Comparing Vanguard High Dividend Yield ETF and Schwab U.S. Dividend Equity ETF for Dividend-Focused Investors

Vanguard High Dividend Yield ETF (VYM) and Schwab U.S. Dividend Equity ETF (SCHD) are popular dividend-focused ETFs. VYM tracks the FTSE High Dividend Yield Index and charges a marginally lower fee, while SCHD follows the Dow Jones U.S. Dividend 100 Index and offers a higher yield and a more concentrated portfolio. SCHD focuses on energy and consumer defensive stocks, while VYM spreads its bets across nearly 600 holdings. VYM is more affordable with a 0.04% expense ratio, while SCHD costs 0.06%. SCHD offers a higher dividend yield of 3.51%, compared to VYM's 2.33%.