SCHD vs. VYM: Which Dividend ETF Deserves a Spot in Your Income Portfolio?
Contrary to a common assumption, not all dividend funds are the same. Most of the most popular ones are noticeably different than one another, while some of them are surprisingly downright distinct. Ignoring these differences could prevent income investors from meeting their true goals. With that as the backdrop, any income seekers mulling either the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) or the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) -- two of the market's most popular and biggest (as measured by total assets) ETFs -- right now will want to keep reading. Here's a closer look at each and the key ways they differ. One or the other will most definitely be a better fit for your portfolio. As the name suggests, the Vanguard High Dividend Yield ETF's primary purpose is to offer investors higher yields than they might get with the average dividend stock. Based on the FTSE® High Dividend Yield Index , its top holdings right now include familiar names like Broadcom , JPMorgan Chase , ExxonMobil , and pharmaceutical company Johnson & Johnson ... names known for being solid dividend payers. Continue reading