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ETF Comparison

SCHD vs VYM: Which Is the Better Pick in 2026?

A head-to-head comparison of Schwab U.S. Dividend Equity ETF and Vanguard High Dividend Yield Index Fund ETF Shares covering yield, cost, risk, and income potential.

Data updated August 19, 2026

Best for

  • SCHDInvestors who want higher current income (2.93% vs 2.37% 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

SCHD has outpaced VYM over the trailing twelve months, posting a 31.25% total return against 23.85%. The lead holds up over 10 years too: SCHD has compounded at 12.97% a year, against 11.88% 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.
SymbolYTD1Y3Y5Y10YSince Oct 2011Volatility Sharpe Sortino Max drawdown
SCHD26.50%31.25%16.27%9.78%12.97%13.58%13.2%0.811.18-16.1%
VYM15.75%23.85%18.97%12.16%11.88%12.91%12.5%1.041.51-14.5%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 18, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2011” measures every fund from October 20, 2011 — the youngest fund's first trading day — 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 Index Fund ETF Shares
IssuerSchwabVanguard
Last Close$34.51 as of August 19, 2026$165.55 as of August 19, 2026
Distribution yield2.93%2.37%
Distribution Safety Score™ 10095
Expense ratio0.06%0.04%
AUM$109B$84.3B
Distribution frequencyQuarterlyQuarterly
Underlying indexDow Jones U.S. Dividend 100 IndexFTSE High Dividend Yield Index
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$0.2525$0.9800
Ex-dividend date06/24/202606/18/2026

Bottom lineChoose SCHD if you want higher current income (2.93% vs 2.37% for VYM). Choose VYM if you want simple, diversified core exposure in one low-cost fund.

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Income calculator

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

Schwab
ETFs34
Total AUM$616B

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

Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.

See our curated list of related YouTube videos on SCHD.

See all Schwab ETFs
Vanguard
ETFs116
Total AUM$4703B

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 Vanguard ETFs

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Quick verdict

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

SCHD offers the higher yield at 2.93% vs 2.37% 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 track different benchmarks: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VYM tracks FTSE High Dividend Yield Index, which means their performance drivers differ.

SCHD is the larger fund by assets ($109B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose SCHD

Schwab U.S. Dividend Equity ETF

  • Want higher current income — SCHD yields 2.93% vs 2.37% for VYM.
  • Want a quality-dividend tilt — screened payers rather than the broad index.

Choose VYM

Vanguard High Dividend Yield Index Fund ETF Shares

  • 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 $24.42/month, while VYM would produce $19.75/month, at current distribution rates. Both pay quarterly distributions.

SCHD yield2.93%
VYM yield2.37%
Monthly diff on $10K$4.67

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 $109B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $84.3B in assets.

SCHD AUM$109B
VYM AUM$84.3B
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Frequently asked questions

What is the current distribution yield for SCHD and VYM?

SCHD currently distributes 2.93% and VYM 2.37%, based on fund data updated August 2026. Distribution yield 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.

What is the difference between SCHD and VYM?

SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index, while VYM (Vanguard High Dividend Yield Index Fund ETF Shares) tracks FTSE High Dividend Yield Index. They are issued by Schwab and Vanguard respectively.

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 100, VYM scores 95, 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 $24.42 per month ($293.00 annually). The same in VYM would produce about $19.75 per month ($237.00 annually).

Which has performed better historically, SCHD or VYM?

SCHD has outpaced VYM over the trailing twelve months, posting a 31.25% total return against 23.85%. The lead holds up over 10 years too: SCHD has compounded at 12.97% a year, against 11.88% 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 August 15, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

SCHD and VYM are both large-cap U.S. dividend ETFs tracking different high-yield indexes, each with an expense ratio of 0.06%. SCHD targets the Dow Jones U.S. Dividend 100 Index (100 stocks with consistent dividend histories and financial strength), while VYM tracks the FTSE High Dividend Yield Index (a broader value-leaning dividend universe). The key distinction: SCHD emphasizes consistency and fundamental quality; VYM emphasizes value characteristics alongside yield.

How they differ

SCHD holds 100 dividend-paying stocks selected for consistent payout histories and strong fundamentals, while VYM taps a broader, value-focused universe tracked by the FTSE index. This drives a yield gap: SCHD distributes 2.93% annually versus VYM's 2.35%, a 58-basis-point difference that compounds over time. SCHD also carries a lower beta (0.56 vs. 0.68), suggesting less price volatility in market downturns, though both are less volatile than the broad market. VYM has been in existence since late 2006, nearly five years longer than SCHD, and has accumulated $83.4B in AUM to SCHD's $106B—both are massive funds with deep liquidity.

Who each is best for

SCHD: Fits investors seeking a streamlined, quality-filtered approach to dividend income, with a preference for companies that have demonstrated consistent dividend discipline and stronger balance sheets relative to peers.

VYM: Fits investors who want broader exposure to the value segment of high-dividend stocks and are comfortable with a less stringent quality screen in exchange for lower concentration risk across a wider stock pool.

Key risks to know

  • Index concentration: SCHD's 100-stock design means performance can be more sensitive to individual stock or sector misalignment with the Dow Jones methodology; VYM's broader FTSE universe distributes idiosyncratic risk across more holdings.
  • Value-tilt drawdown duration: Both funds emphasize dividend-paying, lower-volatility stocks, a characteristic that underperforms during sustained growth rallies; VYM's explicit value tilt may amplify this lag relative to the broader market during tech-led bull runs.
  • Yield-driven NAV pressure: SCHD's higher 2.93% distribution rate increases the likelihood that a portion comes from return of capital in years when underlying holdings underperform, which can erode net asset value over extended periods if the underlying index does not generate sufficient capital appreciation.
  • Dividend cut risk: Both funds depend on companies maintaining or growing dividends; economic downturns or sector-specific weakness could force cuts, shrinking yield and creating downside surprises for income-focused holders.

Bottom line

If you prioritize high current yield and a tighter focus on dividend consistency, SCHD's 2.93% distribution and lower volatility stand out; if you prefer broader diversification and acceptance of a lower yield in exchange for value exposure, VYM's wider index footprint fits better. Neither has a meaningful fee advantage—both charge 0.06%—so the choice hinges on philosophy: quality-and-income versus value-and-stability. Past performance doesn't guarantee future results.

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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