SCHY vs VYMI: Which Is the Better Pick in 2026?

Overview

Both SCHY and VYMI are dividend-focused international equity ETFs that exclude the U.S., but they operate from different index methodologies. SCHY tracks the Dow Jones International Dividend 100 Index and holds 100 of the highest-dividend-paying non-U.S. stocks; VYMI tracks the FTSE All-World ex US High Dividend Yield Index with a much broader universe. The key distinction: SCHY uses a narrower selection criterion (top 100 by dividend yield), while VYMI uses a dividend-yield-screens-then-caps approach that can include more companies.

How they differ

SCHY targets exactly 100 of the world's highest-yielding international stocks, creating a more concentrated portfolio. VYMI casts a wider net across developed and emerging markets using FTSE's screening logic, resulting in a less concentrated approach despite not disclosing its exact holding count.

VYMI offers a higher distribution rate at 4.81% versus SCHY's 4.30%, but also carries a lower beta (0.73 versus 0.81), suggesting gentler volatility relative to broader markets. VYMI's expense ratio of 0.07% undercuts SCHY's 0.14%, a modest but real savings on a $100,000 position ($7 annually versus $14). AUM tells the story of adoption: VYMI holds $21.1B compared to SCHY's $2.53B, reflecting Vanguard's scale in this category.

Who each is best for

SCHY: Fits investors seeking exposure to the absolute highest-yielding international dividend payers, willing to accept concentrated single-index exposure and a smaller fund structure in exchange for index simplicity and a lower price point.

VYMI: Fits investors who value lower costs, higher stated yields, and reduced portfolio concentration, and who have longer investment horizons over which to weather the slight volatility differential between narrower and broader dividend selection.

Key risks to know

• Concentration risk in SCHY: Holding exactly 100 stocks introduces meaningful single-holding and sector concentration; market dislocations in a top 10 holding carry outsized impact on the fund's return profile compared to broader screens.

• Yield sustainability: Both funds distribute at levels (4.30%–4.81%) that may include partial return-of-capital treatment, particularly if international equity valuations stagnate; compare annual underlying price appreciation to distributions over trailing periods to gauge capital preservation.

• Currency exposure: Both hold non-U.S. stocks with unhedged foreign exchange risk; a strengthening dollar reduces reported returns to U.S. investors independent of underlying stock performance.

• Dividend-cut risk: High-yield international screens can capture companies in temporary distress or cyclical industries; dividend cuts or eliminations can compress share prices faster than domestic equivalents, as international energy and banking sectors are well-represented.

• Index overlap and methodology: The two indexes may diverge in period-to-period constituent lists, meaning SCHY and VYMI are not interchangeable despite similar mandates; verify index reconstitution frequency and selection logic before treating them as substitutes.

Bottom line

If you want maximum yield and are drawn to a narrower, 100-stock approach, SCHY's structure and price point offer a clear entry. If you prioritize lower fees, higher stated yield, and broader diversification within the international high-dividend universe, VYMI's larger asset base and FTSE methodology deliver those traits. Past performance doesn't predict future results; the fund you select should align with your comfort level for concentration, currency exposure, and whether you expect dividend or price appreciation to drive your returns over your holding period.