SCHD vs VYM

Portfolio characteristics

VYM’s SEC yield, spread, premium or discount, shares outstanding and NAV were not captured for this page. VYM’s $83.3B is ETF Central’s net-asset figure for Nov 2; Vanguard’s fact sheet shows $78.9B for the ETF share class at Sep 30 and $95.8B for the whole fund across share classes. SCHD’s market capitalization is a weighted average; VYM’s is a median, so the two are not directly comparable.

Top ten sums: SCHD 41.17% · VYM 26.2%. Vanguard rounds to one decimal. One stock, Chevron, appears in both top-ten lists. Weights change.

The sector mirror

Same funds, different lenses

Company size

SCHD (Schwab): weighted average market capitalization $174.29B. VYM (Vanguard, Sep 30): median market capitalization $171.0B. Different measures, so treat them as the same order of magnitude: both are overwhelmingly large-company funds, and VYM adds many smaller names across its 593 holdings.

What you actually own

Average annual: Schwab and Vanguard, Sep 30, 2026. “Since inception” starts in different years (SCHD 2011, VYM 2006), so do not compare those two columns. SCHD after-tax returns are Schwab’s highest historical federal rates; Vanguard’s fact sheet does not show them. Calendar years: TotalRealReturns, both funds. Past performance does not guarantee future results.

Growth of a hypothetical $10,000 · NAV total return to Sep 30, 2026

Both funds derived from the issuers’ annualized NAV returns (compounded). Distributions reinvested, fund expenses deducted. Illustration, not a forecast.

Quarterly payouts per share, newest first

Single payouts are noisy; a four-quarter comparison is steadier. Computed from the distribution tables above.

Rank by rank, the ten largest positions of each fund. SCHD: Schwab (Nov 5). VYM: Vanguard (Sep 30). Top five: SCHD 21.4%, VYM 18.2%. Top ten: SCHD 41.2%, VYM 26.2%.

Both trade on NYSE Arca. A spread of 0.03% is about $30 between the buy and sell price on $100,000. VYM’s spread, premium or discount and share count were not captured for this page, so check them on Vanguard’s fund page before placing a large trade. Use limit orders for large trades and avoid the first and last minutes of the session. See creation, redemption and trading for how NAV, premiums and spreads arise.

Expense ratio is taken from fund assets, not billed. It excludes the bid/ask spread, any premium or discount to NAV, brokerage commissions and taxes. VYM’s 0.04% is from Vanguard’s most recent prospectus as shown on its fact sheet; SCHD’s 0.06% is from Schwab.

Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.

SCHD’s higher yield comes from how the two indexes are built. SCHD’s index keeps about 100 stocks selected for dividend quality and sustainability, which concentrates it in mature staples, health care and energy companies that pay a lot. VYM’s index holds every U.S. stock with an above-average forecast yield, which gives 593 holdings and a lot of financials, technology and industrials with lower yields.

The return pattern flips with the window. SCHD led over the latest year (23.36% vs 12.72%) and over 10 years (12.44% vs 11.28%), while VYM led over 3 years (17.67% vs 15.44%) and 5 years (11.63% vs 9.48%) and in each calendar year from 2022 to 2025. Sector tilt is the simplest explanation, not proof: leadership can reverse, and a higher yield is not a promise of higher total return. Read yield vs total return before choosing on yield alone.

Start with what separates them. Yield favors SCHD: 3.24% trailing against 2.24%, which on a $100,000 balance implies roughly $3,240 a year against $2,240 at those yields before taxes, if yields held (they change). Cost favors VYM by 0.02 points, or $2 a year on $10,000. Breadth favors VYM: 593 stocks against about 102, and a flatter top ten.

Then check what you already own. Only one top-ten stock is shared, but sector weights overlap by about 75%, so holding both adds less than it looks. If you already hold a broad U.S. fund such as VOO or VTI, either fund adds a dividend tilt on top of what you own.

• Step 1 · Goal: income today and a quality screen (SCHD) or a broad, low-cost high-yield list (VYM).
• Step 2 · Overlap: compare each fund with your existing index funds using the Diversification Calculator.
• Step 3 · Sectors: accept a defensive, energy-heavy mix (SCHD) or more financials, technology and industrials (VYM).
• Step 4 · Cost: VYM saves $2 a year per $10,000, which is small next to the yield gap.
• Step 5 · Account: consider how dividends are taxed in your account type.

Most investors would pick one rather than both. If you want a fund built on dividend growth instead, SCHD vs VIG and SCHD vs DGRO show how a dividend growth fund differs. Size the position against your whole portfolio.

SCHD and VYM are U.S.-listed and trade in U.S. dollars, so buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost on both entry and exit. Currency moves also change your return in Canadian dollars even if the funds are flat in U.S. dollars.

U.S. dividends paid to Canadian residents can be subject to U.S. withholding tax, generally 15% under the Canada-U.S. tax treaty. Registered accounts are treated differently: an RRSP is generally exempt from that withholding on U.S. dividends, while a TFSA is not. In a taxable account the withheld amount may be claimable through the foreign tax credit. Because SCHD yields more, the withholding in dollar terms is larger on a given balance.

Canadians holding U.S.-listed assets above a modest threshold may also face U.S. estate tax exposure, which treaty relief can reduce. This is general education, not tax advice; confirm the rules for your situation with a cross-border tax professional.

Both funds invest in U.S. stocks and pay quarterly. VYM’s turnover is low (11.3% in its latest fiscal year), which usually limits taxable distributions; SCHD’s turnover was 40.61% at Sep 30, 2026. SCHD paid no capital gains in the latest eight distributions; VYM’s capital gains history was not captured. U.S. taxpayers may see some dividends taxed at lower qualified rates if holding-period rules are met.

Schwab’s after-tax return for SCHD to Sep 30, 2026 was 21.86% over one year before selling shares and 13.95% after selling; Vanguard’s fact sheet does not show an equivalent for VYM. For Canadian account types and withholding tax, see the Canadian section above. Confirm the rules for your account with a tax professional, and read how to build an ETF portfolio.

Investors comparing SCHD and VYM often also look at Vanguard Dividend Appreciation (VIG), iShares Core Dividend Growth (DGRO), iShares Core High Dividend (HDV) and ProShares S&P 500 Dividend Aristocrats (NOBL). See SCHD vs VIG, SCHD vs DGRO, SCHD vs HDV, SCHD vs NOBL and SCHD vs VTI. Broad funds such as VTI and VOO already hold many of the same companies, so check overlap before adding a dividend fund to a core portfolio. See every dividend fund side by side on the Dividend ETFs page.

Is SCHD or VYM better?

Neither is better for everyone. SCHD pays a higher yield (3.24% trailing against 2.24% for VYM) and led over 1 and 10 years to Sep 30, 2026. VYM costs less (0.04% against 0.06%), holds 593 stocks against about 102, and led SCHD in each calendar year from 2022 to 2025. The right choice depends on whether you value yield and a quality screen or breadth and low cost.

Which pays the higher dividend yield, SCHD or VYM?

SCHD. Its 30-day SEC yield was 3.12% (Nov 5, 2026) and its trailing 12-month yield 3.24% (Sep 30). VYM’s trailing yield was 2.24% (ETF Central, Nov 2) and about 2.31% on StockAnalysis’s figure; its SEC yield was not captured. VYM pays more dollars per share only because its share price is higher.

What are the expense ratios of SCHD and VYM?

SCHD’s expense ratio is 0.06%, or $6 a year per $10,000. VYM’s is 0.04% per Vanguard’s most recent prospectus, or $4 a year per $10,000.

How much do SCHD and VYM overlap?

Only one stock, Chevron, appears in both top-ten lists. By this page’s own sector arithmetic, the two funds overlap about 75% by sector weight, because both hold large U.S. dividend payers. A fund-level weight overlap was not captured.

What index does each ETF track?

SCHD tracks the Dow Jones U.S. Dividend 100 Index. VYM tracks the FTSE High Dividend Yield Index. Both are passive, quarterly-paying U.S. dividend funds listed on NYSE Arca.

What are the top holdings of SCHD and VYM?

SCHD’s largest positions on Nov 5, 2026 were Procter & Gamble (4.45%), Home Depot (4.32%), Texas Instruments (4.29%), Coca-Cola (4.27%) and Amgen (4.09%). VYM’s largest on Sep 30, 2026 were Broadcom (6.9%), JPMorgan Chase (3.8%), Exxon Mobil (2.8%), Johnson & Johnson (2.7%) and AbbVie (2.0%).

Which has performed better, SCHD or VYM?

It depends on the window. To Sep 30, 2026 SCHD led over 1 year (23.36% vs 12.72%) and 10 years (12.44% vs 11.28%), and VYM led over 3 years (17.67% vs 15.44%) and 5 years (11.63% vs 9.48%), annualized on NAV. VYM led each calendar year from 2022 to 2025; SCHD led 2026 year to date. Past performance does not guarantee future results.

Which grew its dividend faster?

VYM’s last four payouts total $3.676 per share, about 4.5% above the prior four. SCHD’s last four total $1.054, about 2.0% above the prior four. Short windows are noisy and past growth does not guarantee future growth.

How do SCHD and VYM differ by sector?

SCHD (Sep 30, 2026) was 20.0% consumer staples, 19.2% health care and 15.4% energy. VYM (Sep 30, 2026) was 20.4% financials, 14.3% technology, 13.6% industrials and 13.4% health care, with 5.4% in utilities and no real estate.

Can I own both SCHD and VYM?

You can. They share only one top-ten stock but overlap by about 75% by sector weight, so owning both adds less diversification than it seems. Check your combined overlap with a diversification calculator and size positions against your whole portfolio.

Which is less volatile, SCHD or VYM?

VYM’s three-year standard deviation was 11.11% against 13.75% for SCHD at Sep 30, 2026, and VYM’s turnover is much lower (11.3% against 40.61%). Maximum drawdowns were reported for different periods: about 33.4% for SCHD’s worst decline in a decade (BestETF) and 14.4% for VYM over three years (ETF Central), so do not compare those two figures.

Are SCHD and VYM suitable for Canadian investors?

Both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and may face U.S. withholding tax on dividends. Treatment differs across TFSA, RRSP and taxable accounts. This is general education, not tax advice; confirm with a tax professional.

Third-party sources

StockAnalysis · TotalRealReturns · ETF Central · BestETF.

Methodology and limits

• SCHD figures come from Schwab (Nov 5–6 and Sep 30, 2026). VYM figures come from Vanguard’s fact sheet (Sep 30, 2026) and ETF Central (Nov 2–3, 2026).
• Top-ten holdings are Schwab (Nov 5) for SCHD and Vanguard (Sep 30) for VYM, so dates differ by about five weeks.
• Sector overlap of 75% is this page’s sum of the smaller sector weight in each fund (both Sep 30, 2026). Fund-level weight overlap, daily-move correlation, VYM SEC yield, spread, premium or discount, shares outstanding and capital gains history were not captured.
• Calendar-year returns for both funds come from TotalRealReturns (nominal, dividends reinvested), as of Nov 6, 2026.
• Growth of $10,000 is derived from each issuer’s annualized NAV returns; dollar values are approximate.
• Drawdowns: SCHD is BestETF’s 10-year worst decline; VYM is ETF Central’s three-year maximum drawdown. They cover different periods and are third party.
• Index rules summarize provider descriptions; confirm eligibility rules, caps and rebalance dates in each prospectus.

Pathways, not rankings or recommendations.