Comparing SCHD, VYM, and TIGER High-Dividend ETFs: Fees, Yields, Composition

Graph of dividend ETF performance
< Graph of dividend ETF performance >

Why Dividend ETFs Are Popular

Dividend ETFs are a go-to for investors seeking passive income and diversification. They pool high-dividend stocks, reducing risk while delivering steady payouts. This post compares two leading global dividend ETFs—Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM)—against South Korea’s TIGER High-Dividend ETF. We’ll analyze fees, yields, and portfolio composition to help you choose the best fit.

Key Metrics for Comparison

To evaluate these ETFs, we focus on:

  • Expense Ratio: Lower fees mean more returns for you.
  • Dividend Yield: Higher yields boost income but may signal risk.
  • Portfolio Composition: Diversification and sector exposure affect stability.
  • Holdings Quality: Blue-chip stocks ensure reliability.


Global Dividend ETFs: SCHD and VYM

1. Schwab U.S. Dividend Equity ETF (SCHD)

  • Expense Ratio: 0.06% (ultra-low)
  • Dividend Yield: ~3.4% (trailing 12 months, April 2025)
  • Portfolio Composition: Tracks the Dow Jones U.S. Dividend 100 Index, holding 101 stocks with a focus on quality and sustainability. Top sectors: financials (23%), healthcare (15%), industrials (14%). Top holdings: BlackRock (1.9% yield), Chevron, Bristol-Myers Squibb.
  • Strengths: High yield with strong fundamentals; companies must have 10+ years of consistent dividends. Concentrated (top 10 holdings: 40.7%) but diversified across sectors.
  • Risks: Heavy healthcare/staples weighting (25-30%) underperformed in 2024.

2. Vanguard High Dividend Yield ETF (VYM)

  • Expense Ratio: 0.06% (matches SCHD)
  • Dividend Yield: ~3.0%
  • Portfolio Composition: Tracks the FTSE High Dividend Yield Index, holding 538 stocks for broad diversification. Top sectors: financials (23%), healthcare (15%), consumer staples (12%). Top holdings: Broadcom (1.3% yield), JPMorgan Chase, ExxonMobil.
  • Strengths: Highly diversified (top 10 holdings: 24.7%); market-cap weighting favors stable large-caps. Solid 10-year return (9.9%).
  • Risks: Lower yield than SCHD; includes tech stocks like Broadcom, which may dilute dividend focus.
U.S. stock market with ETF logos
< U.S. stock market with ETF logos >

Korean Dividend ETF: TIGER High-Dividend

  • Expense Ratio: 0.29% (higher than SCHD/VYM)
  • Dividend Yield: ~5.0% (attractive for Korea)
  • Portfolio Composition: Tracks the FnGuide High Dividend Index, holding ~30 stocks from the KOSPI. Top sectors: financials (30%), industrials (20%), materials (15%). Top holdings: KB Financial Group, Hyundai Motor, SK Telecom.
  • Strengths: High yield suits income-focused investors; focuses on undervalued Korean blue-chips with stable cash flows.
  • Risks: Less diversified (fewer holdings); higher fees erode returns. Vulnerable to Korea’s economic cycles.

Head-to-Head Comparison

  • Fees: SCHD and VYM (0.06%) are cheaper than TIGER (0.29%), saving costs over time. For $10,000 invested, TIGER’s fees are $29/year vs. $6 for SCHD/VYM.
  • Yields: TIGER’s 5.0% yield beats SCHD (3.4%) and VYM (3.0%), ideal for income seekers. However, high yields may reflect riskier stocks.
  • Composition: SCHD and VYM offer broader diversification (101 and 538 stocks vs. TIGER’s 30). SCHD emphasizes quality, VYM prioritizes large-caps, while TIGER leans on Korean financials/industrials.
  • Performance: VYM’s 5-year return (10.8%) slightly lags SCHD’s (12.7%). TIGER’s performance varies with KOSPI but offers value in undervalued markets.

Which ETF Is Right for You?

  • Choose SCHD if you want high yield with quality focus and low fees. Best for U.S.-focused investors.
  • Choose VYM if you prefer maximum diversification and stability. Ideal for conservative investors.
  • Choose TIGER High-Dividend if you seek high income and believe in Korea’s value stocks. Suits regional investors.

Diversify Your Income

SCHD, VYM, and TIGER High-Dividend each offer unique benefits. SCHD balances yield and quality, VYM excels in diversification, and TIGER delivers high income. Consider your risk tolerance, income needs, and market preferences. Research further and consult a financial advisor before investing.


Disclaimer: This post is for informational purposes only and not investment advice. Always conduct your own research.


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