SCHD VS VYM
Two of the most popular dividend ETFs ever created. One from Schwab, one from Vanguard. Which belongs in your portfolio? We break down every number that matters.
Why Compare SCHD and VYM?
SCHD (Schwab U.S. Dividend Equity ETF) and VYM (Vanguard High Dividend Yield ETF) are two of the most widely held dividend ETFs in the world, and they're frequently compared against each other by income investors deciding where to put new money. Both are U.S. large-cap dividend funds. Both are passively managed, low-cost, and highly liquid. But the similarities largely end there.
SCHD tracks the Dow Jones U.S. Dividend 100 Index, which applies strict quality screens — including cash flow to debt, return on equity, dividend yield, and 5-year dividend growth — before selecting 100 stocks. VYM tracks the FTSE® High Dividend Yield Index, which selects companies based primarily on forecasted dividend yield, giving you a far wider, less filtered exposure to dividend-paying U.S. stocks.
The result: SCHD investors get a more concentrated, quality-biased portfolio with a higher yield. VYM investors get broader exposure, the rock-bottom expense ratio, and historically lower volatility. In this article we compare them across every meaningful metric.
Side-by-Side Stats: SCHD vs VYM
Key facts as of June 2026. Winners are labeled for each metric where applicable.
| Metric | SCHD (Schwab) | VYM (Vanguard) |
|---|---|---|
| Issuer | Charles Schwab | Vanguard |
| Inception Date | Oct 20, 2011 | Nov 10, 2006 Older |
| Index Tracked | Dow Jones U.S. Dividend 100 | FTSE® High Dividend Yield Index |
| NAV (Jun 2026) | $32.03 | $158.09 |
| Total Net Assets (AUM) | ~$95.9 Billion Larger | ~$70B+ |
| Expense Ratio | 0.06% | 0.04% Lower Cost |
| 30-Day SEC Yield | 3.30% Higher Yield | 2.23% |
| Distribution Yield (TTM) | 3.25% | ~2.8–3.0% |
| Number of Holdings | 105 | 550+ More Diversified |
| Morningstar Category | Large Value | Large Value |
| Management Style | Passive (Index) | Passive (Index) |
| Portfolio Turnover Rate | 41.96% | ~13–17% Lower Turnover |
| Price/Earnings Ratio | 19.07 | ~18–20 |
| Price/Book Ratio | 3.84 | ~2.8–3.2 |
| Return on Equity | 26.54% Higher ROE | ~20–22% |
| Standard Deviation (3 Yr) | 13.44% | ~12–13% |
| Dividend Screen Method | Quality + Growth screens | Forecasted yield screen |
| YTD Return (2026) | ~+7–9% (est.) | +11.52% Stronger YTD |
| Payout Frequency | Quarterly | Quarterly |
| Exchange | NYSE Arca | NYSE Arca |
Data sourced from Schwab and Vanguard fund pages as of June 2026. Some figures approximate. Not financial advice.
About SCHD — The Quality Dividend ETF
Everything you need to know about the Schwab U.S. Dividend Equity ETF.
SCHD: Quality-Screened, Concentrated Dividend Investing
- AUM
- ~$95.9B
- SEC Yield
- 3.30%
- Expense Ratio
- 0.06%
- Holdings
- 105
- Inception
- Oct 2011
- ROE
- 26.54%
SCHD was launched by Charles Schwab in October 2011 and has grown into one of the largest ETFs in the United States by AUM. It tracks the Dow Jones U.S. Dividend 100 Index, which screens U.S. dividend-paying stocks using four fundamental ratios: cash flow to total debt, return on equity, indicated dividend yield, and 5-year dividend growth rate. Only companies that have paid dividends for at least 10 consecutive years are eligible. The result is a concentrated portfolio of 100 stocks that represent what the index considers to be the most financially healthy, dividend-sustainable large-cap companies in the U.S.
SCHD underwent a 3-for-1 share split on October 10, 2024, meaning the NAV dropped from ~$96 to ~$32. If you've held SCHD for a while, your total value was unaffected — you simply received three shares for every one you held. The fund rebalances quarterly (March, June, September, December), with the March rebalance being a full annual reconstitution where holdings can be added or removed. The other three are primarily weight redistribution events.
SCHD Top 10 Holdings (Post Q2 2026 Rebalance)
As of June 23, 2026 — post Q2 2026 quarterly rebalance. No holding exceeds 4.37%.
| # | Ticker | Company | % of Assets | Market Value |
|---|---|---|---|---|
| 1 | UNH | UnitedHealth Group | 4.37% | $4.2B |
| 2 | PG | Procter & Gamble | 4.33% | $4.1B |
| 3 | MRK | Merck & Co. | 4.19% | $4.0B |
| 4 | ABT | Abbott Laboratories | 4.18% | $4.0B |
| 5 | HD | Home Depot | 4.17% | $4.0B |
| 6 | AMGN | Amgen | 4.13% | $3.9B |
| 7 | KO | Coca-Cola | 4.10% | $3.9B |
| 8 | VZ | Verizon Communications | 4.03% | $3.9B |
| 9 | PEP | PepsiCo | 4.01% | $3.8B |
| 10 | TXN | Texas Instruments | 3.97% | $3.8B |
Source: Schwab SCHD fund holdings page as of 06/23/2026. Subject to change.
About VYM — The High Dividend Yield ETF
Everything you need to know about the Vanguard High Dividend Yield ETF.
VYM: Broad, Low-Cost High-Yield Exposure
- AUM
- ~$70B+
- SEC Yield
- 2.23%
- Expense Ratio
- 0.04%
- Holdings
- 550+
- Inception
- Nov 2006
- YTD (2026)
- +11.52%
VYM was launched by Vanguard in November 2006, making it one of the oldest mainstream dividend ETFs available. It tracks the FTSE® High Dividend Yield Index, which selects U.S. stocks that are forecasted to have above-average dividend yields. The index excludes REITs and ranks eligible stocks by forecasted dividend yield, selecting the top half by market capitalization. This results in a broad, diversified portfolio of over 550 holdings — far larger than SCHD's 105.
VYM's defining feature is its ultra-low 0.04% expense ratio — tied for the lowest of any dividend ETF in its class. For every $10,000 invested, you pay just $4 per year. Its diversification is also a key differentiator: the top 10 holdings represent a much smaller share of the overall fund than in SCHD, meaning no single stock can meaningfully derail performance. The tradeoff is a lower yield than SCHD and a less rigorous dividend quality screen.
VYM Top 10 Holdings
As of June 2026. Broadcom (AVGO) dominates at 8.51% — an unusually heavy top position.
| # | Ticker | Company | % of Fund | Market Value |
|---|---|---|---|---|
| 1 | AVGO | Broadcom Inc. | 8.51% | $8.2B |
| 2 | JPM | JPMorgan Chase & Co. | 3.14% | $3.0B |
| 3 | XOM | Exxon Mobil Corp. | 2.53% | $2.4B |
| 4 | JNJ | Johnson & Johnson | 2.24% | $2.1B |
| 5 | CSCO | Cisco Systems Inc. | 1.98% | $1.9B |
| 6 | CAT | Caterpillar Inc. | 1.67% | $1.6B |
| 7 | ABBV | AbbVie Inc. | 1.59% | $1.5B |
| 8 | ORCL | Oracle Corp. | 1.57% | $1.5B |
| 9 | UNH | UnitedHealth Group Inc. | 1.43% | $1.4B |
| 10 | CVX | Chevron Corp. | 1.41% | $1.4B |
Source: Vanguard VYM fund holdings page as of June 2026. Subject to change.
⚠️ VYM's AVGO Concentration Worth Noting
One notable quirk of VYM's current portfolio: Broadcom (AVGO) sits at 8.51% of the fund — more than double the #2 holding (JPM at 3.14%). This is unusual for a fund marketed on diversification and is a result of Broadcom's massive share price appreciation and dividend yield qualifying it for a very large market-cap-weighted position. By contrast, SCHD's per-stock cap means no single holding exceeds 4.37%. If you believe in Broadcom's story, VYM gives you significant exposure. If you're cautious about it, that concentration may give you pause.
Sector Allocation Comparison
SCHD is more defensive. VYM carries more tech exposure via AVGO and financials via JPM.
📊 Sector Takeaway
SCHD's Q2 2026 rebalance pushed Healthcare and Consumer Staples each to 20% of the portfolio while cutting Technology to ~10%. This makes SCHD one of the most defensively positioned it has been in several years. VYM, by contrast, has significantly higher Technology and Financials exposure — largely due to the outsized AVGO position and JPMorgan Chase. Investors who want recession-resistant income will lean toward SCHD; those who want a broad slice of the market's dividend payers, including financials and tech, may prefer VYM.
Fund Profiles: SCHD vs VYM at a Glance
Two funds, two investment philosophies, side by side.
5 Key Differences Between SCHD and VYM
Understanding these distinctions will help you pick the right fund — or hold both.
-
1. Stock Selection: Quality Screens vs. Yield Screens SCHD uses four fundamental quality ratios (cash flow/debt, ROE, dividend yield, 5-yr dividend growth) and requires 10+ years of consecutive dividend payments. VYM simply ranks stocks by forecasted dividend yield and selects the top half by market cap. SCHD's bar is intentionally higher — this is why it has 105 stocks instead of 550+. The quality screen means SCHD tends to hold stocks with stronger balance sheets and more durable dividends, while VYM will include any high-yielder regardless of balance sheet strength.
-
2. Yield: SCHD Pays More Income Today SCHD's 30-day SEC yield of 3.30% is meaningfully higher than VYM's 2.23%. On a $100,000 investment, that's roughly $3,300 vs $2,230 per year in income — a $1,070 difference from a single metric. For retirees or income investors relying on distributions, SCHD delivers more cash per dollar invested. VYM's slightly lower yield reflects the fact that some of its largest holdings (like AVGO) have lower dividend yields relative to their elevated stock prices.
-
3. Expense Ratio: VYM Wins on Cost VYM charges 0.04% annually vs SCHD's 0.06% — a difference of just 2 basis points. On $100,000, that's $40 vs $60 per year. The practical impact is negligible for most investors, but if cost minimization is your only criterion, VYM wins. Both are dramatically cheaper than actively managed dividend funds, which often charge 0.5–1.0%+.
-
4. Diversification: VYM Is Far Broader With 550+ stocks vs SCHD's 105, VYM provides substantially more diversification. No individual company failure will meaningfully impact VYM. SCHD's more concentrated portfolio means individual holdings have more impact — positively and negatively. SCHD investors should be comfortable owning a smaller pool of higher-conviction names. VYM investors get something closer to the broad U.S. dividend-paying market.
-
5. Portfolio Turnover: SCHD Trades More SCHD's portfolio turnover rate stands at 41.96% — reflecting its more active rebalancing process (quarterly reweighting + annual reconstitution). VYM's turnover runs ~13–17% historically, which is more typical of a passive market-cap-weighted index fund. Higher turnover can mean slightly higher transaction costs inside the fund, though both funds remain extremely tax-efficient compared to actively managed alternatives. For tax-sensitive accounts, VYM's lower turnover is a mild advantage.
Who Should Buy SCHD vs VYM?
Neither fund is universally "better." Here's who each ETF is built for.
🤝 Can You Hold Both SCHD and VYM?
Absolutely — and many dividend investors do exactly that. SCHD and VYM overlap in some holdings (both hold UNH, CVX, and a handful of other names), but their overall compositions are different enough that combining them provides meaningful diversification benefits. SCHD brings quality screening, higher yield, and a defensive sector tilt. VYM adds breadth, Tech/Financials exposure via AVGO and JPM, and the lowest expense ratio available. A 50/50 split blends ~2.77% average yield with broad market coverage. Some investors also add a third fund — like DGRO or JEPI — to complete their dividend portfolio.
Final Verdict: SCHD vs VYM
Our overall take on both funds heading into the second half of 2026.
-
Best for pure income: SCHD With a 3.30% SEC yield vs VYM's 2.23%, SCHD simply pays more per dollar invested. For investors who need distributions to cover living expenses, SCHD's extra ~107 basis points of yield represents real money. On a $500,000 portfolio, that's roughly $5,350 more per year in income.
-
Best for lowest cost: VYM At 0.04%, VYM charges the lowest expense ratio in its class. The 2 basis point difference vs SCHD is small, but over decades it compounds. VYM also has lower portfolio turnover, which reduces trading costs inside the fund.
-
Best 2026 YTD performance: VYM VYM is up 11.52% YTD in 2026, driven partly by Broadcom's (AVGO) strong run. SCHD's heavier defensive tilt has lagged in a risk-on environment. However, SCHD has historically outperformed VYM over full cycles that include bear markets, where its quality and defensive positioning tends to hold up better.
-
Best for dividend quality and sustainability: SCHD SCHD's strict quality screens — requiring 10 consecutive years of dividends plus strong fundamental ratios — result in a portfolio of companies that are more likely to maintain and grow dividends over time. VYM includes any high-yielding stock, some of which may have shakier dividend track records.
-
Best for diversification: VYM 550+ holdings vs 105 — it's not close. VYM is far more diversified at the individual stock level. The tradeoff is that VYM's top holding (AVGO at 8.51%) is more concentrated than any single SCHD holding (max 4.37%), which somewhat undermines the diversification argument at the very top of the portfolio.
More Articles from Our Blog
Keep exploring with our latest dividend ETF guides, calculators, and data deep-dives.
Explore Our Free Dividend Network
More free tools and rankings built by the same team — no sign-up required.
⚠️ Important Disclaimer — Please Read
This article is for educational and informational purposes only and does not constitute financial, investment, or tax advice. The data, statistics, yields, expense ratios, holdings, and sector allocations presented in this article are sourced from publicly available information as of June 2026 and may be inaccurate, outdated, or subject to change at any time without notice.
Past performance of any ETF, including SCHD and VYM, is not a guarantee of future results. All investing involves risk, including the possible loss of principal. Dividend payments are not guaranteed and may be reduced or eliminated at any time by the issuing company or fund.
TopDividendETFs.com is not affiliated with Charles Schwab Corporation, Vanguard, FTSE, Dow Jones, or any of the issuers, funds, or companies mentioned in this article. We do not receive compensation from any ETF issuer for coverage, rankings, or recommendations on this site.
Always conduct your own due diligence and consult a licensed financial advisor before making any investment decisions. Your personal financial situation, tax status, risk tolerance, and investment goals are unique — no article can account for all of them.
Data on this page — including NAV, yields, AUM, holdings, and sector allocations — may be inaccurate or out of date. Always verify current figures through the official Schwab (schwab.com) and Vanguard (vanguard.com) fund pages before making decisions.