Schwab U.S. Dividend Equity ETF offers a lower expense ratio and a higher dividend yield than iShares Core High Dividend ETF.
iShares Core High Dividend ETF achieved higher total return growth over five years but lagged on 1-year performance.
Both funds focus on defensive sectors like healthcare and energy with slightly different portfolio concentrations.
Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) offers a higher current yield and lower costs, while iShares Core High Dividend ETF (NYSEMKT:HDV) provides slightly lower volatility and a different concentration of energy giants.
Investors seeking income often gravitate toward these two stalwarts. While both target high-quality dividend payers, the Schwab fund tracks the Dow Jones U.S. Dividend 100 Index, while the iShares fund focuses on a tighter group of relatively high dividend-paying U.S. equities. Understanding their distinct sector tilts and risk profiles is essential for portfolio construction.
| Metric | SCHD | HDV |
|---|---|---|
| Issuer | Schwab | iShares |
| Expense ratio | 0.06% | 0.08% |
| 1-yr return (as of May 11, 2026) | 25% | 22% |
| Dividend yield | 3.30% | 2.90% |
| Beta | 0.70 | 0.56 |
| Assets under management (AUM) | $90.5 billion | $13.3 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost-conscious investors might prefer the 0.06% expense ratio of the Schwab fund, though the iShares fund is only marginally higher at 0.08%. The Schwab fund also offers a 0.40 percentage point advantage in trailing-12-month dividend yield over the iShares fund.
| Metric | SCHD | HDV |
|---|---|---|
| Max drawdown (5 yr) | (16.80%) | (15.40%) |
| Growth of $1,000 over 5 years (total return) | $1,510 | $1,659 |
The iShares fund provides exposure to around 75 holdings with a focus on onsumer Defensive at 24%, Energy at 22%, and Healthcare at 16%. Its largest positions include Exxon Mobil (NYSE:XOM) at 8.33%, Chevron (NYSE:CVX) at 6.26%, and Johnson & Johnson (NYSE:JNJ) at 5.58%. Launched in 2011, the iShares fund has a trailing-12-month dividend of $0.79 per share.
In contrast, the Schwab fund manages 103 holdings and was also launched in 2011. Its largest positions include Texas Instruments (NASDAQ:TXN) at 5.67%, Qualcomm (NASDAQ:QCOM) at 5.60%, and UnitedHealth (NYSE:UNH) at 5.10%. The Schwab fund’s primary sectors are Consumer Defensive at 20%, Healthcare at 19%, and Energy at 17%. It paid $1.06 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
Both SCHD and HDV go beyond simply chasing the highest-yielding stocks. Each applies a quality screen designed to filter out dividend traps before they land in the portfolio. That shared discipline separates them from less rigorous income funds and gives both a more defensive character than their yields alone might suggest.
Where they diverge is in what that screen prioritizes. SCHD evaluates companies on dividend growth, yield, and broader financial strength, a multifactor approach that has historically delivered stronger total returns alongside competitive income. HDV leans more heavily on current yield, concentrating in energy giants, consumer staples, and healthcare names that generate substantial cash today.
SCHD is significantly larger, slightly cheaper, and has built a loyal following among income investors since launching in 2011. HDV’s energy concentration gives it a different risk profile, one that can outperform when commodity prices surge but introduces sector sensitivity SCHD largely avoids. For investors who want dividend income with a long-term compounding orientation and a multifactor quality approach, SCHD is the stronger fit. HDV suits those who want a more defensively concentrated portfolio weighted toward energy and consumer staples, and who believe that sector mix will outperform in the future.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron, Qualcomm, and Texas Instruments. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group. The Motley Fool has a disclosure policy.
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