GET DAILY SIGNALSSCHV vs VYM: Weighing Two Low-Cost Large-Cap Value ETFs
Key Takeaways
- Different strategies, overlapping goals: SCHV is a broad large-cap value fund, while VYM is an income-oriented fund that screens for above-average dividend yield.
- Identical ultra-low cost: Both now carry a 0.04% expense ratio, removing fees as a differentiator in this ETF comparison.
- Diversification differs: SCHV's largest position is roughly 3% of assets, whereas VYM holds about 7–8% in a single name, AVGO, adding concentration risk.
- Income and scale favor VYM: VYM yields around 2.3% and manages roughly $79 billion in ETF assets, versus a lower yield and roughly $15 billion for SCHV.
- Similar sector tilts: Both lean heavily on financials, technology, healthcare, and energy, so relative positioning depends more on dividend and valuation dynamics.
- Tickeron AI Verdict: VYM is the favored ticker, reflecting comparable cost, deeper liquidity, and stronger income characteristics.
Why These Two ETFs Keep Coming Up
SCHV and VYM often appear side by side in discussions of large-cap value and dividend-income strategies. They are not the same product: SCHV follows a pure value approach, while VYM focuses on stocks expected to deliver above-average dividend yields. Both attract investors looking for more defensive, cash-generating exposure outside of high-valuation growth names. With Vanguard’s recent fee cut bringing VYM down to the same 0.04% expense ratio as SCHV, the comparison has become even more relevant.
Schwab U.S. Large-Cap Value ETF (SCHV) at a Glance
SCHV tracks the Dow Jones U.S. Large-Cap Value Total Stock Market Index and holds approximately 559 stocks chosen for value characteristics such as lower price-to-book and price-to-earnings ratios, weighted by market cap. Launched in December 2009, the fund carries a 0.04% expense ratio. I also checked this using Tickeron’s AI Screener to see how the holdings stack up against peers.
Top positions include BRK.B, JPM, MU, XOM, JNJ, WMT, ABBV, and CSCO, none exceeding roughly 3% of assets. Financials lead sector exposure at about 19%, followed by information technology, industrials, healthcare, consumer staples, energy, and utilities. Without a dividend screen, SCHV keeps a broader value universe that includes some REITs and lower-yielding names.
Vanguard High Dividend Yield ETF (VYM) at a Glance
VYM tracks the FTSE High Dividend Yield Index, selecting U.S. companies forecast to pay above-average dividends, excluding REITs, and using buffer zones at rebalancing to control turnover. Launched in November 2006, it now also charges a 0.04% expense ratio. The fund holds roughly 605 stocks and offers a yield of about 2.3%. Its scale, around $79 billion in assets, supports tight spreads and strong liquidity. When comparing dividend characteristics, I ran a quick filter through Tickeron’s AI Screener to confirm the income profile.
Top holdings feature AVGO at roughly 7–8% of assets, along with JPM, XOM, JNJ, ABBV, CSCO, CVX, and CAT. Financial services dominate at about 21%, with meaningful weights in technology, healthcare, industrials, and energy.
Current Market Backdrop
Both funds respond to the same macro drivers: a higher-for-longer rate environment that supports financials and dividend-paying energy producers, steady demand for income amid growth-stock concentration, and rotation toward value sectors. Banks and energy names benefit from solid net interest margins and cash generation, while rate-sensitive utilities and cyclical industrials introduce sensitivity to shifts in rate expectations. Income-focused flows continue to support dividend strategies, though both remain exposed to earnings-cycle risks in their largest holdings.
How Performance and Positioning Compare
In recent cycles, VYM and SCHV have tracked closely due to overlapping sectors and similar valuations. VYM’s larger energy weighting and concentrated AVGO position have added volatility at times, while SCHV’s more balanced approach, including REITs and lower single-stock concentration, has delivered steadier results. VYM’s higher yield has helped income generation, and SCHV’s broader value methodology has captured a wider set of inexpensive large-caps. Volatility differences are modest, with VYM showing slightly lower beta and higher top-10 concentration. With costs now equal, relative results depend on sector rotation, dividend demand, and earnings from shared holdings such as JPM and XOM.
Tickeron AI Verdict
Overall, the data point toward favoring VYM. It matches SCHV’s 0.04% cost while delivering a higher dividend yield and a much larger asset base that supports better liquidity and tighter spreads. Its sector mix, led by financials and energy, fits the current income-oriented environment, and persistent flows into dividend strategies have helped trend consistency. The main caveat remains VYM’s higher concentration in AVGO, which adds idiosyncratic risk not present in the more diversified SCHV. Still, the combination of cost efficiency, income, scale, and sector momentum gives VYM the edge on balance.
Using Tickeron’s AI Tools in Practice
I’ve found Tickeron’s AI Screener helpful when comparing ETFs like these. It lets me quickly filter by yield, sector weights, concentration, and technical signals, which makes it easier to spot differences in liquidity and income characteristics without manually digging through dozens of holdings. The tool has become a regular part of my research workflow for side-by-side fund analysis.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for SCHV turns negative, indicating new downward trend
SCHV saw its Momentum Indicator move below the 0 level on November 05, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned negative. In 60 of the 77 cases, the stock moved further down in the following days. The odds of a decline are at 78%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for SCHV moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In 34 of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at 71%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 44 of 59 cases where SCHV's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 75%.
The Moving Average Convergence Divergence Histogram (MACD) for SCHV turned negative on November 06, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In 40 of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at 75%.
SCHV moved below its 50-day moving average on November 05, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCHV declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
SCHV broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The 10-day moving average for SCHV crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.
Following a +1.24% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCHV advanced for three days, in 279 of 339 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
The Aroon Indicator entered an Uptrend today. In 301 of 385 cases where SCHV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
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