VYM vs. SCHC

Last updated Jun 9, 2026

VYM (Vanguard High Dividend Yield ETF) and SCHC (Schwab International Small-Cap Equity ETF) are both exchange-traded funds - VYM is a Dividend fund tracking the FTSE High Dividend Yield Index, while SCHC is a Foreign Small & Mid Cap Equities fund tracking the FTSE Custom Developed Small Cap ex-US Liquid Net of Tax (Lux). Both are passively managed. Over the past 10 years, VYM returned 11.70%/yr vs 7.91%/yr for SCHC. A 0.74 correlation means they provide meaningful diversification when combined. VYM charges 0.04%/yr vs 0.11%/yr for SCHC.

Performance

VYM vs. SCHC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High Dividend Yield ETF (VYM) and Schwab International Small-Cap Equity ETF (SCHC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VYM achieves a 10.82% return, which is significantly higher than SCHC's 6.81% return. Over the past 10 years, VYM has outperformed SCHC with an annualized return of 11.70%, while SCHC has yielded a comparatively lower 7.91% annualized return.

VYM

• 1D: -0.08%
• 1M: 1.71%
• YTD: 10.82%
• 6M: 10.58%
• 1Y: 24.30%
• 3Y*: 17.89%
• 5Y*: 11.33%
• 10Y*: 11.70%

SCHC

• 1D: 0.04%
• 1M: -5.20%
• YTD: 6.81%
• 6M: 9.38%
• 1Y: 23.23%
• 3Y*: 16.78%
• 5Y*: 5.72%
• 10Y*: 7.91%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VYM vs. SCHC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	10.82%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
SCHC Schwab International Small-Cap Equity ETF	6.81%	37.59%	1.97%	14.36%	-21.74%	12.02%	10.48%	23.10%	-18.60%	29.42%

Correlation

The correlation between VYM and SCHC is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Jan 15, 2010	0.74

The correlation between VYM and SCHC has been stable across timeframes, ranging from 0.66 to 0.74 - a consistent structural relationship.

VYM vs. SCHC - Sectors Allocation Comparison

Sectors	VYM	SCHC
Financial Services	20.5%	12.6%
Technology	17.7%	9.2%
Healthcare	12.2%	6.5%
Industrials	12.1%	22.4%
Energy	9.8%	6.5%
Consumer Defensive	8.1%	4.1%
Consumer Cyclical	6.7%	10.0%
Utilities	5.7%	3.2%
Communication Services	3.5%	3.2%
Basic Materials	3.5%	13.7%
Real Estate	0.0%	8.6%

Return for Risk

VYM vs. SCHC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VYM

VYM Risk / Return Rank: 80
VYM Sharpe Ratio Rank: 81
VYM Sortino Ratio Rank: 83
VYM Omega Ratio Rank: 80
VYM Calmar Ratio Rank: 78
VYM Martin Ratio Rank: 78

SCHC

SCHC Risk / Return Rank: 45
SCHC Sharpe Ratio Rank: 47
SCHC Sortino Ratio Rank: 45
SCHC Omega Ratio Rank: 47
SCHC Calmar Ratio Rank: 42
SCHC Martin Ratio Rank: 47

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VYM vs. SCHC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and Schwab International Small-Cap Equity ETF (SCHC). 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.

	VYM	SCHC	Difference
Sharpe ratio: Return per unit of total volatility	2.36	1.47	+0.89
Sortino ratio: Return per unit of downside risk	3.36	2.05	+1.31
Omega ratio: Gain probability vs. loss probability	1.43	1.27	+0.16
Calmar ratio: Return relative to maximum drawdown	3.65	1.87	+1.78
Martin ratio: Return relative to average drawdown	13.64	7.03	+6.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VYM vs. SCHC - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.36, which is higher than the SCHC Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of VYM and SCHC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VYM	SCHC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.36	1.47	+0.89
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.33	+0.49
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.72	0.44	+0.28
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.39	+0.12

Drawdowns

VYM vs. SCHC - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, which is greater than SCHC's maximum drawdown of -43.94%. Use the drawdown chart below to compare losses from any high point for VYM and SCHC.

Drawdown Indicators

	VYM	SCHC	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-43.94%	-13.04%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-12.48%	+5.79%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-15.52%	+1.06%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-36.48%	+20.64%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-43.94%	+8.73%
Current Drawdown Current decline from peak	-1.89%	-5.65%	+3.76%
Average Drawdown Average peak-to-trough decline	-7.19%	-10.05%	+2.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.79%	3.31%	-1.52%

Volatility

VYM vs. SCHC - Volatility Comparison

The current volatility for Vanguard High Dividend Yield ETF (VYM) is 2.82%, while Schwab International Small-Cap Equity ETF (SCHC) has a volatility of 5.47%. This indicates that VYM experiences smaller price fluctuations and is considered to be less risky than SCHC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VYM	SCHC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.82%	5.47%	-2.65%
Volatility (6M) Calculated over the trailing 6-month period	7.73%	13.49%	-5.76%
Volatility (1Y) Calculated over the trailing 1-year period	10.35%	15.86%	-5.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.98%	17.56%	-3.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.35%	18.02%	-1.67%

VYM vs. SCHC - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than SCHC's 0.11% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VYM vs. SCHC - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.22%, less than SCHC's 3.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHC Schwab International Small-Cap Equity ETF	3.43%	3.66%	3.72%	2.94%	1.78%	3.02%	1.62%	3.23%	2.51%	2.73%	2.01%	2.34%
VYM Vanguard High Dividend Yield ETF	2.22%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both VYM and SCHC in my portfolio?

VYM and SCHC have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VYM or SCHC?

SCHC has higher volatility (5.47%) compared to VYM (2.82%). In terms of maximum drawdown, VYM dropped -56.98% vs SCHC's -43.94%.

Which ETF is better, VYM or SCHC?

On 10-year performance, VYM leads with 11.70% vs 7.91% for SCHC. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 2.82%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VYM or SCHC?

Over the 10-year period, VYM has performed better with a 11.70% return vs 7.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VYM or SCHC?

VYM is cheaper with a 0.04% expense ratio, compared with 0.11% for SCHC.

Which ETF pays a higher dividend yield, VYM or SCHC?

SCHC has the higher dividend yield at 3.43%, compared with 2.22% for VYM.

What is the main difference between VYM and SCHC?

VYM is categorized as Dividend, while SCHC is Foreign Small & Mid Cap Equities. VYM tracks FTSE High Dividend Yield Index, while SCHC tracks FTSE Custom Developed Small Cap ex-US Liquid Net of Tax (Lux). They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.04% for VYM and 0.11% for SCHC.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.36 vs 1.47), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.