"SCHD tracks the Dow Jones U.S. Dividend 100 Index, a quality-weighted screen that demands cash flow strength, return on equity, and a 10-year dividend record. The result is concentrated. Bristol-Myers Squibb sits at 4.26% of the fund, followed by Merck at 4.14% and ConocoPhillips at 4.10%. Healthcare names BMY, MRK, and ABBV anchor three of the top 10 slots."
"VYM casts a wider net. The fund tracks the FTSE High Dividend Yield Index, which sweeps in roughly 400 to 500 above-average yielders without strict quality gates. That breadth softens single-stock risk and tilts the portfolio toward financials and industrials that SCHD's screen often filters out."
"Performance has split sharply. VYM has returned 67.14% over five years, well ahead of SCHD's 46.06%. Year to date: SCHD up 15.95% versus VYM up 8.7%. Over a decade, the leader flips: SCHD's 229.46% beats VYM's 204.10%. The quality screen wins long; the wider basket has won lately."
SCHD tracks the Dow Jones U.S. Dividend 100 Index using a quality-weighted screen that requires cash flow strength, return on equity, and a 10-year dividend record, resulting in concentrated holdings dominated by healthcare names like Bristol-Myers Squibb, Merck, and AbbVie. VYM tracks the FTSE High Dividend Yield Index, selecting 400-500 above-average yielders without strict quality requirements, tilting toward financials and industrials. SCHD distributes smaller per-share amounts ($0.2569 in March 2026) while VYM pays larger dividends ($0.8617 in March 2026). Performance diverges significantly: VYM returned 67.14% over five years versus SCHD's 46.06%, but SCHD leads over a decade with 229.46% versus VYM's 204.10%, suggesting quality screens outperform long-term while broader baskets excel recently.
Read at 24/7 Wall St.
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