# SCHD vs VYM: fees, holdings and returns compared

> SCHD vs VYM: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

SCHD holds about 100 US companies picked for paying steady dividends and having strong finances. VYM holds about 590 US companies that pay higher dividends than average. SCHD is more selective, so it holds fewer companies. Over the same dates since October 2011, SCHD returned about 13.5% a year and VYM returned about 12.6% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 16, 2026.

## Key points

- VYM costs less: 0.04% a year against 0.06%.
- SCHD started trading in October 2011. VYM started in November 2006.
- Worst drops since 2011: SCHD −33.4%, VYM −35.2%.
- Daily correlation: 0.97 (1 means they always move together).

## What is the difference between SCHD and VYM?

Both aim at dividend-paying US stocks but use different rules. SCHD tracks the Dow Jones U.S. Dividend 100 Index, which screens for at least 10 years of dividends and ranks companies on cash flow, debt, return on equity, dividend yield and dividend growth. VYM tracks the FTSE High Dividend Yield Index, which picks US stocks with higher than average expected dividend yields and leaves out real estate trusts. Fewer holdings make SCHD less spread out.

| Fact | SCHD | VYM |
| --- | --- | --- |
| Full name | Schwab U.S. Dividend Equity ETF | Vanguard High Dividend Yield ETF |
| Issuer | Schwab | Vanguard |
| Expense ratio | 0.06% a year | 0.04% a year |
| Started trading | October 20, 2011 | November 10, 2006 |
| Tracks | Dow Jones U.S. Dividend 100 Index | FTSE High Dividend Yield Index |
| Holdings | 98 holdings as of February 28, 2026 | 593 holdings as of September 30, 2026 |
| Type | US stocks, ETF | US stocks, ETF |

Fund facts checked on the [Schwab SCHD page](https://www.sec.gov/Archives/edgar/data/1454889/000110465926020681/tm266454-15_497k.htm) and the [Vanguard VYM page](https://investor.vanguard.com/investment-products/etfs/profile/vym).

## Is SCHD or VYM cheaper?

VYM costs less: 0.04% a year against 0.06%. On $10,000, that is about $6 a year for SCHD and $4 for VYM. The fund takes its fee out of its own value a little each day, so you never get a bill.

## SCHD vs VYM performance over the same dates

Both funds are measured from October 2011 to October 2026, the dates both traded. SCHD returned about 13.5% a year and VYM returned about 12.6% a year. SCHD came out ahead over this period, which does not mean it will again.

| Measure | SCHD | VYM |
| --- | --- | --- |
| $10,000 grew to | $66,323 | $58,940 |
| Total return | 563.2% | 489.4% |
| Return per year (CAGR) | 13.5% | 12.6% |
| Worst drop from a high | −33.4% | −35.2% |
| Volatility (how much it swings) | 15.3% | 15.1% |
| Last 12 months | 33.8% | 17.7% |
| Last 3 years, per year | 17.3% | 18.9% |
| Last 5 years, per year | 9.8% | 11.5% |
| Last 10 years, per year | 13.3% | 11.8% |

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## SCHD and VYM returns by year

| Year | SCHD | VYM |
| --- | --- | --- |
| 2026 (part of the year) | 28.3% | 13.6% |
| 2025 | 4.3% | 15.4% |
| 2024 | 11.7% | 17.6% |
| 2023 | 4.5% | 6.6% |
| 2022 | −3.3% | −0.4% |
| 2021 | 29.9% | 26.2% |
| 2020 | 15.0% | 1.1% |
| 2019 | 27.3% | 24.1% |
| 2018 | −5.6% | −5.9% |
| 2017 | 20.8% | 16.4% |
| 2016 | 16.4% | 17.0% |
| 2015 | −0.3% | 0.3% |
| 2014 | 11.7% | 13.5% |
| 2013 | 32.9% | 30.1% |
| 2012 | 11.4% | 12.7% |
| 2011 (part of the year) | 5.3% | 6.3% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. SCHD's worst fall was −33.4%, from January 23, 2020 to March 23, 2020. It got back to that high on September 2, 2020.

VYM's worst fall was −35.2%, from January 17, 2020 to March 23, 2020. It got back to that high on December 31, 2020.

Their daily moves had a correlation of 0.97. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

## Why people choose SCHD or VYM

**SCHD.** People who want a short list of dividend payers screened for quality tend to pick SCHD.

**VYM.** People who want a broader set of higher-dividend companies tend to pick VYM.

## Strategies that hold SCHD or VYM

No classic strategy holds SCHD or VYM yet.

## Other funds like SCHD and VYM

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [SCHD alternatives](https://tactfolio.com/alternatives/SCHD.md) and [VYM alternatives](https://tactfolio.com/alternatives/VYM.md).

## Test a mix of SCHD and VYM

Open the [builder](https://tactfolio.com/builder), add SCHD and VYM, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [SCHD](https://tactfolio.com/etf/SCHD.md) and [VYM](https://tactfolio.com/etf/VYM.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Dividend calculator](https://tactfolio.com/trading-tools/dividend-calculator): See the income your shares could pay over the years, with or without reinvesting (DRIP), with the formula and an example.
- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.

## Common questions

### Do SCHD and VYM hold the same stocks?

Some overlap, because both buy large dividend payers. VYM holds many more companies, about 590 against about 100 for SCHD.

### Will these funds always pay the same dividends?

No. Companies can cut or stop dividends, and the funds pass on what they receive. A fund's dividend changes over time.

### Which is cheaper, SCHD or VYM?

VYM costs less: 0.04% a year against 0.06%. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, SCHD or VYM?

From October 2011 to October 2026, SCHD returned about 13.5% a year and VYM returned about 12.6% a year, with dividends reinvested. Their worst drops were −33.4% and −35.2%. Past returns do not tell you what comes next.

## Sources

- [Schwab: Schwab U.S. Dividend Equity ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000110465926020681/tm266454-15_497k.htm)
- [Vanguard: Vanguard High Dividend Yield ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vym)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.