When it comes to investing in the stock market, dividend-focused exchange-traded funds (ETFs) have gained popularity among investors seeking regular income and long-term growth. While the Schwab U.S. Dividend Equity ETF (SCHD) is a popular choice, there are several other dividend ETFs that have been outperforming SCHD. In this blog post, we will highlight six dividend ETFs that have been crushing SCHD in terms of performance.
Vanguard Dividend Appreciation ETF (VIG)
VIG is known for its focus on companies with a history of consistently increasing dividends. This ETF tracks the performance of the NASDAQ US Dividend Achievers Select Index, which includes companies that have increased their dividends for at least 10 consecutive years. With its emphasis on quality companies, VIG has delivered impressive returns and consistently outperformed SCHD.
iShares Select Dividend ETF (DVY)
DVY is another dividend ETF that has shown exceptional performance. It tracks the Dow Jones U.S. Select Dividend Index, which includes high-yielding U.S. companies with a track record of consistently paying dividends. DVY has a tilt towards more mature, stable companies and has outperformed SCHD over the long term.
SPDR S&P Dividend ETF (SDY)
SDY is designed to track the performance of the S&P High Yield Dividend Aristocrats Index, which includes companies that have consistently increased dividends for at least 20 consecutive years. This ETF focuses on companies with a history of dividend growth, providing investors with a combination of income and capital appreciation potential. SDY has delivered solid returns and has been a top performer compared to SCHD.
iShares Core Dividend Growth ETF (DGRO)
DGRO aims to track the investment results of the Morningstar US Dividend Growth Index. This index includes companies with a track record of consistently increasing dividends. DGRO offers investors exposure to companies with the potential for dividend growth and has performed well relative to SCHD.
Schwab U.S. Dividend Equity ETF (SCHD)
While we are discussing ETFs that have outperformed SCHD, it is worth mentioning that SCHD remains a popular choice for dividend investors. It tracks the Dow Jones U.S. Dividend 100 Index and offers exposure to high-quality U.S. companies with a history of consistently paying dividends. Although other ETFs have surpassed SCHD in terms of performance, it still provides a solid option for investors seeking dividend income.
Invesco Dividend Achievers ETF (PFM)
PFM tracks the NASDAQ US Broad Dividend Achievers Index, which consists of companies that have increased dividends for at least 10 consecutive years. PFM provides exposure to companies with a history of dividend growth and has shown strong performance compared to SCHD.
It's important to note that past performance is not a guarantee of future results, and investing in the stock market involves risks. Before investing in any ETF, it's advisable to conduct thorough research and consider your investment objectives and risk tolerance.
In conclusion, while SCHD is a popular dividend ETF, there are several other dividend-focused ETFs that have been outperforming it. Vanguard Dividend Appreciation ETF (VIG), iShares Select Dividend ETF (DVY), SPDR S&P Dividend ETF (SDY), iShares Core Dividend Growth ETF (DGRO), Schwab U.S. Dividend Equity ETF (SCHD), and Invesco Dividend Achievers ETF (PFM) are among the top-performing dividend ETFs that investors can consider when seeking dividend income and long-term growth.
