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VYM vs. SCHD

Last updated Dec 2, 2023

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


VYMSCHD
YTD Return1.95%-0.57%
1Y Return-1.52%-4.12%
3Y Return (Ann)9.48%8.33%
5Y Return (Ann)7.99%10.96%
10Y Return (Ann)9.20%10.76%
Sharpe Ratio-0.13-0.30
Daily Std Dev12.46%13.09%
Max Drawdown-56.98%-33.37%

Correlation

0.97
-1.001.00

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.

VYM vs. SCHD - Performance Comparison

In the year-to-date period, VYM achieves a 1.95% return, which is significantly higher than SCHD's -0.57% return. Over the past 10 years, VYM has underperformed SCHD with an annualized return of 9.20%, while SCHD has yielded a comparatively higher 10.76% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.


-4.00%-2.00%0.00%2.00%4.00%6.00%8.00%JulyAugustSeptemberOctoberNovemberDecember
5.28%
4.56%
VYM
SCHD

Compare stocks, funds, or ETFs


Vanguard High Dividend Yield ETF

Schwab US Dividend Equity ETF

VYM vs. SCHD - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 3.11%, less than SCHD's 3.58% yield.


TTM20222021202020192018201720162015201420132012
VYM
Vanguard High Dividend Yield ETF
3.11%3.01%2.76%3.18%3.03%3.40%2.80%2.91%3.22%2.78%2.81%3.23%
SCHD
Schwab US Dividend Equity ETF
3.58%3.39%2.78%3.16%2.98%3.06%2.63%2.89%2.97%2.63%2.47%2.86%

VYM vs. SCHD - Expense Ratio Comparison

Both VYM and SCHD have an expense ratio of 0.06%.

0.06%
0.00%2.15%

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.


Sharpe ratioSortino ratioOmega ratioCalmar ratioUlcer Index
VYM
Vanguard High Dividend Yield ETF
-0.13
SCHD
Schwab US Dividend Equity ETF
-0.30

VYM vs. SCHD - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is -0.13, which is higher than the SCHD Sharpe Ratio of -0.30. The chart below compares the 12-month rolling Sharpe Ratio of VYM and SCHD.


Rolling 12-month Sharpe Ratio-0.40-0.200.000.200.400.600.80JulyAugustSeptemberOctoberNovemberDecember
-0.13
-0.30
VYM
SCHD

VYM vs. SCHD - Drawdown Comparison

The maximum VYM drawdown for the period was -9.94%, roughly equal to the maximum SCHD drawdown of -13.22%. The drawdown chart below compares losses from any high point along the way for VYM and SCHD


-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%-2.00%0.00%JulyAugustSeptemberOctoberNovemberDecember
-1.61%
-5.11%
VYM
SCHD

VYM vs. SCHD - Volatility Comparison

The current volatility for Vanguard High Dividend Yield ETF (VYM) is 3.15%, while Schwab US Dividend Equity ETF (SCHD) has a volatility of 3.51%. 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.


2.50%3.00%3.50%4.00%4.50%5.00%JulyAugustSeptemberOctoberNovemberDecember
3.15%
3.51%
VYM
SCHD