🤝 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.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
SCHD
Schwab US Dividend Equity ETF
DGRO
iShares Core Dividend Growth ETF
📋 SCHD vs DGRO — Key Facts Side by Side
| Metric |
SCHD |
DGRO |
| Fund Name |
Schwab US 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 |
$68B |
$33B |
| Holdings |
100 |
430 |
| Inception |
2011 |
2014 |
| 1-Year Return |
+12.80% |
+14.20% |
| 3-Year Return |
+9.20% |
+10.40% |
| 5-Year Return |
+12.40% |
+12.80% |
| Avg Bid-Ask Spread |
0.00% |
0.01% |
Data 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.
🎯 Should You Buy SCHD or DGRO?
Choose if...
SCHD
- You want the lowest fees — saves ~$2/yr per $10K vs DGRO
- You want regular dividend income from quality dividend payers
Choose if...
DGRO
- You want broader diversification (430 holdings vs 100)
- You want tech-heavy large-cap growth exposure via Morningstar US Dividend Growth
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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
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.