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 July 4, 2026

Schwab

ETFs34

Total AUM$574B

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

Schwab is known for offering low-cost, broad-based ETFs that serve both core portfolio holdings and specialized investment strategies. Their 33-fund lineup spans multiple asset classes including bonds, equities, international markets, digital assets, and factor-based strategies, with a notable emphasis on dividend-focused funds like SCHD alongside core index options. The issuer emphasizes accessibility for individual investors through competitive expense ratios and a diverse range of fund families designed to support various investment objectives.

See our curated list of related YouTube videos on SCHD.

See all Schwab ETFs

Vanguard

ETFs115

Total AUM$4484B

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

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VYM.

See all Vanguard ETFs

Side-by-side snapshot

	SCHD	VYM
Full name	Schwab U.S. Dividend Equity ETF	Vanguard High Dividend Yield Index Fund ETF Shares
Issuer	Schwab	Vanguard
Last Close	$32.39 as of July 4, 2026	$159.48 as of July 4, 2026
Distribution yield	3.12%	2.46%
Distribution Safety Score	100	100
Expense ratio	0.06%	0.06%
AUM	$95.2B	$78.3B
Distribution frequency	Quarterly	Quarterly
Underlying index	Dow Jones U.S. Dividend 100 Index	Basket (Vanguard High Dividend Yield ETF holdings)
Objective	Seeks 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 class	Equity	Equity
Inception date	10/20/2011	11/10/2006
Beta	0.59	0.7
Last dividend	$0.2525	$0.9800
Ex-dividend date	06/24/2026	06/18/2026

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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 23.16% total return against 20.72%. The lead holds up over 10 years too: SCHD has compounded at 12.50% a year, against 11.63% for VYM. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Oct 2011	Volatility	Sharpe	Sortino	Max drawdown
SCHD	17.79%	23.16%	13.81%	8.69%	12.50%	13.16%	13.1%	0.65	0.94	-16.1%
VYM	10.82%	20.72%	17.36%	11.70%	11.63%	12.70%	12.5%	0.92	1.34	-14.5%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 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.

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 3.12% vs 2.46% for VYM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They track different benchmarks: SCHD is linked to Dow Jones U.S. Dividend 100 Index while VYM tracks Basket (Vanguard High Dividend Yield ETF holdings), which means their performance drivers differ.

SCHD is the larger fund by assets ($95.2B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SCHD would generate roughly $26.00/month, while VYM would produce $20.50/month, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.12%

VYM yield2.46%

Monthly diff on $10K$5.50

Cost & efficiency

Over 10 years on $10,000, SCHD would cost approximately $60 in fees vs $60 for VYM (simplified, not compounded). Both charge the same expense ratio.

SCHD ER0.06%

VYM ER0.06%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index with a basket approach, while VYM tracks Basket (Vanguard High Dividend Yield ETF holdings) with an index approach. Beta is 0.59 for SCHD and 0.7 for VYM, indicating SCHD is less volatile relative to the market.

SCHD beta0.59

VYM beta0.7

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $95.2B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $78.3B in assets.

SCHD AUM$95.2B

VYM AUM$78.3B

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Frequently asked questions

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 with a basket approach, while VYM (Vanguard High Dividend Yield Index Fund ETF Shares) tracks Basket (Vanguard High Dividend Yield ETF holdings) with an index approach. They are issued by Schwab and Vanguard respectively.

Can I hold both SCHD and VYM?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, SCHD or VYM?

SCHD and VYM both charge the same expense ratio of 0.06%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

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

At current rates, $10,000 in SCHD would generate roughly $26.00 per month ($312.00 annually). The same in VYM would produce about $20.50 per month ($246.00 annually).

Which has performed better historically, SCHD or VYM?

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SCHD vs VYM — at a glance

Generated June 2026 from current fund data.

Overview

SCHD and VYM are both large-cap dividend-focused ETFs tracking distinct indexes of high-yielding U.S. stocks. Both charge the same rock-bottom expense ratio of 0.06%, but they differ in their underlying selection criteria: SCHD targets the 100 highest-yielding stocks with consistent dividend histories and strong financial ratios, while VYM casts a wider net across value-tilted dividend payers. The funds appeal to income investors but deliver materially different yield and volatility profiles.

How they differ

SCHD's defining trait is a narrower, more concentrated portfolio—just 100 stocks versus VYM's broader basket—which is why SCHD yields 3.16% against VYM's 2.47%. SCHD also screens for fundamental strength (financial ratios favoring quality), making it a purer "dividend quality" play; VYM emphasizes value characteristics and doesn't restrict on dividend consistency. The beta difference is modest but real: SCHD's 0.59 beta versus VYM's 0.7 reflects SCHD's tighter focus on lower-volatility dividend stocks, though both are well below the broad market. AUM favors SCHD at $95.2B versus VYM's $78.3B, signaling strong investor demand for SCHD's higher yield in a low-fee wrapper.

Who each is best for

SCHD: Fits income-focused investors seeking higher current yield from a screened basket of fundamentally sound dividend payers, willing to accept greater concentration risk for better income and lower portfolio volatility.

VYM: Designed for dividend investors who prioritize broader diversification and a value tilt over maximum yield, or those who view dividend yield as one of several value metrics rather than the primary selection criterion.

Key risks to know

Concentration and single-factor risk: SCHD's 100-stock mandate creates higher idiosyncratic risk than a broader dividend fund; a sector rotation or dividend-cut wave among its holdings can outpace diversification benefits. VYM's wider holding count provides more buffers.

Dividend-yield mean reversion: Both funds screen on current yield, which may mechanically select stocks whose yields are elevated due to recent price declines. When those prices recover, yields compress and holding returns lag price appreciation alone.

Sector clustering in high-yield screens: Both funds are naturally weighted toward utilities, REITs, and energy—sectors where yield is structural. An extended period of rising rates or changing investor preference away from high-yield sectors can create a headwind neither diversification nor low fees can fully offset.

Quality degradation in yield screens: SCHD's financial-ratio screen mitigates this, but both funds may overweight stocks with deteriorating business fundamentals that temporarily maintain high yields; quality metrics lag real business deterioration.

Bottom line

If you want maximum income from dividend screening and accept concentrated exposure to 100 curated stocks, SCHD's 3.16% yield and lower beta stand out; if you prefer broader diversification and value exposure across a wider pool of dividend-paying stocks, VYM's lower yield reflects a gentler selection approach. Both charge 0.06% and offer professional index construction, so the choice hinges on your tolerance for concentration and your income threshold. Past performance does not guarantee future results.

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