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.
SCHD vs. VIG: Which Dividend ETF Is Better?
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.
