SCHD vs VYM: Quality Dividends vs High Yield
Same 0.06% fee, very different philosophies. SCHD screens for dividend quality and growth; VYM casts a wider net chasing higher current yield.
SCHD and VYM charge the same 0.06% expense ratio, so this decision is entirely about income strategy. SCHD tracks the Dow Jones US Dividend 100 Index, which screens for dividend consistency, financial health, and yield — selecting just 100 high-quality dividend payers. VYM tracks the FTSE High Dividend Yield Index, casting a broader net across 558 stocks that simply have above-average dividend yields. SCHD has historically delivered stronger total returns and dividend growth because its quality screen filters out financially weaker companies with unsustainably high yields. VYM's larger, more diversified portfolio provides stability but has trailed SCHD on both income growth and capital appreciation. For most long-term income investors, SCHD's focus on dividend quality edges out VYM's yield-chasing approach.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 SCHD vs VYM — Key Facts Side by Side
| Metric | SCHD | VYM |
|---|---|---|
| Fund Name | Schwab U.S. Dividend Equity ETF | Vanguard High Dividend Yield Index Fund ETF Shares |
| Issuer | Schwab | Vanguard |
| Tracks Index | Dow Jones US Dividend 100 | FTSE High Dividend Yield |
| Expense Ratio | 0.06% | 0.06% |
| Cost per $10K/yr | $6.00 | $6.00 |
| AUM | $95.7B | $94.6B |
| Holdings | 100 | 558 |
| Inception | 2011 | 2006 |
| 1-Year Return | +18.64% | +19.27% |
| 3-Year Return | +14.60% | +18.50% |
| 5-Year Return | +8.77% | +12.03% |
| Dividend Yield | 3.30% | 2.30% |
| Holdings Overlap | ~30–40% — different dividend screens and holding counts — see full overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.00% |
Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 SCHD vs VYM — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want regular dividend income from quality dividend payers
- already use Schwab and prefer staying within one fund family
- want broader diversification (558 holdings vs 100)
- want regular dividend income from quality dividend payers
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ SCHD vs VYM — Frequently Asked Questions
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