SCHD top sectors
Consumer Staples ~19%, Energy ~19%, Healthcare ~16%. Quality + defensive.
Guardfolio Research · ETF Overlap
SCHD vs VYM Overlap: 2.9% by Weight — Quality vs Yield
SCHD and VYM are both popular US dividend ETFs, but they share only 2 of their top 10 holdings and 2.9% of weight. SCHD screens for dividend quality and growth (Schwab's methodology emphasises return on equity and dividend payment streak). VYM screens for high current yield. The two screens land on substantially different stocks — and on different sectors.
Overlap Summary
Weight Overlap2.93%
Shared Top-102 of 10
Overlap LevelLow
UpdatedMay 2026
Bottom line
Two dividend ETFs, two genuinely different strategies.
The Data
Exactly which stocks SCHD and VYM share
The table below shows the 2 holdings that appear in both funds' top 10, with each fund's weight. The combined effective weight in a 50/50 portfolio is shown in the final column.
| Stock | SCHD weight | VYM weight | 50/50 combined |
|---|---|---|---|
| Chevron Corp. (CVX) | 4% | 1.5% | 2.75% |
| The Procter & Gamble Company (PG) | 3.59% | 1.43% | 2.51% |
| Total shared weight | 7.59% | 2.93% | 5.26% |
Weights reflect each fund's top-10 holdings as published in issuer filings, refreshed quarterly. The 2.93% overlap figure uses the minimum of each fund's weight per shared holding (the standard weight-based overlap calculation).
See your real SCHD + VYM overlap
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Sector Concentration
What the combination does to your sector mix
The funds' different selection rules show up clearly in sector weights:
VYM top sectors
Financial Services ~22%, Technology ~15%, Industrials ~12%. Yield + cyclical.
50/50 SCHD + VYM blend
Financials ~11%, Staples ~10%, Energy ~10%. More balanced, but more concentrated in the broad dividend factor than VOO would be.
Key Distinction
SCHD vs VYM: what is actually different
The table below summarises the structural differences that drive each fund's behaviour beyond the headline overlap number.
| SCHD | VYM | |
|---|---|---|
| Selection methodology | Dividend quality + 10-yr streak | High dividend yield |
| Number of holdings | ~100 | ~440 |
| Top sector | Consumer Staples ~19% | Financial Services ~22% |
| Top-10 weight | ~44% | ~26% |
| Dividend yield (approx) | ~3.6% | ~2.7% |
| Expense ratio | 0.06% | 0.06% |
| Main use case | Quality dividend growth | Higher current yield |
Practical Implications
When does this overlap actually matter?
In a rising-rate environment
VYM's Financials weighting tends to benefit. SCHD's defensive sectors lag rate-sensitive names. The blend captures both effects.
In a recession
SCHD's Staples + Healthcare tilt holds up better than VYM's Financials + Industrials. The quality screen is partly a recession hedge.
For dividend growth
SCHD's 10-year payment streak requirement means its holdings tend to grow dividends consistently. VYM screens for current yield, not growth, so its holdings can include slower-growing payers.
For total yield
VYM does not always have a higher trailing yield — SCHD has run close to or above VYM in recent years. The strategies converge more than the names suggest.
Alternatives
What pairs differently with SCHD
SCHD + VOO (0% overlap)
For factor diversification, SCHD's 0% top-10 overlap with VOO makes it the cleaner complement to a broad-market core than a second dividend fund.
VYM + VIG
VIG (dividend appreciation) has its own quality screen but with different criteria. VIG + VYM combines yield and growth differently than SCHD + VYM.
SCHD or VYM alone, plus international
Adding VEA or VWO to either dividend fund diversifies geographically — likely more impactful than holding both US dividend funds.
Frequently Asked Questions
SCHD vs VYM overlap — common questions
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