SCHD vs VYM Stock Comparison: AI Score, Valuation, Performance and Upside
SCHD and VYM are both excellent low-cost dividend ETFs but serve different income objectives. SCHD is the dividend growth fund — a lower current yield but faster-growing dividend income over time due to its quality screen. VYM is the higher current yield fund with broader diversification but slower dividend growth. The best choice depends on whether an investor needs income now (VYM) or growing income over time (SCHD).
SCHD suits investors with a long time horizon who want growing dividend income compounding over time; VYM suits income-focused investors who need higher current yield today and prefer broader diversification.
VYM holds the edge across 3 of 5 key metrics in this comparison. VYM has delivered stronger 1-year price return (+25.29% vs +24.21% for SCHD).
- →want dividend income that grows significantly over time via companies with consistent payout growth
- →value multi-factor quality screening to avoid dividend traps and low-quality high-yielders
- →are building income portfolios for future retirement needs rather than immediate income
- →prefer a concentrated 100-stock portfolio of the highest-quality dividend growers
- →need higher current dividend yield for immediate income needs
- →prefer broader diversification across 400+ dividend-paying companies
- →value simplicity — a market-cap-weighted high-yield approach without factor screening
- →want a reliable high-yield core holding complemented by growth assets elsewhere
| Metric | SCHD | VYM |
|---|---|---|
| ETF score | 81.0 | 90.0 |
| Latest close | $31.86 | $158.21 |
| 1M return | -0.75% | +2.10% |
| 6M return | +16.41% | +11.89% |
| 1Y return | +24.21% | +25.29% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | SCHD | VYM |
|---|---|---|
| 1Y ago | $12.91K (+29.1%) started 2025-06-18 | $12.93K (+29.3%) started 2025-06-18 |
| 5Y ago | $18.74K (+87.4%) started 2021-06-18 | $21.17K (+111.7%) started 2021-06-18 |
| 10Y ago | $48.13K (+381.3%) started 2016-06-20 | $43.87K (+338.7%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | SCHD | VYM |
|---|---|---|
| Expense ratio | 0.06% | 0.04% |
| Total assets (AUM) | $94.95B | $96.06B |
| Dividend yield | 3.25% | 2.21% |
| Trailing P/E | 18.78 | 20.83 |
| Beta | 0.71 | 0.75 |
| 52-week change | 24.21% | 25.29% |
| Metric | SCHD | VYM |
|---|---|---|
| 1Y return | +24.21% | +25.29% |
| 6M return | +16.41% | +11.89% |
| 1M return | -0.75% | +2.10% |
| 1Y Sharpe ratio | 1.62 | 1.80 |
| Beta | 0.71 | 0.75 |
| Dividend yield | 3.25% | 2.21% |
| 5Y CAGR | +9.07% | +12.42% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | SCHD | VYM |
|---|---|---|---|
| 1Y | Growth | +24.21% | +25.29% |
| CAGR | +24.23% | +25.31% | |
| Sharpe ratio | 1.62 | 1.80 | |
| Max drawdown | 4.61% | 6.69% | |
| Max daily drop | 1.84% | 2.03% | |
| Max wkly drop | 3.44% | 2.88% | |
| 5Y | Growth | +54.34% | +79.57% |
| CAGR | +9.07% | +12.42% | |
| Sharpe ratio | 0.37 | 0.59 | |
| Max drawdown | 16.84% | 15.84% | |
| Max daily drop | 5.42% | 5.70% | |
| Max wkly drop | 12.74% | 10.80% | |
| 10Y | Growth | +224.07% | +204.56% |
| CAGR | +12.49% | +11.79% | |
| Sharpe ratio | 0.52 | 0.49 | |
| Max drawdown | 33.37% | 35.21% | |
| Max daily drop | 9.95% | 10.06% | |
| Max wkly drop | 18.00% | 19.13% |
| Category | SCHD | VYM |
|---|---|---|
| Fund name | Schwab U.S. Dividend Equity ETF | Vanguard High Dividend Yield Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratio | 0.06% | 0.04% |
| Total assets (AUM) | $94.95B | $96.06B |
| Dividend yield | 3.25% | 2.21% |
- →Multi-factor quality screening avoids dividend traps — companies with unsustainable payouts
- →Dividend growth rate of 11-13% annually has historically outpaced VYM's dividend growth
- →0.06% expense ratio is extremely cost-efficient for an actively screened dividend fund
- →Broader diversification with 400+ holdings versus SCHD's 100 — lower concentration risk
- →Higher starting dividend yield for investors who need current income immediately
- →0.06% expense ratio matches SCHD for equal cost efficiency
- →Quality screening excludes some high-yielding sectors (REITs, utilities) reducing current yield
- →Concentrated in 100 stocks versus VYM's broader 400+ holdings
- →Value-oriented screens may underperform in momentum-driven growth markets
- →Lower dividend growth rate than SCHD — more of a 'high yield now' than 'growing yield later' fund
- →Excludes REITs which some income investors specifically want
- →Less quality-screened — may include more companies with stagnant dividends that yield looks attractive
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