Core Insights - Building a passive income stream through dividend ETFs does not require significant capital, with as little as $200 needed to invest in two high-yield options [1][2] Group 1: Dividend ETFs Overview - The Schwab US Dividend Equity ETF (SCHD) and the Vanguard International High Dividend Yield ETF (VYMI) provide substantial exposure to top dividend-paying companies in the U.S. and internationally [2][4] - Both ETFs are passively managed and track specific indexes, with SCHD following the Dow Jones US Dividend 100 Index [4][5] Group 2: Investment Criteria and Holdings - SCHD focuses on U.S. companies that have increased dividends for at least 10 consecutive years, excluding REITs, and uses a composite score for selection based on various financial metrics [5][6] - The Dow Jones US Dividend Index includes 100 companies with the highest composite scores, weighted by market capitalization, with Chevron and ConocoPhillips as the largest holdings [6] - VYMI tracks the FTSE All-World ex US High Dividend Yield Index, which includes over 1,500 stocks, excluding U.S. companies and REITs, with Nestlé and Roche as its largest holdings [7] Group 3: Dividend Performance - SCHD has a recent trading price of approximately $28 per share, projecting a 3.7% yield based on its last four dividend payments [8][9] - VYMI, trading around $83 per share, has a quarterly dividend payout that has increased by 13.3% annually over the past five years, potentially offering a 4% yield over the next 12 months [10] Group 4: Expense Ratios - Both ETFs have low expense ratios, with SCHD at 0.06% and VYMI at 0.17%, allowing most gains to reach investors [11] Group 5: Investment Strategy - Although SCHD has underperformed VYMI in the past five years, diversifying investments between the two ETFs can provide geographical diversity in a portfolio [12]