Dividend comparison
SCHD vs VYM: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Schwab U.S. Dividend Equity ETF and Vanguard High Dividend Yield ETF, side by side. Updated October 24, 2026.
- Fees. VYM is cheaper at 0.04% a year versus 0.06% for SCHD. On $10,000 that is $2 a year less in fees.
- Income. SCHD pays more income, yielding 2.99% over the last twelve months versus 2.28% for VYM. That is about $71 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, VYM returned 68.7% versus 61.5% for SCHD, with dividends reinvested. $10,000 would have grown to $16,867 in VYM and $16,150 in SCHD.
- Risk. Their worst declines over the last 5 years were similar: -16.8% for SCHD and -15.8% for VYM from peak to trough.
- Diversification. VYM holds 589 positions and SCHD holds 102. The ten largest positions make up 41.8% of SCHD and 26.2% of VYM.
- Overlap. At least 19% of the two portfolios overlap by weight, across 25 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. SCHD grew its yearly payout 8.7% a year over the last 4 years, versus 3.1% for VYM.
Bottom line: SCHD fits better if you care most about more income today and faster dividend growth. VYM fits better if you care most about stronger 5-year returns and broader diversification.
| Metric | SCHD Schwab U.S. Dividend Equity ETF | VYM Vanguard High Dividend Yield ETF |
|---|---|---|
| Dividend yield (TTM) | 2.99% | 2.28% |
| Dividend / share (TTM) | $1.05 | $3.68 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.2665 on Sep 28, 2026 | $0.8869 on Sep 22, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 18, 2026 |
| Dividend growth (CAGR) | 8.7% over 4 yrs | 3.1% over 4 yrs |
| Price | $35.27 | $161.50 |
| Dividend growth streak | 13 years | 15 years |
| Beta | 0.58 | 0.75 |
| Max drawdown (5Y) | -16.8% | -15.8% |
| Market cap | $98.31B | $95.79B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.06% | 0.04% |
| Assets under management | $118.92B | $95.80B |
| Number of holdings | 102 | 589 |
| Top 10 concentration | 41.8% | 26.2% |
SCHD
$24.91/mo
$299 /yr at 2.99% yield
VYM
$18.97/mo
$228 /yr at 2.28% yield
| Year | SCHD | VYM |
|---|---|---|
| 2025 | $1.0476 | $3.5008 |
| 2024 | $0.9944 | $3.4945 |
| 2023 | $0.8862 | $3.4780 |
| 2022 | $0.8540 | $3.2518 |
| 2021 | $0.7499 | $3.0961 |
Expect stretches of underperformance versus the broad market whenever leadership comes from the high-growth, low-yield companies these screens exclude.
What SCHD vs VYM actually do
It tracks the Dow Jones U.S. Dividend 100 Index, which first requires at least ten consecutive years of dividends, then ranks the survivors on a composite of cash flow to total debt, return on equity, dividend yield and five-year dividend growth. The top 100 are held at market-cap weights with a 4% cap per stock and 25% per sector, reconstituted annually and rebalanced quarterly. Those quality screens push the portfolio toward mature value sectors and largely out of high-growth technology, which is the single biggest reason its return diverges from the S&P 500 in either direction.
Suits an investor who wants a growing dividend stream plus share-price participation and can sit out technology-led rallies without changing course. Not a match for someone who needs the highest available current yield or wants full market exposure.
Core dividend holding
It tracks the FTSE High Dividend Yield Index, which ranks US dividend payers by forecast yield, excludes REITs, and works down that ranking until roughly half the market value of the eligible universe is covered. Selection is on yield alone with no quality or growth screen, so the portfolio is wide and diversified but includes some payers a stricter screen would reject. Weighting is by market cap, meaning the biggest dividend-paying companies dominate.
Suits an investor who wants dependable above-market income with maximum breadth and minimum concentration risk. Less suitable if you specifically want dividend growth or a fundamental quality filter, since neither is part of the selection rule.
Core dividend holding
| Period | SCHD | VYM |
|---|---|---|
| 1 month | 5.77% | 2.45% |
| 3 months | 8.46% | 0.59% |
| Year to date | 32.24% | 13.29% |
| 1 year | 35.74% | 15.66% |
| 3 years | 69.62% | 70.17% |
| 5 years | 61.50% | 68.67% |
- SCHD
- VYM
Both series indexed to 100 on 2021-10-22 using the adjusted closing price series. Past performance does not guarantee future results.
- SCHD
- VYM
| Largest shared holdings | SCHD weight | VYM weight |
|---|---|---|
| CVXCHEVRON | 4.30% | 1.61% |
| MRKMERCK & CO INC | 3.97% | 1.52% |
| PGPROCTER & GAMBLE | 4.27% | 1.44% |
| KOCOCA-COLA | 4.22% | 1.42% |
| UNHUNITEDHEALTH GROUP | 4.19% | 1.41% |
| HDHOME DEPOT | 3.96% | 1.20% |
| TXNTEXAS INSTRUMENT | 4.49% | 1.08% |
| AMGNAMGEN INC | 3.97% | 0.89% |
| QCOMQUALCOMM | 4.20% | 0.82% |
| VZVERIZON COMMUNICATIONS INC | 3.48% | 0.81% |
SCHD102 holdings total
Quick verdict
SCHD fits better if you care most about more income today and faster dividend growth. VYM fits better if you care most about stronger 5-year returns and broader diversification. Model the holding inside your real portfolio before deciding.
Frequently asked questions
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.