While tech stocks and growth funds are getting hammered by war fears and high oil prices, dividend ETFs have become the ultimate market shield, with two names leading the space: Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM). While both focus on income, the data shows they offer different strengths.
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Using TipRanks’ ETF Comparison tool, we compared SCHD and VYM across yield, performance, and upside potential.
SCHD Leads on Yield and Consistency
If income is the priority, SCHD stands out. It offers a 3.46% dividend yield, compared to 2.41% for VYM, giving investors a higher payout relative to price. That difference can meaningfully improve regular income, especially for those relying on dividends.
Looking at recent payouts, SCHD’s quarterly dividends have been relatively stable, mostly in the $0.25–$0.28 range. VYM, on the other hand, pays higher amounts per distribution—often between $0.85 and $1.00—but with more variation from quarter to quarter.
This highlights a key difference. SCHD focuses on consistency and yield, while VYM offers larger but less predictable payouts.
SCHD also carries a slightly higher Smart Score of 7 on TipRanks, compared to 6 for VYM, pointing to a marginally stronger overall profile.
VYM Leads on Returns, Upside, and Costs
On the contrary, VYM has delivered stronger returns. Over the past year, VYM ETF is up 13.06%, ahead of SCHD’s 9.36%.
Looking ahead, analyst targets suggest slightly more upside for VYM, with about 14.7% potential upside compared to 13.1% for SCHD. It also comes with a lower expense ratio of 0.04%, versus 0.06% for SCHD.
Taken together, VYM leans more toward total return, combining moderate income with stronger price gains.
The Bottom Line
SCHD is better suited for investors focused on steady income, offering a higher yield and more consistent payouts, along with a slightly stronger fundamentals score.
VYM, on the other hand, is a better fit for those looking for a balance of income and growth, with stronger recent performance, lower fees, and slightly higher upside potential.