Schwab vs. Vanguard: Which Dividend ETF Is Best for Your Portfolio?

Comparing Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) and Vanguard High Dividend Yield ETF (NYSEMKT:VYM) reveals two low-cost income powerhouses with distinct approaches to portfolio concentration and yield.

Income investors often gravitate toward these two funds for their rock-bottom fees and focus on seasoned, dividend-paying companies. While both seek to provide steady cash flow, they differ in how they screen for quality and how many individual stocks they ultimately hold.

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The funds have pretty comparable expense ratios. However, Schwab's ETF currently offers a higher payout, with a yield gap of 1.1 percentage points.

Growth of $1,000 over 5 years (total return)

The Schwab ETF focuses on 103 holdings, creating a more concentrated portfolio than many of its peers. Its largest positions include UnitedHealth Group (NYSE:UNH) at 4.5%, Merck (NYSE:MRK) at 4.45%, and Home Depot (NYSE:HD) at 4.42%. The fund is primarily weighted toward technolog

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/schwab-vs-vanguard-dividend-etf-120501017.html)