Someone asks:
SCHD or VYM and reasons on which to pick? I currently have 100 shares of VYM. Other similar options are appreciated as well. I am also considering just doing all VOO.
SCHD vs VYM: Overview
| Funds | Schwab U.S. Dividend Equity ETF™ | Vanguard High Dividend Yield Index Fund ETF Shares |
|---|---|---|
| Price | 76.64 | 109.16 |
| 3-year total return | +18.03% | +12.13% |
| 3-year standard deviation | 18.19% | 17.14% |
| Net expense ratio | 0.06% | 0.06% |
| Total net assets | 34.11bn USD | 43.13bn USD |
| Morningstar category | Large Value | Large Value |
Which is Better, SCHD or VYM?
Community Answers:
Richard T:
I have both VYM and SCHD. I like them both. Currently, I slightly favor VYM, as I’m long with it and well into double-digit gains, whereas SCHD has been pretty flat since I started a position there.
Bill H:
All of these have underperformed SPY over the past 10 years, with dividends reinvested. Why not just go with SPY or VOO?
Matson A:
SCHD and SPHD both are great for ETFs that are growing their dividends, and the dividend growth is sustainable long term with the strategies that they use.
Mike R:
It just comes down to your investment goals and allocation preferences. SCHD and VYM can fulfill similar needs, but they do so differently. Both can offer a fine diversified complement to VOO or VTI if that’s what aligns with your investment goals. Up to you, really.
Both give you diversified, large-cap, yield-focused exposure. VYM is more of a blanket high yield approach; SCHD vets more for quality.
Historically, this tends to give VYM lower volatility and higher yield, while SCHD delivers a better total return.
Nicholas S:
Why not all 3? 1/3 each, VYM/SCHD/VOO? Follow different indexes and good diversification of companies. Also, you can never be in fear of missing out. Buy to keep that ratio and think you should have a solid portfolio.
Justin W:
2 yrs ago, VYM was leading. Now it’s SCHD. I pick a few top performers per category. Yes, there’s overlap, but I always like the stuff they overlap with and am happy to own more of it.
You should also own VOO. And ONEQ and IWM. Maybe even DIA and MDY. The popular indexes are a no-brainer everyone should own and center their equity portfolio. Add some growth and dividend funds, and you’ve got a solid equity portfolio.
Gregory B:
Neither! I’d pick VOO. VOO has double SPHD’s returns with dividends reinvested for both. Heck, VOO’s price return alone is almost double SPHDs. VYM is not bad, probably still not as good as VOO.
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