Schwab U.S. Dividend Equity ETF (SCHD) Offers Higher Yield and Lower Fees Than ProShares S&P 500 Dividend Aristocrats ETF (NOBL)

Both Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) and ProShares S&P 500 Dividend Aristocrats ETF (NYSEMKT:NOBL) offer exposure to U.S. dividend-paying stocks, but they take different approaches.

This side-by-side review compares their costs, performance, risk, and portfolio makeup to help clarify which may appeal to various investors.

Snapshot (cost & size)

Beta measures price volatility using available data.

SCHD is notably more affordable, charging less than one-fifth the annual expense ratio of NOBL.

It also delivers a higher payout, with a dividend yield nearly double that of NOBL (3.9% vs. 2.1%).

Performance & risk comparison

What's inside

Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index, holding 103 stocks in its 14th year (as of Nov. 3, 2025).

The portfolio leans toward Energy (20%), Consumer Defensive (19%), and Healthcare (16%).

Its largest positions include Cisco Systems (NASDAQ:CSCO), Amgen (NASDAQ:AMGN), and Abbvie (NYSE:ABBV).

The fund's wide sector mix and high number of holdings provide broad exposure across U.S. dividend payers.

ProShares S&P 500 Dividend Aristocrats ETF (NOBL), in contrast, invests in an index with sector caps and equal weighting.

It caps sector weights, resulting in a portfolio led by Consumer Defensive (23%), Industrials (20%), and Financial Services (13%).

Top positions include C.H. Robinson Worldwide (NASDAQ:CHRW), Cardinal Health (NYSE:CAH), and Caterpillar (NYSE:CAT).

NOBL's approach means a more focused, equally weighted basket and tighter sector boundaries.

For more guidance on ETF investing, check out the full guide at this link.

Foolish take

Since 2013, SCHD has generated total returns of 253% versus NOBL's mark of 216%.

Virtually all of this outperformance comes from the fact that SCHD pays a higher dividend yield than NOBL. In fact, if we only measure the price appreciation of each ETF, NOBL has delivered slightly better results -- but this doesn't account for dividend payments.

Furthermore, despite paying a dividend yield that is nearly double that of NOBL's, SCHD has grown its dividend payments by 10.4% annually over the last decade, compared to 8.6% for its lower-yielding peer.

Also slightly weighing down NOBL's returns are its 0.35% expense ratio, which is six times higher than that of SCHD's (although it is still a below-average fee).

Thanks to this dividend growth outperformance, higher yield, and outsized exposure to an energy sector that continues to boom amid the artificial intelligence and data center boom, SCHD and its low expense ratio look like a great selection for long-term, Foolish investors.

However, investors should keep in mind that both of these stocks may continue to lag the broader S&P 500 index as long as the growth stock bull market keeps ripping. It is important to temper our expectations for these dividend ETFs in comparison, as they'll more likely thrive in more challenging macroeconomic situations.

Glossary

ETF (Exchange-Traded Fund): A fund traded on stock exchanges that holds a basket of securities, like stocks or bonds.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges its investors.
Dividend yield: The annual dividend income paid by a fund or stock, expressed as a percentage of its current price.
Beta: A measure of a security's volatility compared to the overall market; values above 1 indicate higher volatility.
AUM (Assets Under Management): The total market value of all assets managed by a fund.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
Sector caps: Limits placed on the percentage of a fund's assets that can be invested in any single sector.
Equal weighting: A portfolio strategy where each holding is assigned the same weight, regardless of company size.
Index: A benchmark that tracks the performance of a group of securities, often used as a basis for funds.
Portfolio: The collection of investments held by a fund or an individual.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Amgen, Cisco Systems, and ProShares S&P 500 Dividend Aristocrats ETF. The Motley Fool recommends C.H. Robinson Worldwide. The Motley Fool has a disclosure policy.