Key Points
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has a trailing 12-month dividend yield of 3%, significantly higher than the S&P 500. In contrast, the First Trust Rising Dividend Achievers ETF (NASDAQ: RDVY) has delivered an average annual total return of 15.8% over the past decade, outperforming SCHD’s 13.2% return. Both ETFs follow distinct strategies, with SCHD emphasizing quality and high-yielding dividends and RDVY focusing on growth-oriented companies.
SCHD’s portfolio includes major dividend stocks like Coca-Cola and PepsiCo, while RDVY features tech giants such as Meta Platforms and Nvidia, yielding only 0.8%. Investors seeking growth might prefer RDVY, whereas those looking for current income may find SCHD more appealing.
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