What's the main difference between SCHD and VYM?

SCHD is a dividend-growth etf from Charles Schwab; VYM is a high-dividend etf from Vanguard. Two popular Vanguard-versus-Schwab income staples: dividend growth (SCHD) versus a higher current yield (VYM).

Does SCHD or VYM pay more dividends?

It depends on current figures, which change — use the calculators linked below with each fund's live yield rather than a fixed number. As a rule, higher-yield funds pay more today, while dividend-growth funds start lower and raise the payout over time.

Which is better, SCHD or VYM?

Neither is universally better — they suit different goals. SCHD fits an investor who wants a rising dividend over time rather than the highest starting yield; VYM fits one who wants a higher current yield from a diversified large-cap base. Match the fund to your objective, time horizon, and tax situation, and consider a licensed advisor.

Can I hold both SCHD and VYM?

Many investors do, to blend current income with growth. Just be aware of overlap — if both hold similar large-cap US stocks, you may be less diversified than the two tickers suggest.

SCHD vs VYM

Two popular Vanguard-versus-Schwab income staples: dividend growth (SCHD) versus a higher current yield (VYM). Here’s how SCHD and VYM compare for dividend investors — with a calculator for each so you can model the income yourself.

SCHD

Schwab U.S. Dividend Equity ETF

Type: Dividend-growth ETF
Issuer: Charles Schwab
Pays: quarterly

SCHD tracks the Dow Jones U.S. Dividend 100 Index, which screens for companies with a long record of paying dividends plus quality and financial-strength filters. It is one of the most widely held dividend-growth ETFs, favoured for its low expense ratio and steadily rising payout.

SCHD dividend calculator

VYM

Vanguard High Dividend Yield ETF

Type: High-dividend ETF
Issuer: Vanguard
Pays: quarterly

VYM tracks the FTSE High Dividend Yield Index, weighting toward established U.S. companies that pay above-average dividends. It aims for a higher current yield than the broad market while keeping a diversified, large-cap profile.

VYM dividend calculator

How SCHD and VYM differ

SCHD — SCHD tracks the Dow Jones U.S. Dividend 100 Index, which screens for companies with a long record of paying dividends plus quality and financial-strength filters. It is one of the most widely held dividend-growth ETFs, favoured for its low expense ratio and steadily rising payout.

VYM — VYM tracks the FTSE High Dividend Yield Index, weighting toward established U.S. companies that pay above-average dividends. It aims for a higher current yield than the broad market while keeping a diversified, large-cap profile.

In practice the choice comes down to your goal. SCHD suits an investor who wants a rising dividend over time rather than the highest starting yield, while VYM suits one who wants a higher current yield from a diversified large-cap base. The two are not mutually exclusive — plenty of portfolios hold a growth-oriented fund and an income-oriented one together. What matters is matching each to its job and not judging a fund on its headline yield alone.

Rather than compare a single snapshot yield (which moves daily), open each calculator and enter current figures: the SCHD calculator and the VYM calculator. To compare long-term compounding head to head, run the same contributions through the dividend reinvestment calculator with each fund’s assumptions.

Educational comparison only — not a recommendation to buy or sell either fund. Yields and strategies change; verify current figures and consider a licensed advisor.

SCHD vs VYM FAQ

What's the main difference between SCHD and VYM?: SCHD is a dividend-growth etf from Charles Schwab; VYM is a high-dividend etf from Vanguard. Two popular Vanguard-versus-Schwab income staples: dividend growth (SCHD) versus a higher current yield (VYM).
Does SCHD or VYM pay more dividends?: It depends on current figures, which change — use the calculators linked below with each fund's live yield rather than a fixed number. As a rule, higher-yield funds pay more today, while dividend-growth funds start lower and raise the payout over time.
Which is better, SCHD or VYM?: Neither is universally better — they suit different goals. SCHD fits an investor who wants a rising dividend over time rather than the highest starting yield; VYM fits one who wants a higher current yield from a diversified large-cap base. Match the fund to your objective, time horizon, and tax situation, and consider a licensed advisor.
Can I hold both SCHD and VYM?: Many investors do, to blend current income with growth. Just be aware of overlap — if both hold similar large-cap US stocks, you may be less diversified than the two tickers suggest.

See all dividend ETF comparisons →