High-Yield Dividend ETF Comparison: SCHD vs VYM

Two high-yield dividend ETFs, Vanguard High Dividend Yield ETF (VYM) and Schwab U.S. Dividend Equity ETF (SCHD), are compared. While VYM tracks the FTSE High Dividend Yield Index and includes the top half-yielding stocks, SCHD follows the Dow Jones U.S. Dividend 100 Index, using a more robust selection process that incorporates dividend payment history, yield, and fundamentals. SCHD's screening process is considered more effective at selecting high-quality dividend stocks, making it a better choice than VYM.