VYM vs. SCHD

Last updated Jul 21, 2026

VYM (Vanguard High Dividend Yield ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both Dividend funds - VYM tracks the FTSE High Dividend Yield Index while SCHD tracks the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, VYM returned 11.36%/yr vs 12.32%/yr for SCHD. Their correlation of 0.95 suggests significant overlap in exposure. VYM charges 0.04%/yr vs 0.06%/yr for SCHD.

Performance

VYM vs. SCHD - Performance Comparison

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

Returns By Period

In the year-to-date period, VYM achieves a 12.42% return, which is significantly lower than SCHD's 21.36% return. Over the past 10 years, VYM has underperformed SCHD with an annualized return of 11.36%, while SCHD has yielded a comparatively higher 12.32% annualized return.

VYM

• 1D: -0.47%
• 1M: 0.76%
• 6M: 8.38%
• YTD: 12.42%
• 1Y: 21.30%
• 3Y*: 16.51%
• 5Y*: 11.99%
• 10Y*: 11.36%
• ALL TIME*: 9.30%

SCHD

• 1D: -0.49%
• 1M: 3.61%
• 6M: 15.19%
• YTD: 21.36%
• 1Y: 25.66%
• 3Y*: 13.54%
• 5Y*: 9.15%
• 10Y*: 12.32%
• ALL TIME*: 13.25%

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

VYM vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	12.42%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
SCHD Schwab U.S. Dividend Equity ETF	21.36%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between VYM and SCHD is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.95

Over the past year, the correlation between VYM and SCHD has dropped to 0.74 - well below their long-term average of 0.95, suggesting their price drivers have been diverging.

VYM vs. SCHD - Sectors Allocation Comparison

Sectors	VYM	SCHD
Financial Services	21.0%	9.9%
Technology	17.8%	12.7%
Healthcare	13.2%	20.8%
Industrials	12.6%	7.8%
Energy	8.6%	14.1%
Consumer Defensive	8.1%	20.6%
Consumer Cyclical	6.8%	7.7%
Utilities	5.7%	0.1%
Basic Materials	3.3%	1.2%
Communication Services	3.0%	6.2%
Real Estate	0.0%	-

Return for Risk

VYM vs. SCHD — Risk / Return Rank

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

VYM

VYM Risk / Return Rank: 84
VYM Sharpe Ratio Rank: 86
VYM Sortino Ratio Rank: 87
VYM Omega Ratio Rank: 84
VYM Calmar Ratio Rank: 82
VYM Martin Ratio Rank: 82

SCHD

SCHD Risk / Return Rank: 91
SCHD Sharpe Ratio Rank: 90
SCHD Sortino Ratio Rank: 93
SCHD Omega Ratio Rank: 88
SCHD Calmar Ratio Rank: 95
SCHD Martin Ratio Rank: 87

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. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and Schwab U.S. 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VYM	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	2.10	2.34	-0.24
Sortino ratio: Return per unit of downside risk	3.04	3.63	-0.59
Omega ratio: Gain probability vs. loss probability	1.38	1.42	-0.03
Calmar ratio: Return relative to maximum drawdown	3.20	5.59	-2.39
Martin ratio: Return relative to average drawdown	11.87	13.64	-1.77

VYM vs. SCHD - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.10, which is comparable to the SCHD Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of VYM and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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.

Drawdown Indicators

	VYM	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-33.37%	-23.61%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-4.61%	-2.08%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-16.13%	+1.67%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-16.85%	+1.01%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-33.37%	-1.84%
Current Drawdown Current decline from peak	-1.02%	-0.88%	-0.14%
Average Drawdown Average peak-to-trough decline	-7.15%	-3.30%	-3.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.80%	1.89%	-0.09%

Volatility

VYM vs. SCHD - Volatility Comparison

The current volatility for Vanguard High Dividend Yield ETF (VYM) is 1.78%, while Schwab U.S. Dividend Equity ETF (SCHD) has a volatility of 3.63%. 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.

Volatility by Period

	VYM	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.78%	3.63%	-1.85%
Volatility (6M) Calculated over the trailing 6-month period	7.49%	7.97%	-0.48%
Volatility (1Y) Calculated over the trailing 1-year period	10.22%	11.05%	-0.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.87%	14.37%	-0.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.29%	16.71%	-0.42%

VYM vs. SCHD - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than SCHD's 0.06% 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. SCHD - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.28%, less than SCHD's 3.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.20%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
VYM Vanguard High Dividend Yield ETF	2.28%	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 SCHD in my portfolio?

VYM and SCHD have a correlation of 0.74, 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 SCHD?

SCHD has higher volatility (3.63%) compared to VYM (1.78%). In terms of maximum drawdown, VYM dropped -56.98% vs SCHD's -33.37%.

Which ETF is better, VYM or SCHD?

On 10-year performance, SCHD leads with 12.32% vs 11.36% for VYM. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 1.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VYM or SCHD?

Over the 10-year period, SCHD has performed better with a 12.32% return vs 11.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VYM or SCHD?

VYM is cheaper with a 0.04% expense ratio, compared with 0.06% for SCHD.

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

SCHD has the higher dividend yield at 3.20%, compared with 2.28% for VYM.

What is the main difference between VYM and SCHD?

VYM tracks FTSE High Dividend Yield Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.04% for VYM and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.34 vs 2.10), 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.