SCHM vs VYM
Schwab US Mid Cap ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
SCHM has a lower expense ratio. SCHM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | SCHM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $14.6B | $79.0B | |
| Dividend Yield | 1.20% | 2.86% | |
| Holdings | 497 | 568 | |
| YTD Return | +18.39% | +16.10% | |
| 1Y Return | +28.94% | +25.99% | |
| 3Y Return (annualized) | +16.06% | +18.29% | |
| 5Y Return (annualized) | +8.06% | +12.35% | |
| Volatility (annualized) | 17.2% | 14.6% | |
| Max Drawdown | -42.4% | -58.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 13, 2011 | Nov 10, 2006 |
SCHM vs VYM Performance
Schwab US Mid Cap ETF (SCHM) 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 SCHM returned +28.94% while VYM returned +25.99%. Year to date, SCHM is up 18.39% versus a gain of 16.10% for VYM.
Over three years, SCHM compounded at +16.06% per year against +18.29% for VYM; over five years the annualized figures are +8.06% and +12.35% respectively. Across the full 16-year window we track, SCHM has the edge at +10.35% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHM has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -42.4% for SCHM 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHM 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, SCHM currently yields 1.20% against 2.86% for VYM.
Holdings Overlap
SCHM and VYM share 143 holdings out of 909 unique holdings combined, representing a 6.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHM or VYM?
SCHM has an expense ratio of 0.03% while VYM charges 0.04%. SCHM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHM or VYM?
Over the past year SCHM returned +28.94% vs +25.99% for VYM, so SCHM leads on 1-year performance. Over the longest common window we track (16 years), SCHM annualized +10.35% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, SCHM or VYM?
SCHM has been the more volatile fund at 17.2% annualized versus 14.6% for VYM. Worst drawdown: SCHM -42.4% vs VYM -58.8%.
Should I hold both SCHM and VYM?
SCHM and VYM have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHM and VYM?
SCHM and VYM share 143 common holdings with a 6.1% weight overlap. Combined, they hold 909 unique securities.
Which pays a higher dividend, SCHM or VYM?
SCHM yields 1.20% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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