SCHD
Schwab U.S. Dividend Equity ETF
SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on high dividend yield with rigorous quality screens. Requires 10+ years of dividend payments and screens for financial health metrics.
NUSI
Nationwide Risk-Managed Income ETF
NUSI uses a Nasdaq 100 collar strategy: holds Nasdaq 100 stocks, sells covered calls for income, and buys puts for downside protection. Generates high monthly income with limited downside risk.
Key Metrics Comparison
| Metric | SCHD | NUSI | Winner |
|---|---|---|---|
| Distribution Yield | 3.27% | 9.25% | NUSI (+5.79%) |
| Expense Ratio | 0.06% | 0.68% | SCHD (-0.62%) |
| 5-Year Annual Return | 11.2% | 7.3% | SCHD (+3.9%) |
| Distribution Frequency | Quarterly | Monthly | NUSI |
| Number of Holdings | 104 | 103 | SCHD |
| Assets Under Management | $95.2B | $1.2B | SCHD |
| Max Drawdown (2022) | -14.2% | -8.5% | NUSI |
| Volatility (5-Year) | 15.2% | 12.8% | NUSI |
Performance Comparison
SCHD Performance
Superior total returns with capital appreciation. Quality-focused approach provides consistent growth through market cycles.
NUSI Performance
Higher income with downside protection. Collar strategy provides monthly income while limiting losses in downturns.
Strategy Analysis
SCHD Approach
Quality-focused dividend growth investing:
- Minimum 10 years of dividend payments
- Dividend yield > 2.5% requirement
- Cash flow to total debt > 50%
- Return on equity > 15%
- Market cap > $500 million
- Focus on financial health and stability
- Value-oriented, defensive sectors
- Full participation in market upside
NUSI Approach
Risk-managed Nasdaq 100 collar strategy:
- Holds Nasdaq 100 Index components
- Sells covered calls for premium income
- Buys protective puts for downside protection
- Creates defined-risk "collar" position
- Tech sector concentration (70%+)
- Monthly distributions to shareholders
- Caps upside (calls) and protects downside (puts)
- High income with reduced volatility
Risk Management Analysis
SCHD focuses on fundamental quality through financial screens (11.2% returns, 15.2% volatility), while NUSI uses options collars for mechanical protection (7.3% returns, 9.25% yield, 12.8% volatility). This represents the trade-off between growth-oriented quality (SCHD) vs income-focused protection (NUSI).
SCHD Risk Management
Quality screens: Financial health filters
Sector diversification: Healthcare, Financials, IT
Dividend cushion: 10+ years payment history
Full market participation: No caps on upside
NUSI Risk Management
Options collar: Systematic protection
Defined downside: Protective puts limit losses
Higher income: 9.25% yield cushions declines
Monthly distributions: Regular cash flow
Income Analysis
SCHD Income Profile
Dividend income with growth potential. Focus on sustainable dividends from financially healthy companies.
NUSI Income Profile
High monthly income from options premiums. Combines tech dividends with collar strategy income.
Sector Allocation
SCHD Sectors
NUSI Nasdaq 100 Sectors
Top 5 Holdings
SCHD Top Holdings
NUSI Top Holdings
Investment Recommendation
🛡️ Choose SCHD If:
- Total return growth is your priority (11.2% vs 7.3%)
- You prefer value/defensive sector exposure
- Lower expenses matter (0.06% vs 0.68%)
- Full market upside participation is important
- You want qualified dividend tax treatment
- Long-term compounding is your goal
- Financial health and quality screens provide comfort
- You're investing for the long term (5+ years)
🛡️ Choose NUSI If:
- High current income is a priority (9.25% yield)
- Downside protection is important to you
- You want monthly cash flow distributions
- Tech sector exposure with reduced risk appeals
- You're near or in retirement and need income
- You want defined risk with options collars
- Lower volatility during downturns matters
- You're comfortable with capped upside for protection