Vanguard vs. Schwab: The Dividend ETF Battle To Watch
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Vanguard vs. Schwab: The Dividend ETF Battle To Watch
"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.""
Dividend ETFs are rising in popularity as interest rates decline and investors move out of cash into higher-yielding positions to generate income. Competition in the ETF space is concentrated between Vanguard and Schwab, each appealing to different investor needs. Vanguard emphasizes scale and simplicity, offering broad exposure across high-yield names and long-standing dividend payers. Schwab offers a curated approach tailored to precision trading and large portfolios. Vanguard's flagship VYM has shown strong year-to-date performance and delivers a multi-dollar annual dividend with a quarterly payout, attracting income-focused, long-term investors.
Read at 24/7 Wall St.
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