---
title: "Dividend ETF Comparison: VYM vs SCHD"
description: "Comparison of major dividend ETFs: SCHD (0.06%), VYM (0.06%), DVY (0.38%), VIG, HDV, and DGRO. Covers yield, 10-year returns, strategy, and number of holdings."
canonical: https://www.getswoopr.com/tables/etf/dividend-etf-comparison/
source: "Swoopr Investment: https://www.getswoopr.com"
---

## Direct Answer



> Major dividend ETFs differ in yield, growth vs. income focus, and sector concentration. Schwab U.S. Dividend Equity ETF (SCHD, 0.06%) is the highest-returning major dividend ETF of the past decade. Vanguard High Dividend Yield ETF (VYM, 0.06%) offers broad high-yield exposure. iShares Select Dividend ETF (DVY, 0.38%) has the highest yield but significant sector concentration in utilities and financials.








# Dividend ETF Comparison



## Dividend ETF Comparison



| Ticker | Name | Expense Ratio | Yield (approx) | 10-Year Annualized Return | Holdings | Key Criterion |
| --- | --- | --- | --- | --- | --- | --- |
| VYM | Vanguard High Dividend Yield | 0.06% | ~3.0% | ~12.5% | ~450 | Forecasted dividend yield above median |
| SCHD | Schwab US Dividend Equity | 0.06% | ~3.5% | ~13.5% | ~100 | 10yr consecutive dividends + DGR quality |
| DVY | iShares Select Dividend | 0.38% | ~4.5% | ~10.5% | ~100 | Highest yielding + dividend stability |
| HDV | iShares Core High Dividend | 0.08% | ~4.0% | ~11.5% | ~75 | Quality/sustainability screen |
| VIG | Vanguard Dividend Appreciation | 0.06% | ~1.8% | ~13.0% | ~300 | 10+ consecutive years dividend growth |
| DGRO | iShares Core Dividend Growth | 0.08% | ~2.3% | ~13.5% | ~400 | Consecutive + sustainable dividend growth |



Source: [Vanguard: VYM ETF](https://investor.vanguard.com/etf/profile/VYM). Last verified: September 2026.



## Frequently asked questions



Is SCHD better than VYM?

SCHD has outperformed VYM significantly over the past decade (~13.5% vs ~12.5% annualized), primarily because its quality screens (10-year dividend history, financial strength ratio, dividend growth rate) overweight stronger companies that also happen to grow faster. VYM is simpler (forecasted yield screen only) and more diversified (~450 holdings vs. ~100). SCHD's outperformance may partly reflect the past decade's favorable environment for quality factors. For investors who prioritize yield and broad exposure, VYM is defensible. For investors who want better quality and are willing to accept more concentration, SCHD has a strong historical case.



Should dividend ETFs replace bond ETFs in income portfolios?

Dividend ETFs and bond ETFs serve different roles. Dividend ETFs are equity instruments with equity-level risk (they fell 30-40% in 2020 and 2022). Bond ETFs are debt instruments with lower risk and different return profile. Replacing bonds with dividend stocks for yield increases portfolio risk significantly. However, for investors with long time horizons who do not need stable principal, dividend ETFs offer income with equity return potential, while bond income is more stable. A portfolio that needs to fund withdrawals within 5 years should not substitute dividend equities for bonds.



What is dividend growth investing?

Dividend growth investing prioritizes companies with consistent records of increasing dividends over time (VIG targets 10+ consecutive years of increases). The logic: sustained dividend growth signals strong underlying cash flow generation and management discipline. Companies that consistently grow dividends (Dividend Aristocrats: 25+ consecutive years; Dividend Kings: 50+ consecutive years) tend to be high-quality businesses. VIG's long-term return has been competitive with the S&P 500 with lower volatility, primarily because dividend growth companies tend to be more mature and stable than average S&P 500 members.



## Worked Example: Income, Growth and Cost on $10,000

Take $10,000 placed in each of two funds in the table. At DVY's approximate 4.5% yield the first year's dividends are about $450; at VIG's approximate 1.8% they are about $180, $270 less. Over the past decade, though, the table's annualized total returns ran the other way: $10,000 compounding at VIG's approximate 13.0% for ten years becomes about $33,946, against about $27,141 at DVY's 10.5%. The higher-yielding fund paid more cash each year and finished about $6,805 behind on total value, because the yield is one component of return and price growth the other.

Expense ratios compound the same way. On a fund earning 12% a year before costs, a 0.06% expense ratio costs about $166 of ending value on $10,000 over ten years; a 0.38% ratio costs about $1,038, $872 more. That gap is smaller than the return gap above, which is the right order to read the table in: strategy and holdings first, cost second, headline yield last. All figures are the table's approximate values applied to a hypothetical balance; past returns do not set future ones.





## Cite This Page



If you reference this table in your own work, use the following citation format and add the date you accessed it:



> Swoopr Editorial Team. (2026). *Dividend ETF Comparison*. Swoopr Investment. [https://www.getswoopr.com/tables/etf/dividend-etf-comparison/](https://www.getswoopr.com/tables/etf/dividend-etf-comparison/)



Check the figures against the primary sources listed under References before you rely on or republish them; the series they come from are revised.







## References



- [Vanguard: VYM ETF](https://investor.vanguard.com/etf/profile/VYM)







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