VYMI vs. SCHD: Comparing Two Dividend ETFs for Income

Overview of VYMI and SCHD

Dividend ETFs are popular among income-focused investors. Two notable options are the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard International High Dividend Yield ETF (VYMI). Both aim to provide regular income but employ different strategies. SCHD focuses on high-quality U.S. companies with a strong dividend track record, while VYMI targets higher-yielding international stocks.

Vanguard International High Dividend Yield ETF (VYMI)

VYMI offers exposure to high-dividend-paying stocks outside the U.S., providing geographic diversification. The fund has an expense ratio of 0.07% and pays a quarterly dividend of $1.257 per share, reflecting a 3.58% yield. As of the latest data, VYMI holds 1,562 stocks with total assets of $20.18 billion. Its top holdings include HSBC Holdings, Roche Holdings, and Novartis.

Schwab U.S. Dividend Equity ETF (SCHD)

SCHD invests in U.S. companies with consistent dividend payments. It offers a dividend yield of 3.19% and pays a quarterly dividend of $0.253 per share. The fund owns 101 stocks and manages $100.80 billion in assets. Its top holdings are Abbott, UnitedHealth, and Merck & Company. SCHD has an expense ratio of 0.06%.

Key Differences

Yield: VYMI (3.58%) vs. SCHD (3.19%)
Number of holdings: VYMI (1,562) vs. SCHD (101)
Assets under management: VYMI ($20.18B) vs. SCHD ($100.80B)
Expense ratio: VYMI (0.07%) vs. SCHD (0.06%)
Geographic focus: VYMI (international) vs. SCHD (U.S.)

SCHD's dividend history shows a track record of consistent payments, while VYMI's dividend history reflects its international holdings.

What it means for income investors

SCHD offers a more concentrated portfolio of U.S. dividend growers with lower volatility, while VYMI provides higher yield and international diversification. The choice depends on an investor's preference for U.S. stability versus global income exposure.

Reporting based on: TipRanks. Figures verified against market data where available.