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.
SCHD - Volatility Comparison. The current volatility for Vanguard High Dividend Yield ETF (VYM) is 2.42%, while Schwab US Dividend Equity ETF (SCHD) has a volatility of 2.61%. This indicates that VYM experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure.
VIG handily beats SCHD for 1-year performance. This is not a surprise, as stocks with a history of increasing dividends tend to be stable performers, which was a bonus for most of 2023. Returns for VIG and SCHD are similar in the long term with SCHD slightly edging out VIG for 10-year performance.
Its ultra-cheap 0.06% expense ratio was one of the lowest you'll find and its $53 billion asset base ensures that it's highly liquid and tradeable. VYM currently ranks #2 on my quantitatively-driven list of the best dividend ETFs.
Schwab U.S. Dividend Equity ETF SCHD stands out for its sensible, transparent, and risk-conscious approach that should continue to generate better long-term risk-adjusted returns than the Russell 1000 Value Index.
Based on 101 Wall Street analysts offering 12 month price targets to SCHD holdings in the last 3 months. The average price target is $86.65 with a high forecast of $99.79 and a low forecast of $72.10. The average price target represents a 8.20% change from the last price of $80.08.
SCHD's long-term track record of double-digit annualized returns over many years also inspires confidence that this is still a good place to be in the long term. Lastly, SCHD's expense ratio of just 0.06% is extremely favorable for investors, making this a compelling ETF to own in 2024 and beyond.
JEPI has consistently had a dividend yield of 7% or higher, whereas SCHD has never had a dividend higher than 4%. Overall, SCHD is a better option if you are looking for a passively managed ETF with a low expense ratio and consistent performance over the last ten years.
The main reason VYM has offered investors only minimal income since the fund's inception is because this ETF has consistently been overweight the technology and industrial sectors, both industries that usually payout below-average dividends and income.
VYM has a conensus rating of Moderate Buy which is based on 344 buy ratings, 189 hold ratings and 25 sell ratings. What is VYM's price target? The average price target for VYM is $131.21. This is based on 558 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
The better Vanguard ETF for their needs is likely VYM, which delivers a higher 2.9% 30-day SEC yield by targeting the FTSE High Dividend Yield Index. It also charges the same expense ratio as VIG does, at 0.06%.
For shareholders of the Schwab U.S. Dividend Equity ETF (SCHD) over the past several years, the past year and a half has been a rough ride. In 2023, its 4.6% return landed it in the 89th percentile in Morningstar's Large Value category. Its 6% year-to-date return falls in the 91st percentile.
Investors investing in taxable accounts argue that SCHD's dividends aren't taxed as harshly as the interest income from a Treasury. That is true, but a favorably taxed unrealized loss of over 2% does not compare well with a taxed gain over 4%.
Schwab US Dividend Equity ETF (SCHD): Historical Returns
In the last 10 Years, the Schwab US Dividend Equity ETF (SCHD) ETF obtained a 10.91% compound annual return, with a 14.61% standard deviation. Discover new asset allocations in USD and EUR, in addition to the lazy portfolios on the website.
Is VYM a Buy, Sell or Hold? VYM has a conensus rating of Moderate Buy which is based on 344 buy ratings, 189 hold ratings and 25 sell ratings. What is VYM's price target? The average price target for VYM is $131.21.
VYM - Performance Comparison. In the year-to-date period, SPHD achieves a 8.36% return, which is significantly lower than VYM's 9.18% return. Over the past 10 years, SPHD has underperformed VYM with an annualized return of 8.39%, while VYM has yielded a comparatively higher 9.95% annualized return.
VYM has a dividend yield of 2.86% and paid $3.42 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 15, 2024.
The VYM twin fund is called the Vanguard High Dividend Yield Index Fund Admiral Shares (VHYAX). Investors with an account at Vanguard who prefer mutual funds can consider this fund as an alternative to VYM. The VIG twin fund is called the Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX).
Introduction: My name is Van Hayes, I am a thankful, friendly, smiling, calm, powerful, fine, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.
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