HDV vs. SCHD: Which Dividend ETF Is Best?
Key Points
HDV charges a marginally higher expense ratio than SCHD but has outperformed over the past year.
SCHD offers a higher dividend yield and greater diversification across its 101 holdings.
Both funds tilt toward energy and consumer defensive sectors, but HDV concentrates more heavily in its top holdings.
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Both Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) and iShares Core High Dividend ETF (NYSEMKT:HDV) are designed to give investors access to U.S. companies with a track record of paying dividends, though they differ in methodology and market coverage. SCHD is lower-cost and more diversified, while HDV has delivered stronger recent returns with a greater sector concentration.
This comparison looks at their fees, performance, portfolio makeup, risk profile, and other key factors to help investors decide which may fit their goals.
Snapshot (cost & size)
| Metric | SCHD | HDV |
|---|---|---|
| Issuer | Schwab | iShares |
| Expense ratio | 0.06% | 0.08% |
| 1-yr return (as of 3/11/26) | 16.12% | 17.6% |
| Dividend yield | 3.4% | 2.93% |
| Beta | 0.65 | 0.42 |
| AUM | $83.7 billion | $13.2 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.
HDV charges a slightly higher fee than SCHD, though the gap is small. SCHD also offers a higher dividend yield, so cost-conscious income seekers may find it more affordable with a stronger payout profile.
Performance & risk comparison
| Metric | SCHD | HDV |
|---|---|---|
| Max drawdown (5 y) | -16.82% | -15.39% |
| Growth of $1,000 over 5 years | $1,294 | $1,430 |
What's inside
HDV tracks a basket of 74 high-dividend-paying U.S. stocks, with a notable tilt toward energy (27%) and consumer staples (27%) sectors, and a strong presence in healthcare (17%). Its top holdings — ExxonMobil, Chevron, and Johnson & Johnson — make up a sizable portion of the portfolio, reflecting a more concentrated approach. The fund has a 15-year track record, which may appeal to those seeking a longer operating history.
SCHD spreads its assets across 101 holdings, with greater diversification and sector allocations focused on energy (21%), consumer defensive (19%), and healthcare (16%). Its top positions — Lockheed Martin, ConocoPhillips, and Chevron — are each under 5% of assets, supporting a less concentrated risk profile. Both funds avoid leverage, currency hedging, or ESG overlays.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
SCHD’s lower expense ratio, higher dividend yield, and larger portfolio may appeal to investors. However, HDV boasts a slightly higher return over both one- and five-year periods and appears to be less volatile than SCHD. Both ETFs naturally hold stocks in more defensive market sectors like energy and consumer staples because companies in those sectors tend to pay high dividends. Yet SCHD’s more concentrated approach means its top holdings make up a greater percentage of its overall portfolio, which can work well when those companies are strong, but may hurt performance if they stumble.
Investing in dividend-paying stocks is a great way to establish some passive, reliable income for your portfolio, whether you choose to reinvest the money to buy more shares or cash it out to pay for other expenses or investments. Another bonus of dividend-paying stocks is that their underlying companies tend to be resilient investments regardless of market conditions, so they’re also a safe place to park your money if you’re worried about a market downturn.
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Sarah Sidlow has positions in Johnson & Johnson and Lockheed Martin. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends ConocoPhillips, Johnson & Johnson, Lockheed Martin, and Verizon Communications. The Motley Fool has a disclosure policy.
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