SCHD vs. VYM
Compare and contrast key facts about Schwab US Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM).
SCHD and VYM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011. VYM is a passively managed fund by Vanguard that tracks the performance of the FTSE High Dividend Yield Index. It was launched on Nov 10, 2006. Both SCHD and VYM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SCHD or VYM.
Key characteristics
SCHD | VYM | |
---|---|---|
YTD Return | 6.21% | 8.61% |
1Y Return | 16.75% | 20.91% |
3Y Return (Ann) | 6.45% | 9.11% |
5Y Return (Ann) | 12.79% | 10.55% |
10Y Return (Ann) | 11.66% | 10.18% |
Sharpe Ratio | 1.47 | 1.96 |
Daily Std Dev | 11.53% | 10.83% |
Max Drawdown | -33.37% | -56.98% |
Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between SCHD and VYM is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SCHD vs. VYM - Performance Comparison
In the year-to-date period, SCHD achieves a 6.21% return, which is significantly lower than VYM's 8.61% return. Over the past 10 years, SCHD has outperformed VYM with an annualized return of 11.66%, while VYM has yielded a comparatively lower 10.18% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
SCHD vs. VYM - Expense Ratio Comparison
Risk-Adjusted Performance
SCHD vs. VYM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab US Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
---|---|---|---|---|---|
Schwab US Dividend Equity ETF | 1.47 | ||||
Vanguard High Dividend Yield ETF | 1.96 |
Dividends
SCHD vs. VYM - Dividend Comparison
SCHD's dividend yield for the trailing twelve months is around 3.33%, more than VYM's 2.83% yield.
TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Schwab US Dividend Equity ETF | 3.33% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% | 2.63% | 2.47% |
Vanguard High Dividend Yield ETF | 2.83% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% | 2.78% | 2.81% |
Drawdowns
SCHD vs. VYM - Drawdown Comparison
The maximum SCHD drawdown since its inception was -33.37%, smaller than the maximum VYM drawdown of -56.98%. The drawdown chart below compares losses from any high point along the way for SCHD and VYM
Volatility
SCHD vs. VYM - Volatility Comparison
Schwab US Dividend Equity ETF (SCHD) has a higher volatility of 2.69% compared to Vanguard High Dividend Yield ETF (VYM) at 2.32%. This indicates that SCHD's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.