How do the expense ratios of SCHD and VYM compare?

The expense ratio represents the annual fee deducted from a fund's assets. SCHD has a stated expense ratio of 0.06%, while VYM is lower at 0.04%. This creates a 0.02 percentage point difference. For investors, a lower expense ratio theoretically leaves more money to compound over time, though both funds offer competitive fees within their respective categories. Understanding these costs is crucial for long-term planning.

How do dividend yields differ between SCHD and VYM?

SCHD offers a higher dividend yield of 3.11%, whereas VYM provides a yield of 2.31%. Dividend yield is calculated as the annual dividend payment divided by the share price. A higher yield can be attractive for income-focused investors, but it is essential to remember that yields change based on both distribution amounts and market prices. Investors should assess the stability of the underlying companies rather than just the headline yield figure.

What are the key differences in holdings between the two funds?

While SCHD and VYM are both large-value ETFs, their top ten holdings show significant divergence. The only companies appearing in both top ten lists are MRK and CVX, though their weightings differ substantially. SCHD features a more evenly distributed portfolio with holdings like ABT and AMGN, while VYM has a notably higher concentration in AVGO. Investors should consider whether a broad distribution or a concentrated portfolio of top holdings aligns with their risk tolerance.

Which fund is considered more established based on inception dates?

VYM has a longer operational history, with an inception date of 10 November 2006. In comparison, SCHD was established later on 20 October 2011. A longer track record allows for a more extensive review of how a fund performed during various market conditions, including periods of high inflation or recessions. However, SCHD still has over a decade of trading history, providing sufficient data for most long-term evaluation purposes.

What are the top ten holdings for SCHD?

SCHD’s top ten holdings include MRK (4.89%), ABT (4.48%), and AMGN (4.28%). Other significant positions are KO (4.27%), CVX (4.25%), COP (4.08%), and PG (4.02%). The list is rounded out by VZ (3.95%), UNH (3.80%), and HD (3.69%). This composition highlights a focus on established companies across various sectors, primarily within the healthcare, consumer staples, and energy industries.

What are the top ten holdings for VYM?

VYM’s largest positions are led by AVGO at 6.93%, followed by JPM (3.83%) and XOM (2.69%). The top ten also includes JNJ, ABBV, CSCO, BAC, CVX, MRK, and CAT. Compared to SCHD, VYM's portfolio features a higher weight in technology and financials, and it includes a more diversified selection of large-cap stocks across different sectors of the economy.

How do these ETFs track their specific indices?

In the provided data, the specific index tracked by both SCHD and VYM is listed as 'not available'. ETFs typically use either full replication or sampling to match their benchmark. Since the index names are not specified, it is not possible to determine the exact methodology or the universe of stocks they are intended to follow. Investors should consult official fund documents for details on the specific benchmarks and the tracking methodology.

Is it possible to determine sector weights for these funds?

Based on the current comparison data, sector weight information for both SCHD and VYM is not available. Sector weights indicate how a fund's assets are distributed across industries like Technology, Healthcare, or Energy. Without this data, it is difficult to assess if one fund is more diversified than the other or if they carry similar industry concentrations. Investors should review the latest fact sheets from the issuers for up-to-date sector breakdowns.

How do the total net assets of the funds compare?

SCHD currently holds $112.8 billion in net assets, which is larger than VYM's $80.9 billion. Net assets represent the total value of all the holdings within the fund. While both funds are substantial in size, a larger asset base can sometimes lead to greater liquidity and the ability to absorb large inflows or outflows with less impact on tracking error, though both are well-capitalised vehicles for dividend investing.

What is the stated investment category for these ETFs?

Both SCHD and VYM are classified as 'Large Value' funds. This category generally includes established companies that are perceived to be undervalued relative to their earnings or book value, as opposed to 'Large Growth' firms which are expected to grow revenue rapidly. Large Value stocks often provide consistent cash flows and dividends, making them a common choice for investors seeking income alongside stability in developed markets.

Who are the issuers behind these dividend ETFs?

SCHD is issued by Schwab, a major brokerage and financial services company. VYM is an ETF provided by Vanguard, one of the world's largest fund providers known for its indexing approach. The reputation of the issuer can be important for some investors regarding fund management practices and administrative reliability, though both firms are established giants in the investment management industry.

What educational disclaimer applies to this comparison?

This comparison is for educational purposes only and does not constitute financial advice. The data provided regarding SCHD and VYM, including yields, assets, and expense ratios, are subject to change over time. Investors should always verify information from official sources and consider their personal financial situation, time horizon, and risk tolerance before making any investment decisions. Past performance, such as the track records of these funds, is not a reliable indicator of future results.

SCHD vs VYM

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

SCHD vs VYM compares the Schwab US Dividend Equity ETF and the Vanguard High Dividend Yield ETF. The page examines expense ratios of 0.06% and 0.04%, dividend yields of 3.11% and 2.31%, and top holdings including MRK and CVX. It also considers how each fund tracks its index focus and its stated category of Large Value. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHD

Metric

VYM

0.06%

Expense Ratio

0.04%

3.11%

Dividend Yield

2.31%

$112.77B

Net Assets

$80.88B

102

Holdings

613

Oct 20, 2011

Inception Date

Nov 10, 2006

–

Index Tracked

–

Large Value

Fund Category

Large Value

VYM costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SCHD	VYM
MRKMerck & Co., Inc.	4.89%	1.47%
CVXChevron Corporation	4.25%	1.54%

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Investment Analysis

SCHD

Pros

Larger net assets of $112.8 billion and a high dividend yield of 3.11% support scale and income generation.
Diversified top holdings across sectors enhance stability compared to funds with significant single-stock concentrations.
Established track record since October 2011 demonstrates proven execution over a decade in the market.

Considerations

Slightly higher expense ratio of 0.06% compared to the lower-cost alternatives available in the market.
Specific sector weights and the index tracked are not available, limiting transparency on its underlying composition.
Potential for lower growth due to the dividend focus and value categorisation, affecting total return prospects.

VYM

Pros

The lowest expense ratio of 0.04% enhances net returns for investors seeking cost-effective dividend exposure.
A long track record since November 2006 provides extensive historical performance data for evaluation.
Inclusion of top holdings like AVGO and JPM offers a mix of growth and financial stability.

Considerations

Concentration risk is elevated as Broadcom comprises 6.93% of the fund's total holdings.
The lower yield of 2.31% might be less appealing for income-focused investors seeking higher payouts.
Information on sector weights and the specific index tracked is not available for detailed analysis.

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About SCHD and VYM

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

VYM (VYM)

The Vanguard High Dividend Yield ETF is designed to provide investors with exposure to a broad range of high-dividend-paying stocks listed in the US. With a low expense ratio of 0.04% and over 600 holdings, the fund aims to deliver income while maintaining diversification. Its dividend yield sits at 2.31%, reflecting its focus on companies with strong payout traditions. This ETF suits those seeking a steady income stream as part of a long-term strategy, though values can rise and fall. Returns are not guaranteed. Always consider your personal circumstances before investing.

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SCHD vs VYM

Fund Snapshot