SCHD vs VYM: Which ETF Is Better in 2026?
Short answer
SCHD (Schwab US Dividend Equity ETF) tracks Dow Jones US Dividend 100 at 0.06%; VYM (Vanguard High Dividend Yield ETF) tracks FTSE High Dividend Yield at 0.06%. They give you different exposure, so pick by what you want to own: SCHD for Dow Jones US Dividend 100, VYM for FTSE High Dividend Yield. Neither is universally better.
SCHD vs VYM at a glance
| SCHD | VYM | |
|---|---|---|
| Fund | Schwab US Dividend Equity ETF | Vanguard High Dividend Yield ETF |
| Tracks | Dow Jones US Dividend 100 | FTSE High Dividend Yield |
| Expense ratio | 0.06% | 0.06% |
| Dividend yield | ~3.5% | ~2.7% |
| AUM | ~$65 billion | ~$60 billion |
| Top holding | TXN | BRK.B |
| Issuer | Charles Schwab | Vanguard |
Approximate as of early 2026; verify with each issuer.
What is SCHD?
Tracks the Dow Jones US Dividend 100 Index, which screens stocks for ten-year dividend payment history, free cash flow to debt, return on equity, and indicated dividend yield. The methodology biases the fund toward higher-quality dividend payers rather than the highest-yielding (often financially weakest) names.
What is VYM?
Tracks the FTSE High Dividend Yield Index, which simply selects above-median-yielding US stocks. Approximately 540 holdings, more diversified than SCHD but without SCHD's quality-screening methodology.
SCHD or VYM: which should you pick?
- Pick SCHD if you want Dow Jones US Dividend 100 exposure at 0.06%.
- Pick VYM if you want FTSE High Dividend Yield exposure at 0.06%.
- Overlap: they share top holdings (AVGO, HD, ABBV), so owning both adds less diversification than it appears.
- Cost: 0.06% vs 0.06%, a small but compounding difference.
The bottom line: SCHD vs VYM
SCHD (Dow Jones US Dividend 100) and VYM (FTSE High Dividend Yield) give you different exposure, so pick by what you want to own, not by which is "better". They are different enough to hold together if you want both. Walnut can show the overlap against your real portfolio before you decide.
Build a portfolio around SCHD with Walnut
Walnut connects your real brokerage so you can see how SCHD and VYM overlap with what you already own, analyze either by chatting through Claude or ChatGPT, and place any trade yourself.
FAQ
What is the difference between SCHD and VYM?
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SCHD tracks Dow Jones US Dividend 100 (0.06% expense ratio); VYM tracks FTSE High Dividend Yield (0.06%). They track different indexes, so they give you different exposure.
Is SCHD or VYM cheaper?
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SCHD charges 0.06% and VYM charges 0.06% as of early 2026. Over decades the cheaper fund keeps more of your return, but verify current figures with each issuer.
Do SCHD and VYM hold the same stocks?
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They overlap meaningfully: shared top holdings include AVGO, HD, ABBV. Owning both can mean less diversification than it looks.
Which has a higher dividend yield, SCHD or VYM?
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SCHD yields about ~3.5% and VYM about ~2.7% (early 2026, approximate). If income matters, that gap is one input, but total return and cost matter more for most long-term investors.
Should you own both SCHD and VYM?
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It can make sense if they give you genuinely different exposure, but check the overlap first so you are not paying two fees for one bet. Walnut can show the overlap against your real portfolio.
Walnut is informational, not investment advice. ETF figures are approximations stamped to early 2026; verify current data with each issuer before deciding. Nothing here is a recommendation.