SWTSX vs VYM
Schwab Total Stock Market Index Fund vs Vanguard High Dividend Yield ETF
Which is better, SWTSX or VYM?
Large Cap Blend against Large Cap Value.
SWTSX has a lower expense ratio. SWTSX led over 1Y, VYM over 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 32.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SWTSX | VYM |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.04% |
| AUM | $44.9B | $81.6B |
| Dividend Yield | 0.97% | 2.22% |
| Holdings | 2,987 | 613 |
| YTD Price Return | +11.50%Best | +10.38% |
| 1Y Price Return | +14.42%Best | +13.42% |
| 3Y Price Return (annualized) | -37.81% | +14.30%Best |
| 5Y Price Return (annualized) | -25.30% | +8.65%Best |
| Volatility (annualized) | 41.6% | 14.0%Best |
| Max Drawdown | -86.0% | -17.5%Best |
| $10,000 over 5 years | $2,326 | $15,141Best |
| Top 10 Weight | 32.8% | 26.1%Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jun 1, 1999 | Nov 10, 2006 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for SWTSX. Both funds are measured the same way, so the comparison holds. SWTSX yields 0.97% and VYM 2.22% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 17, 2021 to Sep 15, 2026 (5 years).
SWTSX vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
SWTSX vs VYM Performance
Schwab Total Stock Market Index Fund (SWTSX) is a mutual fund from Charles Schwab Asset Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year SWTSX returned +14.42% while VYM returned +13.42%. Year to date, SWTSX is up 11.50% versus a gain of 10.38% for VYM.
Over three years, SWTSX compounded at -37.81% per year against +14.30% for VYM; over five years the annualized figures are -25.30% and +8.65% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWTSX has been the more volatile fund, with annualized monthly volatility of 41.6% compared with 14.0% 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 -86.0% for SWTSX and -17.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.21. They move largely independently of each other.
Fees and Cost Over Time
SWTSX 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, SWTSX currently yields 0.97% against 2.22% for VYM.
Structure and taxes
SWTSX is a mutual fund and VYM is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
33.5% of SWTSX's money is in holdings VYM also owns. 97.4% of VYM's money is in holdings SWTSX also owns.
Most of VYM is already inside SWTSX. Owning both mostly buys the same companies twice.
The two holdings books were reported 181 days apart, SWTSX as of Jan 31, 2026 and VYM as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
529 positions in common, counted across the 2,962 positions we hold weights for in SWTSX and 557 in VYM, against full books of 2,987 and 613.
What only one of them owns
Our book lists 15 positions for VYM that do not appear in our book for SWTSX (1.0% of the fund), and 730 for SWTSX that do not appear in VYM (61.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SWTSX | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.33% | 7.35% | 5.02% |
| JPMJpmorgan Chase | 1.24% | 3.82% | 2.58% |
| XOMExxon Mobil Corp. | 0.89% | 2.63% | 1.74% |
| JNJJohnson & Johnson - Common | 0.81% | 2.51% | 1.70% |
| ABBVAbbvie Inc. | 0.59% | 1.80% | 1.21% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.46% | 1.86% | 1.40% |
| BACBank of America Corp.: Financials | 0.53% | 1.66% | 1.13% |
| CVXChevron Corp | 0.50% | 1.48% | 0.98% |
| CATCaterpillar, Inc. | 0.46% | 1.50% | 1.04% |
| UNHUnitedhealth Group Incorporated | 0.39% | 1.52% | 1.13% |
97.4% of VYM is already inside SWTSX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SWTSX or VYM?
SWTSX has an expense ratio of 0.03% while VYM charges 0.04%. SWTSX is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SWTSX or VYM?
Over the past year SWTSX returned +14.42% vs +13.42% for VYM, so SWTSX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SWTSX or VYM?
SWTSX has been the more volatile fund at 41.6% annualized versus 14.0% for VYM. Worst drawdown: SWTSX -86.0% vs VYM -17.5%.
Should I hold both SWTSX and VYM?
SWTSX and VYM have a monthly-return correlation of 0.21, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SWTSX and VYM?
97.4% of VYM's money is in holdings SWTSX also owns. 97.4% of VYM's is in holdings SWTSX also owns. They hold 529 positions in common, counted across the 2,962 positions we hold weights for in SWTSX and 557 in VYM.
Which pays a higher dividend, SWTSX or VYM?
SWTSX yields 0.97% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is it better to hold SWTSX or VYM in a taxable account?
VYM is an ETF and SWTSX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VYM better than SWTSX?
SWTSX has a lower expense ratio. SWTSX led over 1Y, VYM over 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 32.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.