SCHD vs VYM: Head-to-Head Comparison
SCHD vs VYM: Schwab U.S. Dividend Equity ETF has an expense ratio of 0.06% while Vanguard High Dividend Yield ETF charges 0.06%. SCHD holds 103 securities vs VYM's 550. 5-year returns: 12.10% vs 10.50%.
Last updated: April 2026
Dividend
Quick Verdict
VYM edges out SCHD with a stronger Beginner Suitability Score (9.5 vs 9). It offers better overall characteristics for new investors.
Side-by-Side Comparison
| Metric | SCHD | VYM |
|---|---|---|
| Expense Ratio | 0.06% | 0.06% |
| AUM | $62.0B | $60.0B |
| Dividend Yield | 3.40% | 2.80% |
| Holdings | 103 | 550 |
| 1-Year Return | 12.90% | 15.80% |
| 5-Year Return (Ann.) | 12.10% | 10.50% |
| 10-Year Return (Ann.) | 11.50% | 9.80% |
| Beta | 0.82 | 0.85 |
| P/E Ratio | 16.8 | 17.5 |
SCHD 5-year annualized return is 12.10% compared to VYM's 10.50%. Over 10 years, SCHD returned 11.50% vs VYM's 9.80%.
View data table
| Period | SCHD Return | VYM Return |
|---|---|---|
| YTD | 1.80% | 2.10% |
| 1 Year | 12.90% | 15.80% |
| 3 Year | 7.20% | 7.80% |
| 5 Year | 12.10% | 10.50% |
| 10 Year | 11.50% | 9.80% |
Key Differences Between SCHD and VYM
SCHD (Schwab U.S. Dividend Equity ETF) is a u.s. large-cap dividend fund managed by Charles Schwab. SCHD focuses on high-quality U.S. companies with strong track records of paying and growing dividends. It uses a rules-based approach to select about 100 stocks that have consistently paid dividends for at least 10 years. Beginners who want both income and growth often find SCHD attractive because it combines a solid dividend yield with quality stock selection at a very low cost.
VYM (Vanguard High Dividend Yield ETF) is a high dividend fund managed by Vanguard. VYM tracks an index of U.S. stocks that are forecasted to have above-average dividend yields, providing broad exposure to large-cap value companies. It holds around 550 stocks, making it more diversified than most dividend ETFs. Beginners who want income from their investments find VYM appealing because it combines a solid yield with Vanguard's trademark low costs and broad diversification.
The most notable differences are in fees (0.06% vs 0.06%), number of holdings (103 vs 550), and 5-year returns (12.10% vs 10.50%).
SCHD vs VYM multi-factor comparison: SCHD has a 0.06% expense ratio, 12.10% 5-year return, 103 holdings, 0.82 beta, and 3.40% yield. VYM has 0.06% expense ratio, 10.50% 5-year return, 550 holdings, 0.85 beta, and 2.80% yield.
View data table
| Metric | SCHD | VYM |
|---|---|---|
| Expense Ratio | 0.06% | 0.06% |
| 5-Year Return | 12.10% | 10.50% |
| Holdings | 103 | 550 |
| Beta | 0.82 | 0.85 |
| Dividend Yield | 3.40% | 2.80% |
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Holdings Overlap Analysis
18%
Holdings Overlap
SCHD and VYM share only 18% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
SCHD and VYM share 18% of their top holdings (low overlap). SCHD has 103 total holdings and VYM has 550. Common holdings include ABBV, KO, HD.
View data table
| Metric | SCHD | VYM |
|---|---|---|
| Overlap | 18% | 18% |
| Unique Holdings | 82% | 82% |
| Total Holdings | 103 | 550 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SCHD
Fee cost: $515
VYM
Fee cost: $515
Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, SCHD (0.06% fee) grows to $46,094 while VYM (0.06% fee) grows to $46,094. The fee difference costs $0.
View data table
| Year | SCHD Value | VYM Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,653 | $14,653 |
| 10 | $21,470 | $21,470 |
| 15 | $31,458 | $31,458 |
| 20 | $46,094 | $46,094 |
Which One Should a Beginner Choose?
Choose SCHD if: You want income-focused investors who want a reliable and growing dividend stream, conservative investors who prefer lower volatility with quality companies, retirees or pre-retirees building a dividend income portfolio. It's managed by Charles Schwab with an expense ratio of 0.06%.
Choose VYM if: You want income investors who want high dividends with broad diversification across 550+ stocks, conservative investors seeking a value-oriented approach with defensive characteristics, those who prefer vanguard's indexing philosophy applied to high-dividend stocks. It's managed by Vanguard with an expense ratio of 0.06%.
Can You Own Both SCHD and VYM?
Absolutely! With only 18% overlap, SCHD and VYM complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy SCHD or VYM?▾
VYM edges out SCHD with a stronger Beginner Suitability Score (9.5 vs 9). It offers better overall characteristics for new investors. However, both are solid options. SCHD is best for investors who want income-focused investors who want a reliable and growing dividend stream, while VYM is better suited for income investors who want high dividends with broad diversification across 550+ stocks.
What is the difference between SCHD and VYM?▾
SCHD (Schwab U.S. Dividend Equity ETF) tracks u.s. large-cap dividend investments with 103 holdings and a 0.06% expense ratio. VYM (Vanguard High Dividend Yield ETF) focuses on high dividend with 550 holdings at 0.06%. Their top holdings overlap by 18%.
Can I own both SCHD and VYM?▾
Yes! With only 18% holdings overlap, SCHD and VYM complement each other well. Owning both gives you broader diversification.