SCHD vs VYM: Head-to-Head Comparison

Two of the most popular low-cost dividend ETFs. Both charge 0.06% but take very different approaches to dividend investing.

Metric SCHD VYM Winner
Dividend Yield 3.89% 2.45% SCHD
Expense Ratio 0.06% 0.06% Tie
Assets Under Management $71.0B $84.0B VYM
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

SCHD Strengths

  • Higher Yield: 3.89% vs 2.45% - nearly 60% more income
  • Quality Focus: Screens for strong fundamentals and sustainability
  • Dividend Growth: Emphasizes companies with 10+ years of increases
  • Concentrated Exposure: ~100 screened dividend payers
  • Quality Screen: Return-on-equity and cash-flow filters narrow the universe

Best For

Investors prioritizing current income and quality over maximum diversification.

VYM Strengths

  • Broader Diversification: 500+ holdings vs 100
  • Longer Track Record: Launched in 2006 vs 2011
  • Larger AUM: $84B provides excellent liquidity
  • Lower Concentration Risk: More balanced exposure
  • Vanguard Structure: Low expense ratio and large liquid fund

Best For

Investors seeking maximum diversification across dividend-paying companies.

The Verdict: Which Should You Choose?

Choose SCHD if: You prioritize higher current income (3.89% 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 (2.45%) is offset by broader market exposure.

The Best Answer: Many investors hold both. SCHD for quality and yield, VYM for diversification. With identical 0.06% expense ratios, there's no cost penalty for owning both.