SCHD vs VYM vs VHYD for UAE residents
SCHD holds 100 US companies chosen for steady dividends and sound finances, VYM holds US companies with above-average dividend yields, and VHYD holds high-dividend companies around the world. For an investor living in the UAE, how US dividends are taxed matters more here than for most funds.
In short
- Different indices: SCHD tracks the Dow Jones U.S. Dividend 100; VYM tracks the FTSE High Dividend Yield; VHYD tracks the FTSE All-World High Dividend Yield.
- Cost: lowest VYM at 0.04% a year, highest VHYD at 0.29% a year.
- Tax on US dividends for a UAE resident: SCHD and VYM usually have 30% withheld; VHYD, domiciled in Ireland, pays 15% inside the fund under the US and Ireland treaty.
- US estate tax: SCHD and VYM count as US assets, taxable above US$60,000 at rates up to 40% for a person who is not a US citizen or resident; VHYD is generally not treated as a US asset.
Facts, not a recommendation. Tax depends on your nationality, residence and facts; costs as of 30 Sep 2026.
The funds side by side
SCHD · Schwab U.S. Dividend Equity ETF
United States, Dow Jones U.S. Dividend 100
Dividends Paid out quarterlyListing NYSE Arca, US dollarsLaunched 2011
0.06%
Cost a year
VYM · Vanguard High Dividend Yield ETF
United States, FTSE High Dividend Yield
Dividends Paid out quarterlyListing NYSE Arca, US dollarsLaunched 2006
0.04%
Cost a year
VHYD · Vanguard FTSE All-World High Dividend Yield UCITS ETF (USD, Dist)
Ireland (UCITS), FTSE All-World High Dividend Yield
Dividends Paid out quarterlyListing London, US dollarsLaunched N/A
0.29%
Cost a year
| ETF | Domicile | Index | Dividends | Expense ratio | Listing | Launched |
|---|---|---|---|---|---|---|
| SCHD Schwab U.S. Dividend Equity ETF | United States | Dow Jones U.S. Dividend 100 | Paid out quarterly | 0.06% a year | NYSE Arca, US dollars | 2011 |
| VYM Vanguard High Dividend Yield ETF | United States | FTSE High Dividend Yield | Paid out quarterly | 0.04% a year | NYSE Arca, US dollars | 2006 |
| VHYD Vanguard FTSE All-World High Dividend Yield UCITS ETF (USD, Dist) | Ireland (UCITS) | FTSE All-World High Dividend Yield | Paid out quarterly | 0.29% a year | London, US dollars | N/A |
Expense ratios as reported by our market data, 30 Sep 2026. Our market data does not cover VHYD; its yearly charge is from the issuer's factsheet.
Returns in US dollars
| ETF | 1 year | 3 years (annualised) | 5 years (annualised) | 10 years (annualised) | Volatility 3Y |
|---|---|---|---|---|---|
| SCHD | +24.68% | +15.63% | +8.93% | +12.49% | 13.19% |
| VYM | +13.33% | +18.06% | +11.09% | +11.35% | 12.46% |
Total returns with dividends reinvested, to 30 Sep 2026. Returns over 3 years and longer are compounded annual returns. Past performance does not indicate future returns.
What differs for an investor living in the UAE
- US estate tax. SCHD, VYM are domiciled in the United States, so their shares count as US assets. For a person who is not a US citizen or resident, US estate tax can apply above US$60,000 of US assets, at rates that rise to 40%. VHYD, domiciled in Ireland, is generally not treated as US assets for this tax.
- Tax on US dividends. The UAE has no income tax treaty with the United States, so US dividends paid to a UAE resident usually have 30% withheld. An Irish UCITS fund pays 15% on the US dividends it receives, under the US and Ireland treaty, and accumulating funds reinvest the rest.
- Cost. Compare the expense ratios above; on funds tracking the same index, a lower yearly cost is the most certain difference in what you keep.
- Where you buy. The US funds trade in New York in US dollars; the UCITS funds named here trade in London in US dollars. Check which your broker offers and what it charges for each market.
The outcome depends on your nationality, residence and facts, so confirm your own position with a tax adviser. Sources: IRS, estate tax for nonresidents and US income tax treaties, checked October 2026.
Questions
Do SCHD, VYM, VHYD track the same thing?
Not exactly. SCHD tracks the Dow Jones U.S. Dividend 100; VYM tracks the FTSE High Dividend Yield; VHYD tracks the FTSE All-World High Dividend Yield. Their returns differ for that reason as well as cost.
Why does domicile matter for someone living in the UAE?
A US-domiciled ETF counts as a US asset. For a person who is not a US citizen or resident, US estate tax can apply to US assets above US$60,000, at rates that rise to 40%, and US dividends paid to a UAE resident usually have 30% withheld because the UAE has no income tax treaty with the United States. Ireland-domiciled UCITS ETFs are generally not treated as US assets for estate tax, and the fund pays 15% on its US dividends under the US and Ireland treaty. The outcome depends on your nationality, residence and facts, so confirm your position with a tax adviser.
What does accumulating mean?
An accumulating fund reinvests its dividends inside the fund instead of paying them out, so no dividend reaches your account. A distributing fund pays dividends out, usually every quarter.