The analysis compares SCHD (Schwab U.S. Dividend Equity ETF) and VYM (Vanguard High Dividend Yield Index Fund), both dividend-focused ETFs. SCHD, tracking the Dow Jones U.S. Dividend 100 Index, prioritizes dividend quality, sustainability, and financial strength, requiring a minimum of 10 consecutive years of dividend payments. Its top sector exposures include Energy, Consumer Defensive, and Healthcare, with relatively low technology allocation. SCHD's 1-year price return is -5.17%, and its 3-year price return is 5.6%. Its 1-year dividend growth CAGR is 3.5%, with a 10-year CAGR of 11.25%. The expense ratio is 0.06%. VYM, tracking the FTSE High Dividend Yield Index, focuses on high dividend yield stocks, excluding REITs. Its top sector exposures are Financial Services, Technology, and Healthcare. VYM's 1-year price return is 6.6%, and its 3-year price return is 26%. Its 1-year dividend growth CAGR is -1.30%, with a 10-year CAGR of 4.16%. The expense ratio is also 0.06%. While both ETFs have delivered similar overall total returns since SCHD's inception in 2011 (approx. 12% CAGR), VYM is projected to outperform SCHD in 2026. This is primarily due to VYM's heavier allocation to sectors like technology and financial services, which have shown stronger recent performance and higher projected earnings growth in individual holdings (e.g., Broadcom, JPMorgan Chase). SCHD's higher exposure to underperforming sectors like energy producers and defensive consumer staples, combined with slower dividend growth, is expected to temper its near-term performance in a continued bull market. However, SCHD could offer better insulation during a potential bear market or an AI-related market correction.