The three largest U.S. dividend ETFs follow three different recipes, and the results in 2026 show it. As of June 30, 2026, the Schwab U.S. Dividend Equity ETF (SCHD) had returned 24.1% over one year at net asset value, the Vanguard High Dividend Yield ETF (VYM) 21.52%, and the Vanguard Dividend Appreciation ETF (VIG) 17.53% [1][2][3]. VYM paid $3.63 per share in dividends over the four quarters through June 18, 2026, a trailing yield of 2.25% on its July 10, 2026 close of $161.06 [4]. All three dividend ETFs are cheap to own (0.04% to 0.06% a year), but they differ sharply in the number of stocks, the sector mix, and the balance between current yield and dividend growth.
How the three dividend ETFs select stocks
SCHD tracks the Dow Jones U.S. Dividend 100 Index, which measures high dividend yielding U.S. stocks with a record of consistently paying dividends, selected for fundamental strength relative to peers based on financial ratios; the fund invests at least 90% of assets in index stocks [3]. The result is a compact portfolio of about 100 names with a quality and yield tilt. VYM tracks the FTSE High Dividend Yield Index, a broad basket of U.S. stocks forecast to have above average dividend yields; it excludes real estate investment trusts, which generally do not qualify for the lower tax rate on qualified dividends, and it uses buffer zones at its annual rebalance to hold down turnover [1]. VIG tracks the S&P U.S. Dividend Growers Index and emphasizes large companies with a record of raising dividends year after year, regardless of the current yield [2].
Those rules translate into very different portfolio sizes. VYM held 605 stocks as of June 30, 2026, VIG held 332, and SCHD's index is built around 100 constituents [1][2][3]. Investors can follow the daily prices of all three on DataPorium's ETF page.
Holdings and sector weights as of June 30, 2026
The two Vanguard fact sheets make the overlap and the differences visible. Broadcom (AVGO) was the largest holding in both VYM (7.3%) and VIG (4.5%), and JPMorgan Chase (JPM) and Johnson & Johnson (JNJ) appear in both top ten lists [1][2]. From there the funds diverge. VIG's next largest positions were Apple (AAPL) at 4.2%, Eli Lilly (LLY) at 4.1% and Microsoft (MSFT) at 3.5%, none of which are high yield stocks, while VYM's list continues with Exxon Mobil (XOM) at 2.4%, Caterpillar (CAT) at 2.0% and Cisco Systems (CSCO) at 1.9% [1][2].
| Metric (June 30, 2026) | VYM | VIG | SCHD |
|---|---|---|---|
| Expense ratio | 0.04% [1] | 0.04% [2] | 0.06% [3] |
| Number of stocks | 605 [1] | 332 [2] | about 100 (index) [3] |
| Top ten weight | 25.9% [1] | 31.9% [2] | n/a |
| Price/earnings | 21.6x [1] | 26.6x [2] | n/a |
| 1 year return (NAV) | 21.52% [1] | 17.53% [2] | 24.1% [3] |
| 5 year return (annualized, NAV) | 11.78% [1] | 10.90% [2] | 8.5% [3] |
| 10 year return (annualized, NAV) | 11.61% [1] | 13.13% [2] | 12.4% [3] |
| ETF net assets | $79.0 billion [1] | $110.2 billion [2] | n/a |
Sector tilts explain the return gap
VIG carried 26.3% in information technology, 20.7% in financials, 17.7% in health care and 12.0% in industrials as of June 30, 2026 [2]. VYM's largest sectors were financials at 20.6%, technology at 14.6%, industrials at 14.4% and health care at 12.4%, with consumer staples and energy at 8.5% each [1]. The heavier technology weight gives VIG a higher price to earnings ratio (26.6 times versus 21.6 times for VYM) and a lower starting yield, but it also produced the best ten year record of the three at 13.13% annualized [1][2]. SCHD's shorter one year lead (24.1%) came with a weaker five year figure of 8.5% annualized, a reminder that value and yield screens go through long stretches of lagging growth heavy indexes [3].
Yield versus dividend growth: which matters more?
A dividend ETF can deliver income in two ways: a high starting yield or a rising payout. VYM's 2.25% trailing yield as of July 10, 2026 sits between a broad market fund and a pure high yield strategy [4]. Its quarterly payments over the past year were $0.842 (September 2025), $0.947 (December 2025), $0.862 (March 2026) and $0.980 (June 2026), so the income stream is uneven quarter to quarter but higher year over year [4]. VIG's design accepts a lower yield in exchange for companies that have compounded their dividends, which is why Apple and Microsoft can sit in its top ten. SCHD's fundamental screens (cash flow, return on equity, yield and dividend growth) aim for both, and its 24.1% one year return shows what happens when quality value stocks lead [3].
- Income now: SCHD and VYM screen for above average yield; VIG does not [1][2][3].
- Diversification: VYM's 605 holdings spread single stock risk the widest; SCHD's 100 stock index is the most concentrated [1][3].
- Growth exposure: VIG's 26.3% technology weight and 26.6 times earnings multiple make it the most growth oriented [2].
- Cost: the gap between 0.04% and 0.06% is $2 a year per $10,000 invested, small relative to the return differences [1][2][3].
SCHD led on one year return, VIG on ten year return and VYM on breadth, so the right dividend ETF depends on whether an investor wants yield today or dividend growth over time.
Key takeaways
- One year returns to June 30, 2026: SCHD 24.1%, VYM 21.52%, VIG 17.53% at net asset value [1][2][3].
- Ten year annualized returns favor VIG (13.13%) over SCHD (12.4%) and VYM (11.61%) [1][2][3].
- VYM's trailing yield was 2.25% on July 10, 2026, based on $3.63 of dividends over four quarters [4].
- VIG holds 26.3% in technology and trades at 26.6 times earnings; VYM holds 605 stocks at 21.6 times earnings [1][2].
- All three cost 0.04% to 0.06% a year, so selection rules, not fees, drive the differences [1][2][3].
Frequently asked questions
Which is better, SCHD or VYM?
Neither is better in every case. SCHD returned 24.1% and VYM 21.52% in the year to June 30, 2026, but VYM holds 605 stocks against about 100 for SCHD, so VYM spreads risk more widely while SCHD applies stricter quality and yield screens [1][3].
Does VIG pay a high dividend?
No. VIG selects companies with a record of raising dividends, not high current yields, which is why Apple, Microsoft and Eli Lilly were among its top holdings on June 30, 2026 [2].
What is the expense ratio of SCHD, VYM and VIG?
SCHD charges 0.06% a year, and VYM and VIG each charge 0.04% as of their June 30, 2026 fact sheets [1][2][3].
What yield does VYM pay in 2026?
VYM paid $3.63 per share in the four quarterly dividends through June 18, 2026, which equals a 2.25% trailing yield on its July 10, 2026 close of $161.06 [4].
