iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Short answer: SCHD is ahead on the latest issuer-reported 2026 figures, but the comparison is not synchronized. Schwab Asset Management reports a 21.46% NAV gain through September 30, 2026, while Vanguard reports an 11.82% NAV gain through September 23, 2026 for VYM. That seven-day gap means the apparent lead is a dated snapshot, not proof that SCHD will remain the winner.
The funds also make different bets. SCHD owns 102 stocks selected for dividend quality and financial strength; VYM owns 603 stocks from a broad high-dividend index. SCHD offers the higher displayed income in the cited profiles, while VYM charges less. Your choice should therefore depend on total return over matched dates, income needs, concentration, fees, taxes and tolerance for factor-driven underperformance.
Is SCHD really beating VYM this year?
Yes, on the latest numbers each issuer publishes, SCHD is ahead. Schwab Asset Management lists a 21.46% year-to-date NAV return through September 30, 2026. Vanguard’s VYM profile lists an 11.82% year-to-date NAV return through September 23, 2026.
Those figures cannot be treated as a precise same-day spread because the end dates differ by seven days. A market move during that interval could make the gap look larger or smaller than it would on a common date. Before declaring a durable advantage, compare NAV total-return figures for identical start and end dates, using the same treatment of distributions and the same currency and share class assumptions.
The figures are also NAV returns, not a promise about an individual investor’s account. Brokerage results can differ because of purchase date, bid-ask spreads, commissions, taxes and whether distributions were reinvested.
How SCHD and VYM are built
SCHD: a concentrated dividend-quality screen
SCHD is designed to track the Dow Jones U.S. Dividend 100 Index. Schwab describes that benchmark as a 100-component, modified-capitalization-weighted index of high-dividend U.S. companies with consistent dividend records, selected for fundamental strength. The index excludes real estate investment trusts (REITs). Schwab’s stated objective is: The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100™ Index.
Rank #2
The fund profile dated October 8, 2026, lists 102 holdings. That is close to the index’s 100 constituents, so a small number of companies and industries can have a meaningful effect on results.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →VYM: broad exposure to high-dividend stocks
VYM seeks to track the FTSE High Dividend Yield Index, which measures the investment return of common stocks characterized by high dividend yields. Vanguard’s profile dated August 31, 2026, lists 603 holdings.
That breadth reduces the impact of any single company relative to SCHD. VYM’s broader, market-cap-oriented exposure can also participate more fully when leadership expands beyond the quality and value characteristics emphasized by SCHD.
| Characteristic | SCHD | VYM |
|---|---|---|
| Index | Dow Jones U.S. Dividend 100 Index | FTSE High Dividend Yield Index |
| Holdings | 102 (Schwab profile dated 2026-10-08) | 603 (Vanguard profile dated 2026-08-31) |
| Construction emphasis | Dividend consistency and fundamental strength; modified-capitalization weighting | Broad portfolio of common stocks selected for high dividend yields |
| REITs | Excluded from the tracked index | Not stated in the cited profile |
Which is better for dividend income, SCHD or VYM?
SCHD shows the higher income figures in the cited issuer profiles, but the measures are not identical. Schwab reports both a 3.00% trailing distribution yield and a 3.37% 30-day SEC yield. Vanguard displays a 2.29% dividend yield for VYM, dated August 31, 2026.
| Income measure | SCHD | VYM |
|---|---|---|
| Displayed yield | 3.00% trailing distribution yield (Schwab, 2026 profile) | 2.29% dividend yield (Vanguard, 2026-08-31 profile) |
| SEC yield | 3.37% 30-day SEC yield (Schwab, 2026 profile) | Not stated in the cited profile |
A trailing distribution yield looks backward at payments already made. A 30-day SEC yield is a standardized recent-income measure. Because the definitions and dates differ, do not subtract one percentage from the other and call the result a guaranteed yield advantage. Distribution amounts can change, and a higher yield does not by itself indicate higher total return or safer income.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallIs VYM’s lower fee worth the lower yield?
VYM has the fee advantage. Vanguard’s 2026 product profile lists a 0.04% expense ratio, compared with SCHD’s 0.060% expense ratio in Schwab’s 2026 profile.
| Fund | Expense ratio | Annual cost on $10,000 before performance differences |
|---|---|---|
| SCHD | 0.060% | $6.00 |
| VYM | 0.04% | $4.00 |
The arithmetic illustrates the scale: the stated fee difference is about $2 per year per $10,000 invested, before compounding. A yield difference, sector tilt or performance gap can matter more than that fee, but costs compound over long holding periods. Evaluate the fee alongside portfolio behavior rather than treating it as the deciding factor by itself.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Will SCHD’s lead fade?
That is a portfolio-construction inference, not a certainty. SCHD’s quality and value screens can be powerful when profitable, financially strong dividend companies lead the market. The same screens can lag when growth-oriented or otherwise excluded sectors drive returns. Its smaller holding count can amplify both outperformance and drawdowns.
VYM’s 603-stock breadth and market-cap weighting give it more exposure to companies and sectors that SCHD may underweight or omit. If market leadership broadens, VYM can close the gap even if its current displayed yield remains lower. The seven-day mismatch in the reported YTD dates is a separate measurement risk: part of the apparent spread may reflect different end points rather than portfolio skill.
Recommended Free Tools
How to decide between SCHD and VYM
- Match the measurement period. Use issuer NAV total returns ending on the same date before comparing winners.
- Define the job of the holding. Decide whether you need current distributions, long-term total return, or a combination.
- Check concentration. SCHD’s 102 holdings can produce larger company and sector effects; VYM’s 603 holdings spread those effects more broadly.
- Review factor exposure. SCHD’s quality/value methodology may behave differently from VYM’s broad high-dividend approach as market leadership changes.
- Account for fees. VYM’s 0.04% expense ratio is lower than SCHD’s 0.060%, although the dollar difference is modest for smaller balances.
- Consider taxes and account type. In a taxable account, ETF distributions and realized gains can create current tax consequences. Tax-advantaged accounts handle timing differently. Check each fund’s current tax-character documents and your local rules before acting.
- Set a review rule. Reassess allocation when your income requirement, risk tolerance, tax situation or diversification needs change—not simply after one year’s return.
What the 2026 snapshot can—and cannot—tell you
The available figures establish that SCHD led VYM on the latest reported 2026 NAV snapshots, with an important seven-day date mismatch. They do not establish a permanent performance ranking, a guaranteed yield premium, or which fund will have the better future risk-adjusted return. The meaningful comparison is a matched-date, after-tax evaluation of total return, income reliability, diversification and costs.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
