SCHD and VYM Are Crushing the S&P 500 and Nasdaq-100. Here's the Better ETF of the 2 to Buy for Passive Income in August.

The Schwab U.S. Dividend Equity ETF (SCHD +0.85%) and Vanguard High Dividend Yield ETF (VYM +0.26%) have no shortage of similarities. Key differences between SCHD and VYMUnlike covered call ETFs, the Schwab U.S. Dividend Equity ETF and Vanguard High Dividend Yield ETF do not cap their upside. The biggest difference is that the Schwab U.S. Dividend Equity ETF focuses more on current dividend yield, whereas the Vanguard High Dividend Yield ETF emphasizes both dividend growth and yield. In contrast, the Vanguard High Dividend Yield ETF's largest holding is Broadcom at 7.3%. The Schwab U.S. Dividend Equity ETF has produced a 225.7% total return over the past decade compared to 199.2% for the Vanguard High Dividend Yield ETF.