Two of the most popular low-cost dividend ETFs. Both are very cheap but take very different approaches to dividend investing.
| Metric | SCHD | VYM | Winner |
|---|---|---|---|
| Dividend Yield | 2.95% | 2.25% | SCHD |
| Expense Ratio | 0.04% | 0.06% | VYM |
| Assets Under Management | $107.9B | $95.8B | SCHD |
| Number of Holdings | ~100 | ~500 | VYM |
| Distribution Frequency | Quarterly | Quarterly | Tie |
| Inception Date | 2011 | 2006 | VYM |
| Strategy | Quality dividend growth | Broad high dividend yield | Different approaches |
| 1-year total return | +23.4% | +12.7% | — |
| 3-year annualized return | +15.4% | +17.7% | — |
| 5-year annualized return | +9.5% | +11.6% | — |
Investors prioritizing current income and quality over maximum diversification.
Investors seeking maximum diversification across dividend-paying companies.
Choose SCHD if: You prioritize higher current income (2.95% yield), quality over quantity, and are comfortable with a more concentrated portfolio of ~100 screened dividend growers.
Choose VYM if: You prefer maximum diversification with 500+ holdings, lower concentration risk, and a broad-market Vanguard index structure. The lower yield (2.25%) is offset by broader market exposure.
The Best Answer: Many investors hold both. SCHD for quality and yield, VYM for diversification. With both funds this cheap, there's almost no cost penalty for owning both.
Want monthly income in the mix? See SCHD vs VYM vs JEPI.
SCHD starts with companies that have paid dividends for at least 10 years and keeps the 100 that score best on cash flow to debt, return on equity, yield, and dividend growth. VYM simply takes the higher-yielding half of U.S. large and mid caps and weights them by size. So SCHD is a quality screen, while VYM is broad market exposure with a value tilt.
That difference shows in the holdings. VYM owns many more financials and large banks, because no quality rule removes them. SCHD has sector swings when its annual reconstitution changes the list, and it can miss stocks VYM holds. Check the return rows above before assuming one has the edge: which fund leads changes from year to year.
SCHD currently pays more: 2.95% against 2.25% for VYM, as of our latest data.
Both have raised payouts over time. SCHD screens for dividend growth directly, while VYM does not. Compare the yearly payouts on the SCHD and VYM pages.
Many investors do. They overlap but follow different rules, and both are very cheap. If you want simplicity, one is enough.
No, both pay quarterly. See ETFs that pay monthly dividends.