Three of the most-owned dividend ETFs, and three different jobs: SCHD for quality and dividend growth, VYM for broad diversification, and JEPI for high monthly income. Here is how they stack up and who each one suits.
Updated September 25, 2026 · yields reviewed August 11, 2026
| Metric | SCHD | VYM | JEPI | Edge |
|---|---|---|---|---|
| Dividend Yield | 3.89% | 2.45% | 8.36% | JEPI |
| Income on $10,000 / year | ~$389 | ~$245 | ~$836 | JEPI |
| Expense Ratio | 0.06% | 0.06% | 0.35% | SCHD / VYM |
| Payout Frequency | Quarterly | Quarterly | Monthly | JEPI |
| Holdings | ~100 | 500+ | ~100 stocks + option notes | VYM |
| Assets Under Management | $71.0B | $84.0B | $40.4B | VYM |
| Upside Potential | Full | Full | Partly capped | SCHD / VYM |
| Tax Character | Mostly qualified | Mostly qualified | Mostly ordinary income | SCHD / VYM |
| Inception | 2011 | 2006 | 2020 | VYM |
| Strategy | Quality dividend growth | Broad high dividend yield | Low-vol stocks + options income | Different goals |
Yields are trailing distribution yields from recent fact sheets and change over time. Confirm current figures with Schwab, Vanguard, and JPMorgan before acting.
Tracks the Dow Jones U.S. Dividend 100 Index: about 100 companies with 10+ straight years of dividends, screened for cash flow, return on equity, yield, and dividend growth.
Long-term investors who want a mid-3% yield that has historically grown, at a 0.06% fee.
Tracks the FTSE High Dividend Yield Index: the higher-yielding half of U.S. large caps, 500+ stocks, weighted by market cap, with no quality or growth screen.
Investors who want broad, low-turnover dividend exposure with minimal single-stock or sector risk.
Actively managed by JPMorgan: a defensive, lower-volatility stock portfolio plus equity-linked notes that sell S&P 500 call options. The option premium drives most of its yield.
Retirees and income investors who need high monthly cash flow and accept limited upside in rallies.
JEPI's income is more than double SCHD's and more than triple VYM's, but it comes from different sources. SCHD and VYM pay out company dividends, which companies tend to raise over time, and their share prices keep the full upside of the stocks they own. JEPI's payout is mostly option premium. It varies with market volatility rather than growing steadily, and selling calls caps how much the fund can gain in strong rallies.
In practice that means JEPI tends to hold up better in flat or choppy markets and lag in strong bull markets, while SCHD and VYM do the reverse. Over long periods of reinvesting, total return matters more than headline yield. Compare the funds on total return, not just yield, before choosing.
Taxes widen the gap in taxable accounts. SCHD and VYM pay mostly qualified dividends, taxed at long-term capital-gains rates. JEPI's option income is mostly taxed as ordinary income. If you own JEPI, an IRA or 401(k) is usually the better home. See the tax optimization guide.
| Goal | Example mix | Approx. blended yield |
|---|---|---|
| Growth-oriented income | 70% SCHD / 30% VYM | ~3.5% |
| Balanced income | 60% SCHD / 40% JEPI | ~5.7% |
| Maximum income, still diversified | 40% JEPI / 40% SCHD / 20% VYM | ~5.4% |
Blended yields are weighted averages of the trailing yields above. Test your own mix in the portfolio builder and see the month-by-month cash flow in the income visualizer.
None is best for everyone. SCHD suits investors who want a solid yield that grows over time. VYM suits those who want the broadest, most diversified dividend portfolio. JEPI suits those who need the most current income, paid monthly, and accept limited upside. Many investors combine two of them.
JEPI, at about 8.4%, versus 3.9% for SCHD and 2.5% for VYM at our last review. On $10,000 that is roughly $836 a year from JEPI, $389 from SCHD, and $245 from VYM. JEPI's income is mostly option premium, not company dividends, and it is not designed to grow.
Only JEPI pays monthly. SCHD and VYM pay quarterly, typically in March, June, September, and December.
It is a popular pairing. SCHD brings growing, mostly qualified dividends and full upside. JEPI adds high monthly income and lower volatility. A common split is 60–70% SCHD and 30–40% JEPI, with JEPI held in an IRA where its ordinary-income distributions are sheltered.
For a retiree living on the income, a blend usually beats any single fund. JEPI covers current spending, SCHD provides income that has historically grown faster than inflation, and VYM adds diversification. Younger investors who reinvest dividends usually get more from SCHD or VYM, because JEPI's capped upside compounds more slowly.