Quick Read
-
SCHD outpaced VYM by $28,290 on a $300,000 investment over one year, costing label-followers $943 for every $10,000 invested.
-
The phrase ‘high dividend’ carries no regulatory definition, letting two funds share the general label while tracking entirely different indexes with different rules.
-
Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now. The report is free. Enter your email and see if any of your stocks made the cut.
Put $300,000 into the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) a year ago, and you held $342,720 on October 7, 2026. Put the same money into the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD), and you held $371,010. The two funds ended $28,290 apart.
This year alone, the gap is wider in proportion. Through October 7, VYM returned 11.70% year-to-date, while SCHD returned 22.03%. On $300,000 invested since January, that works out to roughly $335,100 versus $366,090, a $30,990 spread. Year-to-date, SCHD has returned about 1.9 times what VYM has. Over the full year, the multiple was about 1.7 times.
How These Returns Were Measured, Dividends Included
On a dividend-adjusted basis, we measured the two funds over an identical window ending October 7, 2026. That basis matters because both funds pay substantial quarterly distributions. VYM went ex-dividend most recently on September 18, 2026, and SCHD on September 23, 2026. Every dollar of income either fund paid already sits inside these return figures. VYM’s lag shows up after its dividends are already accounted for.
What Choosing by Label Costs per $10,000
Over the one-year window, the gap equals about $943 for every $10,000 invested. Picking between the two by name alone can be a costly mistake.
No rule standardizes the phrase “high dividend.” No regulator defines it. Two funds can both use it while tracking different indexes built on different rules and holding different companies in different proportions. The label tells you which shelf a fund sits on. It says almost nothing about what you own or how the fund will perform.
——
Free Report, Just Released
The Top 10 Stocks To Buy Now
24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.
The report is free, and you can see why we think each stock is a top investment today.
