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.
PFM
Invesco Dividend Achievers ETF
PFM tracks the NASDAQ US Broad Dividend Achievers Index, focusing on companies with 10+ consecutive years of dividend increases. Offers broad diversification across market caps.
Key Metrics Comparison
| Metric | SCHD | PFM | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 2.15% | SCHD (+1.31%) |
| Expense Ratio | 0.06% | 0.52% | SCHD (-0.46%) |
| 5-Year Annual Return | 11.2% | 9.8% | SCHD (+1.4%) |
| Dividend Growth (5Y) | 8.5% | 7.9% | SCHD (+0.6%) |
| Number of Holdings | 104 | 324 | PFM |
| Assets Under Management | $95.2B | $1.8B | SCHD |
| P/E Ratio | 15.2 | 19.8 | SCHD |
| Beta (5-Year) | 0.85 | 0.92 | SCHD |
Performance Comparison
SCHD Performance
Higher total returns with better risk-adjusted performance. Quality-focused approach provides superior yield and lower volatility.
PFM Performance
Solid returns with exceptional dividend growth consistency. Broader diversification across market caps provides different risk profile.
Strategy Analysis
SCHD Approach
Quality-focused high-yield dividend growth:
- 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, large-cap focus
PFM Approach
Broad dividend achievers diversification:
- Minimum 10 years of consecutive dividend increases
- No minimum yield requirements
- Broad market cap diversification
- 324 holdings for maximum diversification
- Focus on dividend growth consistency
- Includes small and mid-cap companies
- Pure dividend growth focus
Yield vs Diversification Trade-off
SCHD focuses on high-yield quality screens (3.27% yield, 11.2% returns) with rigorous financial filters, while PFM focuses on broad dividend growth diversification (2.15% yield, 9.8% returns) across all market caps. This represents the trade-off between concentrated quality (SCHD) vs broad consistency (PFM).
Dividend Analysis
SCHD Dividend Profile
Higher current yield with quality growth. Focus on financially healthy companies with strong dividend histories.
PFM Dividend Profile
Lower current yield but proven growth consistency. Focus on companies with 10+ years of dividend increases.
Sector Allocation
SCHD Sectors
PFM Sectors
Top 5 Holdings
SCHD Top Holdings
PFM Top Holdings
Investment Recommendation
🎯 Choose SCHD If:
- Higher current income is important (3.27% vs 2.15%)
- You want better total returns (11.2% vs 9.8%)
- Lower expenses matter (0.06% vs 0.52%)
- Quality screens for financial health are valuable
- You prefer large-cap value exposure
- Lower volatility is a priority (beta 0.85 vs 0.92)
📊 Choose PFM If:
- Maximum diversification is your goal (324 holdings)
- You want all-cap exposure (large, mid, small)
- Pure dividend growth focus matters most
- You value 10+ years of dividend increases requirement
- Broader sector diversification is important
- You're comfortable with higher expense ratio