SCHD vs VYM
SCHD vs VYM
Schwab US Dividend Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. SCHD delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | SCHD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $103.7B | $79.0B | |
| Dividend Yield | 3.31% | 2.86% | |
| Holdings | 104 | 568 | |
| YTD Return | +22.69% | +13.24% | |
| 1Y Return | +30.94% | +23.76% | |
| 3Y Return (annualized) | +14.20% | +16.97% | |
| 5Y Return (annualized) | +9.59% | +12.26% | |
| Volatility (annualized) | 13.7% | 14.6% | |
| Max Drawdown | -33.4% | -58.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Nov 10, 2006 |
SCHD vs VYM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SCHD returned +30.94% while VYM returned +23.76%. Year to date, SCHD is up 22.69% versus a gain of 13.24% for VYM.
Over three years, SCHD compounded at +14.20% per year against +16.97% for VYM; over five years the annualized figures are +9.59% and +12.26% respectively. Across the full 15-year window we track, SCHD has the edge at +11.31% annualized vs +6.96%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 13.7% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -33.4% for SCHD and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHD charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.86% for VYM.
Holdings Overlap
SCHD and VYM share 80 holdings out of 578 unique holdings combined, representing a 22.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in VYM | Difference |
|---|---|---|---|
| PG | 4.15% | 1.72% | 2.43% |
| HD | 4.16% | 1.66% | 2.50% |
| UNH | 4.54% | 1.17% | 3.37% |
| MRK | Pro | Pro | Pro |
| CVX | Pro | Pro | Pro |
| KO | Pro | Pro | Pro |
| ABT | Pro | Pro | Pro |
| AMGN | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| VZ | Pro | Pro | Pro |
See all 10 holdings SCHD shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, SCHD or VYM?
SCHD has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SCHD or VYM?
Over the past year SCHD returned +30.94% vs +23.76% for VYM, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.31% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, SCHD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.7% for SCHD. Worst drawdown: SCHD -33.4% vs VYM -58.8%.
Should I hold both SCHD and VYM?
SCHD and VYM have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SCHD and VYM?
SCHD and VYM share 80 common holdings with a 22.6% weight overlap. Combined, they hold 578 unique securities.
Which pays a higher dividend, SCHD or VYM?
SCHD yields 3.31% while VYM yields 2.86%, so SCHD currently pays the higher dividend yield.
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