SCHD
Schwab U.S. Dividend Equity ETF
SCHD tracks the Dow Jones U.S. Dividend 100 /, focusing on companies with a history of paying dividends. Uses a quality screen for financial stability and dividend consistency.
VYM
Vanguard High Dividend Yield ETF
VYM tracks the FTSE High Dividend Yield /, investing in companies that are expected to pay above-average dividends. Broad diversification across market sectors.
Key Metrics Comparison
| Metric | SCHD | VYM | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 3.02% | SCHD |
| Expense Ratio | 0.06% | 0.06% | Tie |
| 5-Year Annual Return | 11.2% | 9.8% | SCHD |
| Dividend Growth (5Y) | 8.5% | 6.2% | SCHD |
| P/E Ratio | 15.2 | 16.8 | SCHD |
| Number of Holdings | 104 | 454 | VYM |
| Beta (5Y) | 0.85 | 0.88 | SCHD |
| Assets Under Management | $95.2B | $55.3B | VYM |
Dividend Analysis
SCHD focuses on dividend growth and consistency, requiring 10+ years of dividend payments. VYM prioritizes current dividend yield without strict historical requirements.
SCHD Advantages
- Higher dividend growth rate
- Better dividend consistency
- Quality screens for financial health
- Lower payout ratio companies
SCHD Disadvantages
- Slightly more concentrated
- May miss high-yield opportunities
- Stricter entry requirements
Performance Comparison
SCHD has outperformed VYM over most time periods due to its quality focus and growth characteristics.
VYM Advantages
- Better in high-yield environments
- More diversified across sectors
- Lower volatility in some periods
- Broader market exposure
VYM Disadvantages
- Lower total returns historically
- Slower dividend growth
- Includes some yield traps
Sector Allocation Comparison
| Sector | SCHD Allocation | VYM Allocation | Difference |
|---|---|---|---|
| Financials | 15.2% | 19.8% | -4.6% |
| Healthcare | 18.5% | 12.3% | +6.2% |
| Information Technology | 14.8% | 11.2% | +3.6% |
| Consumer Staples | 13.2% | 15.6% | -2.4% |
| Industrials | 12.5% | 10.8% | +1.7% |
| Energy | 8.2% | 12.5% | -4.3% |
| Utilities | 6.5% | 9.2% | -2.7% |
| Consumer Discretionary | 5.8% | 4.5% | +1.3% |
Top 5 Holdings
SCHD Top Holdings
| Company | Weight |
|---|---|
| Broadcom Inc. | 4.8% |
| AbbVie Inc. | 4.5% |
| Amgen Inc. | 4.3% |
| Home Depot Inc. | 4.2% |
| Texas Instruments | 4.1% |
VYM Top Holdings
| Company | Weight |
|---|---|
| JPMorgan Chase | 3.2% |
| Exxon Mobil | 3.1% |
| Johnson & Johnson | 3.0% |
| Procter & Gamble | 2.8% |
| Broadcom Inc. | 2.6% |
Investment Recommendation
SCHD is recommended for investors seeking dividend growth with a focus on quality companies. Its strict selection criteria have resulted in better historical performance and faster dividend growth.
VYM is better for investors prioritizing current income and maximum diversification. While yields are slightly lower, its broader approach provides more stability.