SCHDvs VYM

Quick verdict

Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM) are often compared by investors building a core portfolio. Their holdings overlap by roughly 49.2% (high overlap), sharing 10 of their top positions. neither clearly is cheaper at 0.06% vs 0.06%, SCHD pays more income, and SCHD has the stronger recent track record. On balance SCHD scores higher, but if overlap is high you likely only need one of the two.

Holdings overlap

SCHD and VYM overlap by about 49.2% across their largest holdings, which is high. Holding both would largely duplicate exposure — you would pay two expense ratios for similar returns. Most investors should pick one.

2-year relative performance

At-a-glance comparison

Cost

neither clearly is the lower-cost fund. SCHD charges an expense ratio of 0.06% versus 0.06% for VYM. On a $10,000 position that is about $6 vs $6 per year — small, but it compounds over decades.

Income & yield

SCHD yields 3.5% and VYM yields 2.8%, so SCHD is the stronger choice for income-focused investors. Higher yield can reflect a value or covered-call strategy rather than simply "more free money," so check the category: US Dividend Value vs US Dividend Value.

Performance

Over five years SCHD has returned 15.8% annualised against 8.8% for VYM; on a three-year basis it is 21.2% vs 18.9%. SCHD leads recently, though past performance does not predict future results and is heavily influenced by sector weightings.

Structure & diversification

SCHD holds about 121 positions (US Dividend Value, Schwab); VYM holds about 235 (US Dividend Value, Vanguard). VYM is the more diversified by raw holding count, and AUM is 80.3B vs 182.2B — larger funds tend to be more liquid with tighter spreads.

Which ETF fits which investor

For the lowest cost, choose SCHD. For the most income, SCHD. For growth exposure, SCHD. Given 49.2% overlap, holding both mainly makes sense if you specifically want to tilt toward one strategy — otherwise pick the single fund that matches your goal. This is a factual comparison, not advice.

• Lowest cost: SCHD
• Most income: SCHD
• Growth exposure: SCHD

Frequently asked questions

How much do SCHD and VYM overlap?

Their largest holdings overlap by approximately 49.2% (high), sharing 10 top positions. Owning both largely duplicates exposure.

Which is cheaper, SCHD or VYM?

neither clearly is cheaper, with an expense ratio of 0.06% versus 0.06%.

Which has the higher dividend yield?

SCHD yields 3.5% and VYM yields 2.8%, so SCHD pays more income.

Should I own both SCHD and VYM?

With 49.2% overlap, owning both mostly duplicates your exposure while paying two expense ratios — most investors pick one.

Related ETF comparisons

• SCHD vs JEPI