⚖️ SCHD vs DGRO Comparison · Free & No Signup

SCHD vs DGRO: High Yield vs Dividend Growth — Two Different Bets

SCHD screens for companies with strong dividend history and high yields. DGRO screens for consistent dividend growth. The income focus is similar — the methodology is different.

💰 SCHD is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict

🤝 BFF Take

SCHD Wins on Yield — DGRO Wins on Diversification and Growth Quality

SCHD (Schwab US Dividend Equity ETF) and DGRO (iShares Core Dividend Growth ETF) are both strong dividend ETFs but with distinct philosophies. SCHD holds 100 stocks screened for high dividend yield, cash flow strength, and consistent 10-year dividend history — it typically yields 3.5-4.0%. DGRO holds ~430 stocks with at least 5 consecutive years of dividend growth and payout ratios below 75% — it yields around 2.2-2.8%. SCHD is more concentrated and income-focused; DGRO is broader and tilts toward companies that grow their dividends consistently. SCHD has had stronger performance recently, but DGRO's quality screen and larger portfolio may offer more stability.

📋 Quick Takeaways

💵SCHD yields ~3.5-4.0%; DGRO yields ~2.2-2.8% — SCHD is the higher-income choice

📊SCHD holds 100 stocks; DGRO holds ~430 — DGRO is significantly more diversified

💰SCHD costs 0.06%; DGRO costs 0.08% — both very cheap, SCHD slightly lower fee

📊 Data-Based Take: SCHD has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

✓ Reviewed by a CFA® Charterholder · Data as of Jul 14, 2026 · Educational only, not financial advice

SCHD

Schwab U.S. Dividend Equity ETF

Expense Ratio

0.06% ✓

1-Year Return

+18.6%

AUM

$95.7B

Holdings

100

DGRO

iShares Core Dividend Growth ETF

Expense Ratio

0.08%

1-Year Return

+18.8%

AUM

$41.2B

Holdings

430

📋 SCHD vs DGRO — Key Facts Side by Side

Metric	SCHD	DGRO
Fund Name	Schwab U.S. Dividend Equity ETF	iShares Core Dividend Growth ETF
Issuer	Schwab	iShares
Tracks Index	Dow Jones US Dividend 100	Morningstar US Dividend Growth
Expense Ratio	0.06% ✓	0.08%
Cost per $10K/yr	$6.00	$8.00
AUM	$95.7B	$41.2B
Holdings	100	430
Inception	2011	2014
1-Year Return	+18.64%	+18.81%
3-Year Return	+14.60%	+17.55%
5-Year Return	+8.77%	+11.03%
Dividend Yield	3.30%	1.95%
Holdings Overlap	See holdings overlap →
Avg Bid-Ask Spread	0.00%	0.01%

Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 SCHD vs DGRO — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...

SCHD

want the lowest fees: saves ~$2/yr per $10K vs DGRO
want regular dividend income from quality dividend payers

Often fits investors who...

DGRO

want broader diversification (430 holdings vs 100)
want tech-heavy large-cap growth exposure via Morningstar US Dividend Growth

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Investment amount$ Years held Expected annual return%

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ SCHD vs DGRO — Frequently Asked Questions

What is the difference between SCHD and DGRO?

Both are dividend ETFs, but their screening criteria differ meaningfully. SCHD selects 100 stocks for high dividend yield and 10-year dividend payment history, then screens for quality metrics. DGRO selects ~430 stocks that have grown dividends for at least 5 consecutive years and have sustainable payout ratios. SCHD prioritizes current income with high yield; DGRO prioritizes consistent dividend growth with broader diversification.

Which ETF has higher dividend yield, SCHD or DGRO?

SCHD typically yields significantly more — around 3.5-4.0% — compared to DGRO's 2.2-2.8%. This is by design: SCHD screens specifically for high-yielding companies, while DGRO's dividend growth focus includes many companies that pay modest but growing dividends. If current income is your primary goal, SCHD delivers more cash today. If long-term dividend growth matters more, DGRO may be better.

Is SCHD or DGRO better for retirement income?

Depends on your stage and needs. Early in retirement or in accumulation phase, DGRO's dividend growth approach builds income over time. For those who need income now, SCHD's higher yield generates more cash. Many retirees hold both — SCHD for current income, DGRO for growing payouts that may keep pace with inflation over time.

How does SCHD compare to VIG (Vanguard Dividend Appreciation)?

VIG and DGRO are more similar to each other — both focus on dividend growth history. VIG requires 10+ years of consecutive dividend increases vs DGRO's 5 years. SCHD takes a different approach emphasizing yield alongside quality metrics. SCHD typically yields considerably more than VIG (3.5-4% vs VIG's ~1.8-2.2%) but holds fewer, more concentrated positions.

Can I hold both SCHD and DGRO?

Yes, and there's meaningful rationale. The two funds complement each other: SCHD provides higher current income from mature dividend payers; DGRO provides broader exposure to companies with strong dividend growth trajectories. Holding both reduces concentration risk and gives you a blend of income today and growing income over time. There is moderate overlap in holdings — companies like Johnson & Johnson and Home Depot appear in both.

New to ETF investing? See answers to the most common ETF questions →

📄 SCHD & DGRO Fact Sheets

SCHD Fact Sheet→ DGRO Fact Sheet→

ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.