SCYB vs VYM
Schwab High Yield Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
SCYB has a lower expense ratio. VYM delivered stronger 1-year returns. SCYB offers more diversification with 1463 holdings.
Side-by-Side Comparison
| Metric | SCYB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $2.7B | $79.0B | |
| Dividend Yield | 6.90% | 2.86% | |
| Holdings | 1,838 | 568 | |
| YTD Return | +1.84% | +16.53% | |
| 1Y Return | +4.85% | +25.03% | |
| 3Y Return (annualized) | +7.98% | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 4.4% | 14.6% | |
| Max Drawdown | -4.9% | -58.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 11, 2023 | Nov 10, 2006 |
SCYB vs VYM Performance
Schwab High Yield Bond ETF (SCYB) 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 SCYB returned +4.85% while VYM returned +25.03%. Year to date, SCYB is up 1.84% versus a gain of 16.53% for VYM.
Over three years, SCYB compounded at +7.98% per year against +18.54% for VYM. Across the full 3-year window we track, SCYB has the edge at +7.95% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.4% for SCYB. 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 -4.9% for SCYB 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCYB 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, SCYB currently yields 6.90% against 2.86% for VYM.
Holdings Overlap
SCYB and VYM share 3 holdings out of 2018 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCYB or VYM?
SCYB has an expense ratio of 0.03% while VYM charges 0.04%. SCYB is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCYB or VYM?
Over the past year SCYB returned +4.85% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), SCYB annualized +7.95% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, SCYB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.4% for SCYB. Worst drawdown: SCYB -4.9% vs VYM -58.8%.
Should I hold both SCYB and VYM?
SCYB and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCYB and VYM?
SCYB and VYM share 3 common holdings with a 0.1% weight overlap. Combined, they hold 2018 unique securities.
Which pays a higher dividend, SCYB or VYM?
SCYB yields 6.90% while VYM yields 2.86%, so SCYB currently pays the higher dividend yield.
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