VYM Over SCHD: Why Broader Diversification Wins In This Market

Vanguard High Dividend Yield Index Fund ETF is upgraded to bullish, favored over SCHD for its broad diversification and resilience in volatile, risk-prone markets. VYM's construction—tracking the FTSE High Dividend Yield Index, excluding REITs, and market-cap weighting—mitigates yield traps and prioritizes stability and sustainable income. In recent 1- and 3-year periods, VYM outperformed SCHD in total return, offering strong appreciation and competitive yield across nearly 570 holdings.