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 | 1.95% | -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 Dev | 12.46% | 13.09% |
| Max Drawdown | -56.98% | -33.37% |
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.
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.
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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.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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
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 ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
VYM Vanguard High Dividend Yield ETF | -0.13 | ||||
SCHD Schwab US Dividend Equity ETF | -0.30 |
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
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.