SCHB vs VYM
Schwab US Broad Market ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
SCHB has a lower expense ratio. VYM delivered stronger 1-year returns. SCHB offers more diversification with 2,411 holdings.
Side-by-Side Comparison
| Metric | SCHB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $45.2B | $81.6B | |
| Dividend Yield | 1.04% | 2.24% | |
| Holdings | 2,411 | 616 | |
| YTD Return | +13.11% | +15.25% | |
| 1Y Return | +20.63% | +22.18% | |
| 3Y Return (annualized) | +21.44% | +18.83% | |
| 5Y Return (annualized) | +11.88% | +12.09% | |
| Volatility (annualized) | 14.9% | 14.6% | |
| Max Drawdown | -35.3% | -58.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 3, 2009 | Nov 10, 2006 |
SCHB vs VYM Performance
Schwab US Broad Market ETF (SCHB) is a ETF from Charles Schwab Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SCHB returned +20.63% while VYM returned +22.18%. Year to date, SCHB is up 13.11% versus a gain of 15.25% for VYM.
Over three years, SCHB compounded at +21.44% per year against +18.83% for VYM; over five years the annualized figures are +11.88% and +12.09% respectively. Across the full 17-year window we track, SCHB has the edge at +12.99% annualized vs +7.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHB has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -35.3% for SCHB and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHB charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHB currently yields 1.04% against 2.24% for VYM.
Holdings Overlap
SCHB and VYM share 560 holdings out of 2389 unique holdings combined, representing a 33.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHB or VYM?
SCHB has an expense ratio of 0.03% while VYM charges 0.04%. SCHB is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHB or VYM?
Over the past year SCHB returned +20.63% vs +22.18% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), SCHB annualized +12.99% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, SCHB or VYM?
SCHB has been the more volatile fund at 14.9% annualized versus 14.6% for VYM. Worst drawdown: SCHB -35.3% vs VYM -58.8%.
Should I hold both SCHB and VYM?
SCHB and VYM have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SCHB and VYM?
SCHB and VYM share 560 common holdings with a 33.1% weight overlap. Combined, they hold 2389 unique securities.
Which pays a higher dividend, SCHB or VYM?
SCHB yields 1.04% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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