SCHI vs VYM

Quick Verdict

SCHI has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: SCHIHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricSCHIVYMWinner
Expense Ratio0.03%0.04%
AUM$11.5B$79.0B
Dividend Yield5.02%2.86%
Holdings2,316568
YTD Return-0.59%+15.20%
1Y Return+2.11%+25.56%
3Y Return (annualized)+5.73%+17.86%
5Y Return (annualized)+0.68%+12.35%
Volatility (annualized)7.6%14.6%
Max Drawdown-20.7%-58.8%
Fund FamilyCharles Schwab Asset ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionOct 10, 2019Nov 10, 2006

SCHI vs VYM Performance

Schwab 5-10 Year Corporate Bond ETF (SCHI) 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 SCHI returned +2.11% while VYM returned +25.56%. Year to date, SCHI is down 0.59% versus a gain of 15.20% for VYM.

Over three years, SCHI compounded at +5.73% per year against +17.86% for VYM; over five years the annualized figures are +0.68% and +12.35% respectively. Across the full 7-year window we track, VYM has the edge at +7.05% annualized vs +1.48%. 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 7.6% for SCHI. 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 -20.7% for SCHI 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHI charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHI currently yields 5.02% against 2.86% for VYM.

Holdings Overlap

0.2%overlap

SCHI and VYM share 3 holdings out of 561 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHIWeight in VYMDifference
LOW0.07%0.65%0.58%
KVUE0.06%0.16%0.10%
CMS0.05%0.10%0.05%

Frequently Asked Questions

Which is cheaper, SCHI or VYM?

SCHI has an expense ratio of 0.03% while VYM charges 0.04%. SCHI is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, SCHI or VYM?

Over the past year SCHI returned +2.11% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), SCHI annualized +1.48% vs +7.05% for VYM. Past performance does not guarantee future results.

Which is riskier, SCHI or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.6% for SCHI. Worst drawdown: SCHI -20.7% vs VYM -58.8%.

Should I hold both SCHI and VYM?

SCHI and VYM have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHI and VYM?

SCHI and VYM share 3 common holdings with a 0.2% weight overlap. Combined, they hold 561 unique securities.

Which pays a higher dividend, SCHI or VYM?

SCHI yields 5.02% while VYM yields 2.86%, so SCHI currently pays the higher dividend yield.

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