VYM vs. SCHD
Compare and contrast key facts about Vanguard High Dividend Yield ETF (VYM) and Schwab US Dividend Equity ETF (SCHD).
VYM and SCHD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. 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. Both VYM and SCHD 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: VYM or SCHD.
Key characteristics
| VYM | SCHD | |
|---|---|---|
| YTD Return | 4.92% | 2.29% |
| 1Y Return | 15.64% | 13.67% |
| 3Y Return (Ann) | 6.84% | 4.36% |
| 5Y Return (Ann) | 9.22% | 11.21% |
| 10Y Return (Ann) | 9.52% | 11.00% |
| Sharpe Ratio | 1.36 | 1.11 |
| Daily Std Dev | 10.70% | 11.38% |
| Max Drawdown | -56.98% | -33.37% |
| Current Drawdown | -3.74% | -4.17% |
Correlation
The correlation between VYM and SCHD 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
VYM vs. SCHD - Performance Comparison
In the year-to-date period, VYM achieves a 4.92% return, which is significantly higher than SCHD's 2.29% return. Over the past 10 years, VYM has underperformed SCHD with an annualized return of 9.52%, while SCHD has yielded a comparatively higher 11.00% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VYM vs. SCHD - Expense Ratio Comparison
Both VYM and SCHD have an expense ratio of 0.06%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
VYM vs. SCHD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and Schwab US Dividend Equity ETF (SCHD). 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.
Dividends
VYM vs. SCHD - Dividend Comparison
VYM's dividend yield for the trailing twelve months is around 2.93%, less than SCHD's 3.46% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VYM Vanguard High Dividend Yield ETF | 2.93% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% | 2.78% | 2.81% |
SCHD Schwab US Dividend Equity ETF | 3.46% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% | 2.63% | 2.47% |
Drawdowns
VYM vs. SCHD - Drawdown Comparison
The maximum VYM drawdown since its inception was -56.98%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VYM and SCHD. For additional features, visit the drawdowns tool.
Volatility
VYM vs. SCHD - Volatility Comparison
The current volatility for Vanguard High Dividend Yield ETF (VYM) is 3.21%, while Schwab US Dividend Equity ETF (SCHD) has a volatility of 3.59%. This indicates that VYM experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.