Even if you follow the stock market intermittently, you know that dividend ETFs are having a moment. The thing is, this current trend of conversation around dividend ETFs is only going to grow as interest rates decline and investors rotate out of cash positions and seek higher yields in their portfolios to generate income.
Vanguard High Dividend Yield ETF (VYM) is up 11.78% year to date and offers a 2.51% yield with a $3.52 annual dividend.
Schwab US Dividend Equity ETF (SCHD) holds 103 stocks with a 3.89% yield and shows 5.79% dividend growth.
Vanguard prioritizes breadth across hundreds of stocks while Schwab focuses on concentrated holdings with higher yields.
Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.
As you look deeper at the diversified battle, nowhere is it more competitive than in the ETF world, specifically between Vanguard and Schwab’s various holdings. Two of the biggest names in the investment world are front and center for investors, both retail and professional alike, who look to create more wealth using dividends.
It’s safe to say that in 2025, this battle between two giants has become a closely watched duel in passive investing. Vanguard focuses on scale and simplicity, which has attracted more patient and long-term investors. On the other hand, you have Schwab, which offers a more curated approach ideal for investors seeking precision trading across large portfolios.
There may not be a bigger name in the dividend ETF world, thanks to some of its holdings being among the most popular in an already crowded industry. You could even say that Vanguard is the definition of what it means to “own the market.” In this sense, Vanguard’s selection of dividend ETFs gives you an opportunity and exposure to almost every corner of the market, from high-yield names to companies that have been consistent dividend payers for decades.
The firm’s flagship name is the Vanguard High Dividend Yield ETF (NYSE:VYM), which is the current benchmark for broad-based income. The ETF is currently up 11.78% YTD and offers a current yield of 2.51%, with a quarterly payout of 84 cents per share on September 19. The annual dividend of $3.52 is definitely attractive to investors who want to put money into the Vanguard High Dividend Yield ETF and “chill.”
Alternatively, you have the Vanguard Dividend Appreciation ETF (NYSE:VIG), which offers a more refined approach. This ETF is very attractive to investors who want to look at companies that have increased their dividends for at least 10 consecutive years, which adds a level of confidence.
