Schwab U.S. Dividend Equity ETF leads peers with a 3.3% yield and $96 billion in assets, surpassing benchmarks this year.
The Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM) have each amassed roughly $96 billion in net assets, but SCHD’s 3.3% dividend yield exceeds VYM’s 2.3%. Both funds have outperformed the S&P 500 and Nasdaq-100 in 2024, driven by strong demand for passive income strategies.
SCHD focuses on current dividend yield, with 41.1% of its portfolio in healthcare and consumer staples. VYM, meanwhile, balances yield and growth, weighting industrials, materials, and financials more heavily. Both ETFs maintain low expense ratios of 0.06% and 0.04%, respectively.
Unlike covered-call ETFs, neither fund caps upside potential, offering exposure to a diversified basket of dividend-paying stocks. The divergence in sector allocations highlights their distinct investment approaches.