SCHD vs. VIG: Which Dividend ETF Is Better?
These two dividend ETFs have distinct strategies and portfolio compositions, but one is better suited to the current economic environment.
Overview
Two of the best dividend ETFs in the marketplace are the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) and the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). While they share ultra-low expense ratios, strong long-term track records, and loyal investor followings, they differ in how they construct their portfolios.
The Vanguard Dividend Appreciation ETF is more of a pure dividend growth play. It requires companies to have a 10-year-plus track record of consecutive annual dividend growth.
Details
The Schwab U.S. Dividend Equity ETF looks for strong balance sheet fundamentals, a history of dividend payments, dividend growth, and a high yield in its selection process.
Source
Originally published at www.fool.com.