SCHD
Schwab U.S. Dividend Equity ETF
SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on high dividend yield with rigorous quality screens. Requires 10+ years of dividend payments and screens for financial health metrics. 100% US exposure to quality large-cap companies.
VYMI
Vanguard International High Dividend Yield ETF
VYMI tracks the FTSE All-World ex US High Dividend Yield Index, providing exposure to high dividend-yielding stocks in developed and emerging markets outside the US. Focuses on companies with strong dividend-paying history outside the United States.
Key Metrics Comparison
| Metric | SCHD | VYMI | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 4.82% | VYMI (+1.36%) |
| Expense Ratio | 0.06% | 0.22% | SCHD (-0.16%) |
| 5-Year Annual Return | 11.2% | 5.8% | SCHD (+5.4%) |
| Number of Holdings | 104 | 1346 | VYMI |
| Assets Under Management | $95.2B | $8.1B | SCHD |
| P/E Ratio | 15.2 | 12.5 | VYMI |
| Geographic Focus | 100% US | 100% International | Complementary |
| Currency Exposure | USD Only | Multi-Currency | Different Risk Profiles |
Performance Comparison
SCHD Performance
Strong total returns from US quality companies. Higher historical returns with lower volatility. Benefit from US economic growth and dollar strength. Quality screens provide defensive characteristics.
VYMI Performance
Higher dividend yield with lower total returns. Currency fluctuations impact returns. International diversification benefits but with currency risk. Emerging markets exposure adds growth potential.
Strategy Analysis
SCHD Approach
US-focused quality dividend growth:
- Minimum 10 years of dividend payments
- Dividend yield > 2.5% requirement
- Cash flow to total debt > 50%
- Return on equity > 15%
- Market cap > $500 million
- Focus on US companies only
- Quality screens and financial health
- Concentrated in 104 quality companies
VYMI Approach
International high dividend yield:
- High dividend yield focus outside US
- Developed and emerging markets
- 1,346 holdings for broad diversification
- Currency exposure to multiple currencies
- Higher dividend yield target (4.82%)
- Focus on dividend sustainability
- Market-cap weighted within regions
- Regular rebalancing for yield maintenance
Currency Risk Analysis
SCHD has no currency risk (100% USD), while VYMI has significant currency exposure to multiple international currencies (EUR, JPY, GBP, CAD, AUD, etc.). This creates a critical diversification difference: SCHD offers pure US equity exposure, while VYMI provides currency diversification that can either help or hurt returns depending on USD strength.
SCHD Currency Profile
100% USD exposure
No currency risk for US investors
Benefits from USD strength
Simplified tax reporting
VYMI Currency Profile
Multi-currency exposure
Currency risk and potential returns
Hedges against USD weakness
Complex tax implications (foreign tax credit)
Geographic Exposure Comparison
Geographic Distribution
SCHD is 100% US-focused, while VYMI provides complete international diversification across developed and emerging markets.
SCHD Geographic
VYMI Developed
VYMI Emerging
Regional Diversification
VYMI Regional Breakdown
VYMI provides exposure to high dividend yield companies across multiple regions outside the United States.
Europe
Asia Pacific
Emerging Markets
Other Developed
Income Analysis
SCHD Income Profile
High quality dividend income from US companies with strong dividend growth history. Focus on sustainable dividends from financially healthy US corporations with yield > 2.5%.
VYMI Income Profile
Higher current yield from international dividend stocks. Many international companies have higher payout ratios. Currency fluctuations impact USD dividend amounts. Some countries have different dividend taxation policies.
Sector Allocation Comparison
SCHD Sectors (US Quality Focus)
VYMI Sectors (International High Yield)
Top Holdings Comparison
SCHD Top Holdings (US Quality)
VYMI Top Holdings (International)
Investment Recommendation
🎯 Choose SCHD If:
- You prefer US-only exposure without currency risk
- Higher total returns are your priority (11.2% vs 5.8%)
- Lower costs matter (0.06% vs 0.22%)
- Quality screens and financial health filters are important
- You want lower volatility (15.2% vs 18.5%)
- Simplified tax reporting is preferred
- You believe in US economic strength
- Dividend growth is more important than current yield
🌍 Choose VYMI If:
- Higher current income is critical (4.82% vs 3.27%)
- International diversification is your priority
- You want to hedge against USD weakness
- Emerging markets exposure appeals to you (15%)
- You're comfortable with currency risk
- Broad geographic diversification is important
- You want exposure to different economic cycles
- You can handle foreign tax credit complexity
💡 Portfolio Construction Strategy
Most investors benefit from holding both SCHD and VYMI for balanced US/international dividend exposure. Consider 60-70% SCHD (core US quality) + 30-40% VYMI (international satellite) for diversified income. This provides quality US dividend growth with international yield boost. For optimal diversification: 60% SCHD + 25% VYMI + 15% other assets. Note that VYMI's higher expense ratio (0.22%) and currency risk require careful consideration. VYMI also generates foreign tax credits that can offset some tax liability for US investors.