The 4 Dividend ETFs That Are Absolutely Destroying SCHD in 2025 🚀
For years, SCHD was treated like royalty.
Safe. Reliable. Untouchable.
The default choice for dividend investors worldwide.
But what if I told you that in 2025, SCHD isn’t just underperforming —
it’s being left in the dust?
While SCHD investors are celebrating single-digit gains of just 2–4%, four dividend ETFs are quietly delivering double-digit returns — and Wall Street is starting to notice.
We’re talking about a difference so large that a $100,000 investment could mean over $12,000 more in returns.
This isn’t noise.
This is a dividend revolution.
Let’s break down the 4 dividend ETFs that are beating SCHD — and why 2025 may have changed dividend investing forever.
📉 The Fall of a Dividend Giant
SCHD has dominated dividend portfolios for years.
Advisors loved it. YouTubers praised it. Retail investors poured in billions.
But 2025 exposed a critical weakness.
SCHD’s strategy worked perfectly in a rising-rate world.
Unfortunately, the world changed.
When the Federal Reserve started cutting interest rates in late 2025, the market sent a clear message:
💡 Dividend growth matters more than high yield.
And SCHD wasn’t ready.
🏆 The New Dividend Champions of 2025
1️⃣ Vanguard Dividend Appreciation ETF (VIG)
2025 Return: ~16.26% 💥
VIG isn’t chasing high yield.
Instead, it focuses on dividend aristocrats — companies that have increased dividends for 10+ consecutive years.
Why this matters:
Dividend growth beats static income over time
Strong balance sheets survive recessions
Compounding does the heavy lifting
With a rock-bottom 0.05% expense ratio and nearly $100B+ in assets, VIG is built for long-term wealth builders.
📌 Low yield today (≈1.7%), but massive growth potential tomorrow.
2️⃣ iShares Core Dividend Growth ETF (DGRO)
2025 Return: ~11.75%
DGRO takes a smart, balanced approach:
Minimum 5 years of dividend growth
Payout ratio capped at 75%
Exposure to modern leaders like Apple, Broadcom & JPMorgan
Unlike SCHD, DGRO isn’t afraid of technology and financial growth stocks.
The result?
Solid income
Strong capital appreciation
Better adaptability in today’s economy
📌 A perfect middle ground between income and growth.
3️⃣ Vanguard High Dividend Yield ETF (VYM)
2025 Return: ~11.18%
VYM proves that diversification still wins.
With over 500+ holdings, it spreads risk across:
Financials
Technology
Healthcare
Consumer staples
As sectors rotated throughout 2025, VYM captured gains everywhere — something SCHD simply couldn’t do.
📌 Not flashy, but incredibly resilient.
4️⃣ Fidelity High Dividend ETF (FDVV)
2025 Return: ~10.5% ⚡
The wild card.
FDVV shocked traditional investors by allocating 25%+ to technology stocks — including Apple, Microsoft, and Nvidia.
Risky? Yes.
Rewarding? Absolutely.
This ETF bets on the idea that today’s tech giants are tomorrow’s dividend aristocrats.
📌 Higher volatility, higher potential upside.
🧠 Why SCHD Is Struggling in 2025
The key event?
📉 Federal Reserve rate cuts (4.00–4.25%)
When rates fell:
Investors stopped chasing yield
Dividend growth became king
Tech & financials regained leadership
SCHD stayed stuck in defensive, slow-growth sectors — while the market moved on.
⚠️ Before You Switch — Know the Risks
No ETF is perfect.
VIG: Low current income (not ideal for retirees)
DGRO: Tech exposure can hurt if markets rotate defensive
VYM: Heavy financial exposure = rate sensitivity
FDVV: Higher fees, tech volatility, recent dividend cut
And the biggest risk of all?
👉 This could be a temporary rotation, not a permanent shift.
If rates rise again, SCHD may reclaim its crown.
🏁 Final Verdict: Which Dividend Investor Are You?
🔹 Long-term dividend growth → VIG
🔹 Balanced income + growth → DGRO
🔹 Stability & diversification → VYM
🔹 High risk, high reward → FDVV
🔹 Conservative & defensive → SCHD
There’s no “best” ETF — only the one that fits your strategy.
🚀 Want to Invest in These ETFs Easily?
If you’re ready to buy US Dividend ETFs like VIG, DGRO, VYM or FDVV,
one of the easiest platforms to start is moomoo 👇
👉 Open a moomoo account here:
🔗 https://j.moomoo.com/0xFRE4
✅ Low trading fees
✅ Real-time US market data
✅ Beginner-friendly interface
✅ Perfect for ETF investors
💡 Start small, invest consistently, and let dividends work for you.
💬 What do YOU think?
Is SCHD still worth holding in 2025 — or are you switching to one of these new dividend champions?
Drop your thoughts below 👇
And if this article helped you, share it with a fellow investor 📈🔥
⚠️ Disclaimer: This content is for educational purposes only. Past performance does not guarantee future results. Always do your own research or consult a licensed financial adviser before investing.
