SCHD vs VYM vs VIG:
LAST UPDATED: April 22, 2023 | By Conrad Golly
As an investor, I’m always on the lookout for the best exchange-traded funds (ETFs) to add to my portfolio.
SCHD vs VYM vs VIG: Three popular dividend ETFs are Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield Index Fund ETF (VYM), while the Vanguard Dividend Appreciation Index Fund ETF (VIG) is known for its dividend growth strategy.
But which one is the better buy?
In this article, I’ll compare SCHD vs VYM vs VIG to help you make an informed decision.
First, let’s take a closer look at SCHD.
This ETF tracks the Dow Jones U.S. Dividend 100 Index, which includes 100 high-quality companies with a history of paying dividends.
SCHD has a low expense ratio of 0.06% and a dividend yield of 2.9%.
It also has a diversified portfolio, with its top holdings including Procter & Gamble, Johnson & Johnson, and PepsiCo.
On the other hand, VYM tracks the FTSE High Dividend Yield Index, which includes 400 companies with above-average dividend yields.
VYM has a slightly higher expense ratio of 0.06% and a higher dividend yield of 3.1%.
Its top holdings include Microsoft, Johnson & Johnson, and JPMorgan Chase.
While it has a larger portfolio than SCHD, it’s worth noting that it’s less diversified, with investments in only 100 companies.
What are SCHD vs VYM vs VIG?
When it comes to investing in the stock market, there are many options to choose from.
Three popular exchange-traded funds (ETFs) are SCHD, VYM, and VIG. Each of these ETFs has its own unique characteristics and investment strategies.
Schwab US Dividend Equity ETF: SCHD
SCHD, or Schwab U.S. Dividend Equity ETF, is an ETF that focuses on high-quality, large-cap companies with a track record of paying dividends.
SCHD seeks to provide investors with exposure to U.S. companies that have a history of paying dividends and have the potential for long-term growth.
The ETF has a low expense ratio of 0.06% and a dividend yield of 3.71%. SCHD has a total net asset value of $44.797B as of the latest data.
Vanguard High Dividend Yield ETF: VYM
VYM, or Vanguard High Dividend Yield Index Fund ETF, is an ETF that seeks to track the performance of the FTSE High Dividend Yield Index.
VYM invests in U.S. companies that have a history of paying dividends and have the potential for long-term growth.
The ETF has a low expense ratio of 0.06% and a dividend yield of 3.05%. VYM has a total net asset value of $38.61B as of the latest data.
Vanguard Dividend Appreciation Index Fund ETF: VIG
VIG, or Vanguard Dividend Appreciation Index Fund ETF, is an ETF that seeks to track the performance of the NASDAQ US Dividend Achievers Select Index.
VIG invests in U.S. companies that have a history of increasing their dividends over time.
The ETF has a low expense ratio of 0.06% and a dividend yield of 1.68%. VIG has a total net asset value of $80.1B as of the latest data.
Each of these ETFs has its own unique investment strategy and characteristics.
As an investor, it is important to understand these differences and choose the ETF that best aligns with your investment goals and risk tolerance.
Comparison of SCHD vs VYM vs VIG
SCHD vs VYM vs VIG: Performance Comparison
When it comes to performance, SCHD, VYM, and VIG have all shown strong returns over the years. However, there are some differences between them.
According to Finance Charts, as of the current date, SCHD has a last close price of $72.96, VIG has a last close price of $154.45, and VYM has a last close price of $105.92.
Over the past three years, SCHD has outperformed both VYM and VIG, with an annualized return of 12.02%.
VYM has had an annualized return of 10.97%, while VIG has had an annualized return of 10.76%.
Over the past five years, SCHD has also outperformed both VYM and VIG, with an annualized return of 13.47%.
VYM has had an annualized return of 11.99%, while VIG has had an annualized return of 11.71%.
Over the past ten years, SCHD has once again outperformed both VYM and VIG, with an annualized return of 14.11%.
VYM has had an annualized return of 12.84%, while VIG has had an annualized return of 12.48%.
SCHD vs VYM vs VIG: Expense Ratio Comparison
Expense ratios are an important factor to consider when choosing between ETFs. According to ETF Database, as of the current date, SCHD, VYM, and VIG all have very low expense ratios of 0.06%.
SCHD vs VYM vs VIG: Holdings Comparison
When it comes to holdings, there are some differences between SCHD, VYM, and VIG.
As of the current date, SCHD holds 101 stocks, VYM holds 436 stocks, and VIG holds 184 stocks.
SCHD focuses on high-quality U.S. stocks with a history of paying dividends, while VYM focuses on high-dividend-yielding U.S. stocks.
VIG, on the other hand, focuses on U.S. stocks with a history of increasing dividends.
When it comes to performance, expense ratios, and holdings, SCHD, VYM, and VIG all have their own strengths and weaknesses.
It’s important to consider your own investment goals and risk tolerance when choosing between them.
Pros and Cons of SCHD vs VYM vs VIG
Subsection 1: Pros of SCHD
I have found that SCHD is a great choice for investors who are looking for a low-cost, high-quality dividend ETF.
The fund is designed to track the performance of the Dow Jones U.S. Dividend 100 Index, which includes 100 high-quality, large-cap U.S. stocks that have a track record of paying consistent dividends.
This means that SCHD is a great option for investors who are looking for a reliable source of income from their investments.
Another advantage of SCHD is its low expense ratio, which is currently set at 0.06%.
This is significantly lower than the average expense ratio for dividend ETFs, which is around 0.35%. As a result, investors can save a lot of money on fees by investing in SCHD.
Subsection 2: Cons of SCHD
One potential downside of SCHD is that it is relatively narrow in scope.
The fund only includes 100 stocks, which means that investors may miss out on some opportunities in the broader market.
Additionally, SCHD is heavily weighted towards certain sectors, such as consumer goods and healthcare, which could be a concern for investors who are looking for more diversification.
Subsection 3: Pros of VYM
VYM is a great option for investors who are looking for a high-yield dividend ETF.
The fund is designed to track the performance of the FTSE High Dividend Yield Index, which includes 400 high-yield U.S. stocks.
This means that VYM is a great option for investors who are looking for a high level of income from their investments.
Another advantage of VYM is that it is relatively diversified. The fund includes stocks from a wide range of sectors, which means that investors can benefit from exposure to a variety of different industries.
Subsection 4: Cons of VYM
One potential downside of VYM is that it has a relatively high expense ratio, which is currently set at 0.06%. This is higher than the expense ratio for SCHD, which means that investors may end up paying more in fees over time.
Additionally, VYM is heavily weighted towards certain sectors, such as consumer goods and healthcare, which could be a concern for investors who are looking for more diversification.
Subsection 5: Pros of VIG
VIG is a great option for investors who are looking for a dividend growth ETF.
The fund is designed to track the performance of the NASDAQ U.S. Dividend Achievers Select Index, which includes U.S. stocks that have a track record of consistently increasing their dividends over time.
This means that VIG is a great option for investors who are looking for a reliable source of income that grows over time.
Another advantage of VIG is that it is relatively diversified. The fund includes stocks from a wide range of sectors, which means that investors can benefit from exposure to a variety of different industries.
Subsection 6: Cons of VIG
One potential downside of VIG is that it has a relatively low dividend yield, which is currently set at 1.9%.
This is lower than the yields for both SCHD and VYM, which means that investors may not receive as much income from their investments.
Additionally, VIG is heavily weighted towards certain sectors, such as technology and healthcare, which could be a concern for investors who are looking for more diversification.
Which one should you choose? SCHD vs VYM vs VIG
When it comes to choosing between SCHD, VYM, and VIG, the decision ultimately comes down to your investment goals and risk tolerance. Here are a few factors to consider:
Dividend Yield: If you’re looking for a higher dividend yield, then VYM might be the better choice for you. It has a higher yield than SCHD and VIG, but keep in mind that a higher yield typically comes with higher risk.
Diversification: If you’re looking for a more diversified portfolio, then VYM might be the better choice for you. It includes more companies than SCHD and VIG, which can help spread out your risk.
Expense Ratio: If you’re looking for a low-cost option, then SCHD might be the better choice for you. It has a lower expense ratio than VYM and VIG, which means you’ll pay less in fees.
Performance: If you’re looking for a fund with a strong track record, then VIG might be the better choice for you. It has consistently outperformed SCHD and VYM over the past few years.
It’s important to do your research and consider all of the factors before making a decision.
Wrapping It Up: SCHD vs VYM vs VIG Well, folks, we’ve covered a lot of ground in this article comparing SCHD, VYM, and VIG. I hope you found it informative and helpful in making your investment decisions.
When it comes down to it, all three of these ETFs have their pros and cons.
SCHD and VYM both focus on high-quality dividend-paying companies, but SCHD has a slightly lower expense ratio and a better dividend growth track record.
VIG, on the other hand, focuses on dividend appreciation rather than high yield, making it a good choice for investors looking for long-term growth potential.
Before you head off, there articles will help
