How do the expense ratios of these two ETFs compare?

DGRW has an expense ratio of 0.28%, while SCHD's is lower at 0.06%. This 0.22 percentage point difference represents the annual cost each fund charges to manage assets. For investors comparing these funds, the expense ratio is a critical factor because it directly reduces net returns over time. A lower expense ratio generally means more money stays invested, potentially compounding growth. However, investors should also weigh this cost against other factors like strategy type and holdings, ensuring the fee aligns with their financial objectives and risk tolerance.

What does a dividend yield tell me about an ETF?

A dividend yield indicates the annual income from an ETF's distributions as a percentage of its price. For example, SCHD yields 3.11%, which provides more immediate income, whereas DGRW yields 1.22%. Higher yields often stem from mature companies in sectors like utilities or consumer staples, as seen with SCHD. Lower yields may suggest reinvestment for growth, typical of DGRW's approach. Understanding your income needs versus growth goals helps interpret which yield suits you best, balancing current cash flow with potential long-term appreciation.

What does it mean that an ETF is 'actively' vs 'passively' managed?

ETFs can be actively managed, where portfolio managers make specific decisions to beat the market, or passively managed, where the fund replicates an index. Neither DGRW nor SCHD explicitly states this in the provided data. However, WisdomTree's DGRW tracks a proprietary strategy emphasising quality and growth. SCHD, by Schwab, generally uses a transparent index methodology, focusing on companies with strong dividend histories. This distinction highlights different approaches to achieving similar outcomes. Investors should note that both aim to balance risk and reward, even if their methods differ.

What are the key differences in holdings between these two funds?

DGRW features top holdings like NVDA, MSFT, and AAPL, indicating a tilt toward technology-driven companies. In contrast, SCHD emphasises traditional blue-chip firms such as MRK, ABT, and KO, which are staples for dividend reliability. While both include KO, UNH, and HD, DGRW focuses on growth-oriented dividend payers, whereas SCHD highlights established names. This divergence shows how their strategies vary. Investors can analyse these holdings to understand each ETF's risk profile and potential performance based on sector strengths.

How do I determine which ETF is a better income investment for my needs?

To determine the better income investment, examine the ETF's dividend yield and holdings, as these reflect its focus on income-generating assets. For example, SCHD, with a yield of 3.11%, is likely to provide a stronger income stream. DGRW, with its 1.22% yield, focuses on growth-oriented dividends. Evaluate your need for current income versus growth. Higher yields may support immediate cash flow, while growth funds reinvest dividends for appreciation. Choose based on your goals, considering yield consistency and sector diversification.

What are the sector exposures of these ETFs?

Based on top holdings, DGRW appears to lean towards sectors like technology (NVDA, MSFT, AAPL) and consumer discretionary (HD), reflecting a growth-oriented dividend strategy. SCHD's holdings indicate significant exposure to healthcare (MRK, UNH) and energy (CVX), aligning more with traditional value investing. Exact sector weightings aren't provided, but these patterns show divergent investment theses. Consider sector diversification to balance growth and income potential. Evaluate if these allocations align with your risk tolerance and goals.

Why do the net assets of these two ETFs differ so significantly?

The disparity in net assets, DGRW's 17.0 billion versus SCHD's 112.8 billion, often results from factors like inception dates, marketing, and investor preferences. SCHD was established in 2011, giving it a longer time to gather capital. This scale typically enhances liquidity and potentially lowers trading costs. DGRW's smaller base might indicate more focused appeal. While asset size isn't a direct predictor of returns, it affects the ease of trading and fund stability. Investors weigh these aspects when selecting funds to align with their liquidity needs.

Why do these ETFs have different inception dates?

DGRW started in May 2013, while SCHD was launched in October 2011. The difference reflects varied launch timings and strategic goals. SCHD's earlier start gave it time to gain investor traction, resulting in higher net assets. DGRW's later inception suggests a more recent emphasis on growth dividend strategies. Inception dates affect performance history and asset base. A fund with an earlier start may have more extensive track records, aiding investors in evaluating consistency and resilience during market fluctuations.

How do economic downturns affect DGRW's and SCHD's strategies?

During economic downturns, ETFs can experience volatility based on holdings and strategies. DGRW, with its growth focus on tech (NVDA, MSFT), might face significant swings as growth stocks tend to be more volatile. Conversely, SCHD's traditional sectors such as healthcare and staples might offer resilience during market fluctuations, as these are often considered defensive. Both funds have dividend-focused strategies, which are less volatile than pure growth strategies but still influenced by economic conditions. Investors should consider their risk tolerance and how these funds align with their portfolio's defensive characteristics.

DGRW vs SCHD

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare WisdomTree US Quality Dividend Growth ETF (DGRW) with US Dividend Equity ETF Schwab (SCHD). This page contrasts their expense ratios (0.28% vs 0.06%), net assets, dividend yields and top holdings like KO, UNH and HD. Explore how each fund tracks its market to understand their differences. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

DGRW

Metric

SCHD

0.28%

Expense Ratio

0.06%

1.22%

Dividend Yield

3.11%

$16.96B

Net Assets

$112.77B

199

Holdings

102

May 22, 2013

Inception Date

Oct 20, 2011

–

Index Tracked

–

Large Blend

Fund Category

Large Value

SCHD costs about $22.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	DGRW	SCHD
KOThe Coca-Cola Company	3.05%	4.27%
UNHUnitedHealth Group Incorporated	2.59%	3.80%
HDThe Home Depot, Inc.	2.33%	3.69%

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Investment Analysis

DGRW

Pros

Tracks growth-oriented dividend strategies with low sector concentration
Moderate expense ratio of 0.28% balances cost against growth exposure
Diversified top holdings reduce single-stock risk significantly

Considerations

Lower 1.22% yield may disappoint income-focused investors
Smaller $17.0bn net assets might limit trading depth
Lacks transparent index methodology for consistent tracking

SCHD

Pros

High dividend yield of 3.11% offers strong income potential
Low expense ratio of 0.06% maximises net returns efficiently
Substantial $112.8bn net assets ensure exceptional liquidity

Considerations

Concentration in traditional sectors like healthcare and energy limits growth
Top holdings show high reliance on mature dividend-paying firms
Missing index methodology details may hinder transparency assessments

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About DGRW and SCHD

DGRW (DGRW)

The WisdomTree US Quality Dividend Growth ETF (DGRW) is designed to provide exposure to US companies that combine quality fundamentals with dividend growth potential. This fund focuses on firms with strong earnings and cash flow, aiming to capture total return through both capital appreciation and income. With a moderate expense ratio of 0.28%, it offers an accessible way to diversify across approximately 199 holdings. While the current dividend yield stands at 1.22%, the primary objective is not just immediate income but sustainable growth from established businesses. Investors should note that, like all equity investments, the value of shares can fall as well as rise, and past performance is not a reliable indicator of future results. This ETF suits those interested in long-term themes of quality investing within the US large-cap market.

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

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DGRW vs SCHD

Fund Snapshot