| Your situation | Better fit | Why |
|---|---|---|
| Dividend income with a quality screen | SCHD | SCHD selects from companies that pass cash-flow and balance-sheet tests; VYM uses forecast yield without the same financial-strength filter. |
| Broad high-yield exposure across hundreds of names | VYM | VYM holds over 600 stocks, spreading single-company risk more widely than SCHD's approximately 100 holdings. |
| Higher trailing dividend yield | SCHD | SCHD's trailing yield was higher as of September 2026; however, yields change as prices and distributions move. |
| Lowest stated annual fund expense | VYM | VYM's expense ratio is 0.04% versus SCHD's 0.06%. On $100,000 that difference is $20 a year. |
| Protection against losing principal | Neither | Both funds hold stocks. A continued dividend does not prevent a decline in portfolio value. |
Both SCHD and VYM focus on dividends, but they select stocks differently and end up with different portfolios. SCHD concentrates roughly 100 names chosen for financial quality; VYM casts a wider net across 600-plus names chosen for above-average forecast yield. The calculations below use specific dollar amounts so the trade-offs are concrete.
Fund identity
SCHD, the Schwab U.S. Dividend Equity ETF, follows the Dow Jones U.S. Dividend 100 Index, which screens for cash-flow-to-debt, return on equity, dividend yield and five-year dividend growth. VYM, the Vanguard High Dividend Yield ETF, follows the FTSE High Dividend Yield Index, which ranks U.S. large caps by forecast dividend yield and takes the higher-yielding half, weighted by market capitalization. Schwab SCHD product page; Vanguard VYM product page
Their expense ratios are 0.06% and 0.04%, respectively: $100,000 × 0.0006 = $60 versus $100,000 × 0.0004 = $40 annually at a constant balance, a $20-per-year difference. SCHD expense ratio; VYM expense ratio
Historical performance at June 30, 2026
The following NAV total returns (including reinvested distributions) come from the providers' June 30, 2026 reports. Schwab June fact sheet; Vanguard June fact sheet
| Period | SCHD | VYM |
|---|---|---|
| Year to date | 17.46% | 11.49% |
| 1 year | — | 21.52% |
| 5 year (annualized) | — | 11.78% |
| 10 year (annualized) | 12.37% | 11.61% |
SCHD's year-to-date return was higher at the same June 30 date; VYM's ten-year annualized return was within one percentage point of SCHD's. The cells marked "—" indicate that the corresponding figure was not available from the same June 30, 2026 source document used for the other fund. Mixing reporting dates would make the comparison less reliable, so those cells are left empty rather than filled from a different date. These returns describe reinvested distributions, not the cash a retiree would have spent along the way.
Concentration and stress test
SCHD's largest holding was Merck at 4.88% of fund assets as of September 8, 2026. VYM's largest holding was Broadcom at 7.35% as of the same period. SCHD's top ten totaled approximately 42.01%; VYM's top ten totaled approximately 26.11%. SCHD holdings on this site; Vanguard VYM portfolio profile
On a $100,000 portfolio, SCHD's top ten represent $42,010 and VYM's represent $26,110 — a $15,900 difference in how much money sits in the ten largest names.
If only each fund's single largest holding falls 20% and everything else stays unchanged — an assumed shock, not a forecast — the modeled portfolio losses are:
- SCHD: $100,000 × 4.88% × 20% = $976
- VYM: $100,000 × 7.35% × 20% = $1,470
VYM's larger single-name weight produces a bigger loss in this scenario despite holding six times as many stocks in total.
If instead each fund's ten largest holdings all fall 20%:
- SCHD: $100,000 × 42.01% × 20% = $8,402
- VYM: $100,000 × 26.11% × 20% = $5,222
Here VYM's wider diversification limits the damage: its top-ten concentration is lower, so the same percentage shock costs $3,180 less. SCHD's quality filter does not protect against a broad price decline across its largest positions.
Dividend income comparison
SCHD's trailing four quarterly distributions (September 2025 through June 2026) total $1.0480 per share, verified from Schwab's official records and preserved in this site's SCHD dividend history. VYM's trailing four quarterly distributions for the same period total $3.6303 per share ($0.8417 + $0.9474 + $0.8617 + $0.9795). Vanguard VYM distributions
The per-share amounts are not directly comparable because the shares trade at different prices. To compare on equal invested dollars, both yields below use official trailing distributions divided by each fund's closing market price on the same day: September 8, 2026.
| Measure | SCHD | VYM |
|---|---|---|
| TTM distributions per share | $1.0480 | $3.6303 |
| September 8, 2026 closing price | $34.41 | $164.23 |
| Trailing dividend yield | 3.05% | 2.21% |
| Annual income on $10,000 | ~$305 | ~$221 |
| Annual income on $100,000 | ~$3,046 | ~$2,210 |
| Monthly average on $100,000 | ~$254 | ~$184 |
SCHD's trailing yield calculation: $1.0480 ÷ $34.41 × 100 = 3.0456%, or 3.05% rounded, using Schwab's displayed September 8, 2026 closing price. Full calculation on this site
VYM's trailing yield calculation: $3.6303 ÷ $164.23 × 100 = 2.2105%, or 2.21% rounded, using Vanguard's September 8, 2026 closing market price. Because both calculations use the same closing date, the yield comparison is measured on an aligned denominator. Both figures describe past distributions and do not guarantee future payments. Vanguard VYM price and performance
A $100,000 portfolio allocated entirely to SCHD produced approximately $836 more annual dividend income ($3,046 versus $2,210) than the same amount in VYM, based on these trailing figures. That gap narrows or widens as distributions and prices change. Use the SCHD dividend calculator to model different holding periods and reinvestment assumptions.
Sector exposure and blending
These sector weights reflect the funds' portfolio allocations as reported by their managers. SCHD figures are from the Schwab June 30, 2026 fact sheet; VYM figures are from Vanguard's published fund profile. The equal-split column is calculated as 0.5 × SCHD weight + 0.5 × VYM weight. Schwab fact sheet; Vanguard VYM profile
| Sector | SCHD | VYM | Equal split |
|---|---|---|---|
| Financials | 9.8% | 22.0% | 15.9% |
| Consumer Staples | 20.4% | 11.8% | 16.1% |
| Health Care | 20.7% | 11.9% | 16.3% |
| Information Technology | 9.2% | 14.5% | 11.85% |
| Energy | 14.1% | 8.7% | 11.4% |
| Industrials | 6.6% | 12.4% | 9.5% |
For each sector, dollar exposure on $100,000 = $100,000 × blended weight.
A 50/50 split shifts $4,300 out of SCHD's consumer-staples overweight ($20,400 → $16,100) and adds $6,100 of financial-sector exposure ($9,800 → $15,900). Healthcare drops from $20,700 to $16,300, a $4,400 reduction; industrials rise from $6,600 to $9,500, a $2,900 increase. These dollar moves describe what actually changes in the portfolio — labels like "defensive" and "cyclical" do not capture the specific exposure shifts.
The two funds overlap less than many investors assume. SCHD overweights healthcare, consumer staples and energy relative to VYM; VYM overweights financials, technology and industrials relative to SCHD. Blending them does not cancel out sector risk — it redistributes which sectors can hurt you.
Risk statement
Neither SCHD nor VYM protects principal. Both hold stocks whose prices can fall, and underlying companies can reduce or eliminate dividends. A higher yield does not indicate a safer investment; it may simply reflect a lower share price. Past distributions and historical returns do not guarantee future payments or performance. Schwab risk disclosure; Vanguard risk disclosure