SCHD, VYM and VIG are all US dividend ETFs, but they select their stocks in different ways, so they are not interchangeable. In short: SCHD looks for high yield plus financial quality, VYM looks for above-average yield across a broad group, and VIG looks for companies that grow their dividends.
SCHD vs VYM vs VIG: Which Dividend ETF?
SCHD, VYM and VIG are three popular US dividend ETFs. Compare what each index selects: quality, high yield or dividend growth.
At a glance
Schwab U.S. Dividend Equity ETF
SCHD
|
Vanguard High Dividend Yield ETF
VYM
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Vanguard Dividend Appreciation ETF
VIG
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|
|---|---|---|---|
| Exchange | NYSE Arca | NYSE Arca | NYSE Arca |
| Issuer | Charles Schwab | Vanguard | Vanguard |
| Category | US dividend stocks | US dividend stocks | US dividend stocks |
| Tracks | Dow Jones U.S. Dividend 100 Index | FTSE High Dividend Yield Index | S&P U.S. Dividend Growers Index |
| Launched | 2011 | 2006 | 2006 |
| Regular dividend | Yes | Yes | Yes |
| Full profile | Read the profile → | Read the profile → | Read the profile → |
Price chart
Live data by TradingViewKey differences
What they select
SCHD follows high-yielding companies with a record of consistent dividends, screened for financial strength. VYM follows companies with above-average dividends. VIG follows companies with a record of increasing dividends.
Yield vs growth
VYM and SCHD usually offer a higher starting yield. VIG usually offers a lower starting yield with a bigger focus on dividend growth.
REITs
VYM's index excludes REITs. Real estate is not a focus for the other two.
Issuer and age
SCHD is from Charles Schwab and launched in 2011. VYM and VIG are from Vanguard and both launched in 2006.
Overlap
All three hold many of the same large, established US companies, so owning more than one adds little diversification.
What to check before choosing
- Do you want more income now (VYM, SCHD) or income that grows faster (VIG)?
- How important is a quality screen to you?
- What are the current yields and fees of each fund?
This is general education, not a recommendation. Fees, yields and prices change, so check current figures with the issuer or your broker.
Frequently asked questions
Which is best, SCHD, VYM or VIG?
It depends on whether you want yield, quality or dividend growth. They hold overlapping companies, so most investors choose one.
Which has the highest yield?
VYM and SCHD usually yield more than VIG. Check the current yields on the issuers’ websites.
Can I own all three?
You can, but the overlap is large, so it adds little diversification.
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