SCHD
Schwab U.S. Dividend Equity ETF
SCHD tracks the Dow Jones U.S. Dividend 100 Index, selecting companies based on dividend yield, payout ratio, cash flow, and dividend consistency. Requires 10+ years of dividend payments.
SDY
SPDR S&P Dividend ETF
SDY tracks the S&P High Yield Dividend Aristocrats Index, focusing on S&P Composite 1500 companies that have increased dividends for 20+ consecutive years. Equal-weighted portfolio.
Key Metrics Comparison
| Metric | SCHD | SDY | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 2.65% | SCHD (+0.81%) |
| Expense Ratio | 0.06% | 0.35% | SCHD |
| 5-Year Annual Return | 11.2% | 10.1% | SCHD (+1.1%) |
| Dividend Growth (5Y) | 8.5% | 7.9% | SCHD (+0.6%) |
| Minimum Dividend History | 10 Years | 20 Years | SDY |
| Number of Holdings | 104 | 121 | SDY |
| Assets Under Management | $95.2B | $18.5B | SCHD |
| Beta (5-Year) | 0.85 | 0.82 | SDY |
Performance Comparison
SCHD Performance
SCHD has consistently outperformed SDY with better total returns and higher dividend growth, despite SDY's longer dividend history requirements.
SDY Performance
SDY offers solid, consistent performance with slightly lower volatility. Its 20+ year requirement provides stability but may limit growth potential.
Selection Criteria Analysis
SCHD Criteria
Quality-focused approach with multiple financial metrics:
- Minimum 10 years of dividend payments
- Market capitalization > $500 million
- Cash flow to total debt > 50%
- Return on equity > 15%
- Dividend yield > 2.5%
- Five-year dividend growth considered
- Financial health and quality screens
SDY Criteria
Pure dividend longevity focus with equal weighting:
- Minimum 20+ consecutive years of dividend increases
- Must be in S&P Composite 1500 Index
- Equal-weighted portfolio construction
- No additional financial screens
- Quarterly rebalancing
- Focus on dividend consistency above all else
- Higher yield companies prioritized
Dividend Analysis
SCHD Dividend Profile
Higher current yield with quality growth focus. Financial screens help avoid yield traps while maintaining strong dividend growth.
SDY Dividend Profile
Moderate yield with maximum safety focus. 20+ year requirement ensures only the most reliable dividend payers are included.
Sector Allocation
SCHD Sectors
SDY Sectors
Top 5 Holdings
SCHD Top Holdings
SDY Top Holdings
SDY uses equal weighting (all holdings ~1%), SCHD uses market-cap weighting
Investment Recommendation
🏆 Choose SCHD If:
- You want significantly higher yield (3.27% vs 2.65%)
- Lower costs matter (0.06% vs 0.35% expense ratio)
- You prefer better historical performance
- Quality financial screens are important
- You want more technology exposure
- Total return is your primary goal
🛡️ Choose SDY If:
- Maximum dividend safety is your priority
- You prefer 20+ year dividend histories
- You want equal-weighted exposure
- Lower volatility is important (beta 0.82)
- You prefer financial and industrial sectors
- Dividend consistency matters more than growth