYM AUM$80.7B
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Frequently asked questions

What is the difference between VYM and SCHD?

SCHD (Schwab U.S. Dividend Equity ETF) screens US dividend payers for quality and yield. VYM (Vanguard High Dividend Yield ETF) tracks a broader high-dividend-yield index. Cost is 0.06% versus 0.04%; distributions are 3.16% and 2.23% as of October 2026. Screen rules, not a small yield gap, are the decision.

What is the current distribution rate for SCHD and VYM?

SCHD currently distributes 3.16% and VYM 2.23%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SCHD or VYM better for dividend income?

It depends on your goals. SCHD currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

Can I hold both SCHD and VYM?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is SCHD or VYM safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SCHD scores 97, VYM scores 93, so SCHD's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHD or VYM?

SCHD has an expense ratio of 0.06% while VYM charges 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SCHD vs VYM generate?

At current rates, $10,000 in SCHD would generate roughly $79.00 cash per distribution ($316.00 annually). The same in VYM would produce about $55.75 cash per distribution ($223.00 annually).

Which has performed better historically, SCHD or VYM?

SCHD has outpaced VYM over the trailing twelve months, posting a 29.85% total return against 15.96%. The lead holds up over 10 years too: SCHD has compounded at 13.04% a year, against 11.73% for VYM. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHD vs VYM — at a glance

Generated October 10, 2026.

Overview

SCHD and VYM are both large-cap dividend ETFs that track different high-yield indexes, but SCHD emphasizes consistent dividend payers with stronger relative fundamentals, while VYM casts a wider net across value-tilted dividend stocks. SCHD carries a higher distribution rate and lower beta, while VYM has a slightly lower expense ratio. SCHD also has the larger asset base. Both are index-tracking vehicles with quarterly payouts.

How they differ

The biggest difference is index construction: SCHD tracks the Dow Jones U.S. Dividend 100 Index, which selects 100 high-dividend stocks and weights dividend consistency and financial strength into its selection process. VYM follows the FTSE High Dividend Yield Index, which is broader and value-tilted, offering exposure to a larger set of dividend-paying companies without the same emphasis on payout stability.

SCHD's 3.16% distribution rate runs 0.93% percentage points higher than VYM's 2.23%, reflecting its tighter focus on high-yield names. That higher yield comes with a trade-off in diversification — 100 holdings versus a larger implicit universe. SCHD's 0.56 beta is materially lower than VYM's 0.68, suggesting SCHD's portfolio exhibits less sensitivity to broad market swings. SCHD's $110B in assets dwarfs VYM's $80.7B, though both are substantial.

Who each is best for

SCHD: Fits investors seeking a concentrated, lower-volatility dividend income stream from blue-chip names with demonstrated commitment to stable payouts. The lower beta appeals to those who want dividend growth without outsized market gyrations.

VYM: Designed for dividend investors who prefer a broader, value-oriented equity base and are willing to accept slightly lower yield and higher market sensitivity in exchange for wider exposure across the dividend-paying universe.

Key risks to know

  • Dividend concentration. SCHD's 100-stock limit and emphasis on high-yield names means a larger proportion of the portfolio is dependent on a smaller set of dividend-payers. If those names cut payouts due to earnings stress, the fund's yield compresses quickly. VYM's broader index offers more dispersion of that risk.
  • Beta and rate-sensitivity mismatch. Both funds' lower betas (0.56 and 0.68, respectively) reflect value and dividend tilt, which historically underperforms during periods of rising equity multiples and low interest rates. A shift toward growth or higher rates may pressure relative returns.
  • Dividend sustainability in recession. Both funds concentrate in economically-sensitive sectors (financials, energy, utilities). A sharp earnings downturn typically forces dividend cuts across these holdings, eroding both yield and principal in tandem.
  • Index-tracking drag. Both are passive vehicles, so they capture exactly what their indexes deliver—no alpha. If the chosen index underperforms the broader market, the fund underperforms; neither provides active downside protection.

Bottom line

If you prioritize maximum current income and lower volatility, SCHD's 3.16% yield and 0.56 beta stand out; if you value maximum diversification and the lowest possible fees across a dividend-tilted large-cap base, VYM's breadth and 0.04% ratio fit better. Past performance does not guarantee future results, and both funds depend on continued dividend payments from underlying issuers.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

What the distribution rate really tells you Why a high yield isn't high income How to read a fund's stats

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These comparisons follow the Dividend Vision methodology.