The big question on every investor’s mind: Is now the perfect time for SCHD to shine in the stock market?
With the tech selloff dominating headlines, it’s been a rough ride. Stocks we loved—especially in tech and software—have taken a beating. The NASDAQ has been one of the worst-performing indexes recently. Amid this chaos, funds like SCHD have skyrocketed—but is it truly the best option for your portfolio?
Let’s break down SCHD vs VYM, compare their performance, and help you see which might be a safer or smarter choice in today’s market.
Why Tech Stocks Are Falling (And Why Investors Are Flocking to Dividend ETFs)
Software stocks are hurting hard, and retail investors are noticing. Microsoft is down 17%, Oracle over 26%, and other fan favorites like Adobe, CrowdStrike, and Palantir are heavily beaten up. Even the cyber security sector, once a hot favorite, is seeing discounts.
Where’s all this money going? Into safer, more stable funds like SCHD and VYM. Investors are seeking shelter from tech volatility and the ongoing AI bubble uncertainty.
SCHD: Quality and Consistency
SCHD is all about quality. It tracks the Dow Jones U.S. Dividend 100 Index, focusing on companies with sustainable, reliable dividends rather than chasing high yields.
Pros:
Low expense ratio: 0.06%
Consistent dividend payments
Quality-focused holdings
Cons:
Lower yield (~3.5–4.5%)
Lags in high-growth years compared to SPY or NASDAQ
Despite lower yield, SCHD is beloved by investors seeking consistency and stability, especially during turbulent markets. Its massive assets (~$83B) and 101 holdings make it a solid long-term choice for conservative investors.
VYM: The Underrated Contender
Vanguard High Dividend Yield ETF (VYM) is a close competitor to SCHD. It tracks the FTSE High Dividend Yield Index, focusing on companies with above-average dividend yields.
Key points:
Expense ratio: 0.04% (slightly cheaper than SCHD)
563 holdings (much more diversified than SCHD)
Total net assets: ~$84B
Performance-wise, VYM often outperforms SCHD in certain years, particularly when tech stocks recover. Its heavy exposure to finance and electronic technology can provide a nice complement to a portfolio anchored in SCHD’s stability.
Head-to-Head: SCHD vs VYM
| Feature | SCHD | VYM |
|---|---|---|
| Holdings | 101 | 563 |
| Expense Ratio | 0.06% | 0.04% |
| Largest Sectors | Health tech, consumer non-durables, energy | Finance, electronic tech |
| 1-Year Total Return | 17.51% | 20.05% |
| 3-Year Total Return | 38% | 54.24% |
Recent market trends show SCHD gaining faster in short-term rebounds, while VYM has stronger long-term performance. Both ETFs have their fans—and many investors choose to hold both in a diversified portfolio.
Bottom Line: Which Dividend ETF Is Right for You?
SCHD: Great for consistency, quality, and sustainable dividends.
VYM: Offers higher diversification and often stronger long-term returns.
Both ETFs are solid, but your choice depends on your risk tolerance, investment horizon, and portfolio strategy.
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💡 Pro Tip: For younger investors or those looking for growth, combining both SCHD and VYM can create a balanced strategy—quality dividends plus long-term diversification.
✅ If you found this guide helpful, share it, comment your favorite ETF, and stay ahead in 2026!
