Dividend comparison

SCHD vs VYM: Which Is Better for Income?

Side-by-side yield, projected income, and dividend fundamentals for Schwab U.S. Dividend Equity ETF and Vanguard High Dividend Yield ETF. Updated July 26, 2026.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricSCHD
Schwab U.S. Dividend Equity ETF
VYM
Vanguard High Dividend Yield ETF
Dividend yield (TTM)
Dividend / share (TTM)
Price$33.29$162.23
Payout ratio (TTM)
Dividend growth streak13 years15 years
Beta0.580.69
Market cap$96.24B$96.80B
ExchangeAMEXAMEX
Expense ratio0.06%0.04%
Assets under management$102.62B$96.20B
Number of holdings103589
Top 10 concentration41.5%25.8%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

SCHD

/mo

Yield data unavailable

VYM

/mo

Yield data unavailable

Strategy: Dividend equity
Rules-based equity funds that screen for companies paying sustainable or rising dividends, aiming at income plus long-term share-price participation. The screen is what defines the fund: yield-ranked indexes deliver more cash now, dividend-growth indexes deliberately exclude the highest payers in favor of durability. Both approaches produce a sector mix that looks nothing like the broad market, typically heavier in financials, healthcare, staples and industrials.

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

An index ETF holding about 100 US dividend payers screened for balance-sheet strength and a long payment record.

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

A broad index fund holding the higher-yielding side of the US dividend-paying market, several hundred companies deep.

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

Performance
Trailing returns from the adjusted closing price series.
PeriodSCHDVYM
1 month4.95%2.68%
3 months7.53%4.70%
Year to date23.34%13.04%
1 year26.48%19.93%
3 years47.89%57.11%
5 years57.55%75.73%
  • SCHD
  • VYM
86134182202120222023202420252026158176

Both series indexed to 100 on 2021-07-24 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • SCHD
  • VYM
0%5%10%16%21%Healthcare20.8%13.2%Financial Services9.9%20.9%Technology12.7%17.8%Consumer Defensive20.6%8.1%Energy14.1%8.6%Industrials7.8%12.6%Consumer Cyclical7.7%6.8%Communication Services6.2%3.0%Utilities0.1%5.7%Basic Materials3.3%Other0.0%0.0%
Top 10 holdings
Largest positions by portfolio weight.

SCHD103 holdings total

NameWeight
ABTABBOTT LABORATORIES4.54%
MRKMERCK & CO INC4.47%
UNHUNITEDHEALTH GROUP INC4.41%
AMGNAMGEN INC4.31%
PGPROCTER & GAMBLE4.11%
HDHOME DEPOT INC4.07%
KOCOCA-COLA4.05%
CVXCHEVRON CORP4.02%
COPCONOCOPHILLIPS3.79%
PEPPEPSICO INC3.72%

VYM589 holdings total

NameWeight
AVGOBroadcom Inc7.25%
JPMJPMorgan Chase & Co3.36%
JNJJohnson & Johnson2.53%
XOMExxonMobil Holdings Corp2.35%
CATCaterpillar Inc2.00%
CSCOCisco Systems Inc1.91%
ABBVAbbVie Inc1.84%
BACBank of America Corp1.55%
UNHUnitedHealth Group Inc1.55%
HDHome Depot Inc/The1.45%

Quick verdict

Compare the metrics above, then add both tickers to a Dividend Wealth portfolio to see combined income forecasts and diversification impact.

Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how SCHD vs VYM fits with the rest of your holdings. Free to start — no credit card required for the trial.

Frequently asked questions

Is SCHD or VYM better for dividend income?
Compare yield, payout sustainability, and how each fund or stock fits your income goals. Use Dividend Wealth to model both holdings inside a real portfolio forecast.
What is the difference between SCHD and VYM?
Schwab U.S. Dividend Equity ETF (SCHD) is an ETF listed on AMEX. Vanguard High Dividend Yield ETF (VYM) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, price, payout ratio, dividend growth streak, beta, and market cap when available.
Can I hold both SCHD and VYM?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare SCHD vs VYM with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how SCHD and VYM fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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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.