SCHD
Schwab U.S. Dividend Equity ETF
SCHD tracks the Dow Jones U.S. Dividend 100 Index, using traditional dividend screens: 10+ years of payments, financial health metrics, and dividend yield requirements. Market-cap weighted.
DGRW
WisdomTree U.S. Quality Dividend Growth Fund
DGRW tracks the WisdomTree U.S. Quality Dividend Growth Index, using fundamental weighting based on long-term earnings growth forecasts. No dividend history requirements, focuses on quality and growth.
Key Metrics Comparison
| Metric | SCHD | DGRW | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 1.85% | SCHD (+1.61%) |
| Expense Ratio | 0.06% | 0.28% | SCHD |
| 5-Year Annual Return | 11.2% | 12.5% | DGRW (+1.3%) |
| Dividend Growth (5Y) | 8.5% | 9.2% | DGRW (+0.7%) |
| Number of Holdings | 104 | 296 | DGRW |
| Assets Under Management | $95.2B | $12.8B | SCHD |
| P/E Ratio | 15.2 | 22.8 | SCHD |
| Beta (5-Year) | 0.85 | 0.95 | SCHD |
Performance Comparison
SCHD Performance
Strong performance with lower volatility. Higher dividend yield provides better income, but slightly lower total returns than DGRW.
DGRW Performance
Higher total returns with faster dividend growth. Lower yield but better capital appreciation due to growth focus.
Strategy Analysis
SCHD Approach
Traditional dividend screening with historical focus:
- Minimum 10 years of dividend payments
- Market cap > $500 million
- Dividend yield > 2.5% requirement
- Cash flow to total debt > 50%
- Return on equity > 15%
- Market-cap weighting
- Focus on proven dividend payers
DGRW Approach
Modern fundamental weighting with growth focus:
- No dividend history requirements
- Fundamental weighting based on earnings
- Long-term earnings growth forecasts
- Return on equity and return on assets screens
- Quality and growth metrics prioritized
- Higher growth, lower yield companies
- Forward-looking approach
Fundamental Weighting Explained
DGRW uses fundamental weighting based on long-term earnings growth forecasts rather than market capitalization. This means companies with better growth prospects get higher weights, regardless of their dividend history. This modern approach has delivered better total returns but sacrifices current yield.
Dividend Analysis
SCHD Dividend Profile
High current yield with steady growth. Traditional approach focuses on established dividend payers with strong financials.
DGRW Dividend Profile
Lower current yield but faster growth. Modern approach focuses on quality companies with growth potential, regardless of dividend history.
Sector Allocation
SCHD Sectors
DGRW Sectors
Top 5 Holdings
SCHD Top Holdings
DGRW Top Holdings
Investment Recommendation
💰 Choose SCHD If:
- Current income is your priority (3.27% yield)
- You want significantly lower costs (0.06% expense ratio)
- You prefer lower volatility (beta 0.85)
- Traditional dividend history matters to you
- You want better value exposure (P/E 15.2)
- You prefer established dividend payers
🚀 Choose DGRW If:
- Total return is your primary goal (12.5% 5-year)
- You want faster dividend growth (9.2%)
- Modern fundamental weighting appeals to you
- You want heavy technology exposure (28.5%)
- Dividend history is less important than quality
- You're willing to accept lower current yield