Is SCHD a Better Dividend ETF Than VIG?
Portfolio size, sector focus, and risk profiles set these two dividend ETFs apart for investors seeking income or growth.
Is SCHD a Better Dividend ETF Than VIG?
Overview
Comparing Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) to Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) reveals two distinct strategies: one prioritizes current high yields while the other focuses on consistent dividend growth and technology exposure.
Investors often weigh these two funds when seeking exposure to reliable American companies. Vanguard Dividend Appreciation ETF targets large-capitalization companies with decade-long streaks of dividend increases, whereas Schwab U.S. Dividend Equity ETF focuses on fundamental strength and sustainability, resulting in two very different ways to own the dividend-paying market. Understanding whether you value immediate yield or long-term growth is central to choosing between these two exchange-traded funds.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.
