What do the expense ratios of DIV and SCHD reveal about their cost efficiency?

DIV has an expense ratio of 0.45%, which is moderate for a small-cap value ETF focusing on high yields, while SCHD has an expense ratio of 0.06%, which is exceptionally low and ideal for large-cap blue-chip dividend equity exposure. This fee difference means that over time, SCHD is significantly more cost-efficient for long-term dividend equity investors, allowing for greater net accumulation. However, if DIV's higher yield is achieved, the higher fee could be viewed as a justified trade-off for specific income strategies.

How do the net asset figures of DIV and SCHD compare, and what do they mean for investors?

DIV holds $783 million in net assets, while SCHD holds $112.8 billion. The enormous difference reflects SCHD's status as a large, highly liquid blue-chip fund. For investors, SCHD's assets imply high trading activity and tighter bid-ask spreads, leading to efficient execution. DIV's smaller size might limit its institutional trading volume, making the fund less liquid overall.

What do the inception dates of DIV and SCHD tell us about their market history?

SCHD was launched on 20 October 2011, while DIV launched on 11 March 2013. This means SCHD has a longer track record, offering approximately two extra years of market data, which can be important for assessing the fund's ability to weather different market cycles and maintain its index strategy. DIV, as a smaller fund with a shorter history, may have experienced less market volatility compared to SCHD.

What types of companies are the top holdings for DIV and SCHD, and how do they differ?

SCHD's top holdings consist of established blue-chip names like Merck (4.89%), AbbVie (4.48%), and Amgen (4.28%), reflecting a focus on large-cap value stocks. DIV's top holdings are small-cap value stocks such as TEN (3.64%), CBL (2.93%), and TIGO (2.84%). This difference in holdings indicates that DIV offers exposure to a different market segment with distinct risk-return characteristics, targeting higher yields through a more diversified but potentially riskier set of smaller companies.

How do the dividend yields of DIV and SCHD compare, and what does this mean for income?

DIV offers a significantly higher dividend yield of 6.52%, compared to SCHD's 3.11%. This means that for every £100 invested, DIV would generate £6.52 in annual income, while SCHD would generate £3.11. The higher yield in DIV reflects its focus on smaller companies, which generally offer more income but with greater volatility. SCHD's more conservative yield is consistent with its focus on blue-chip stocks and may be more sustainable during market downturns.

How do the categories 'Small Value' and 'Large Value' differ in terms of risk and return?

DIV is classified as 'Small Value', and SCHD as 'Large Value'. Small value funds like DIV offer higher returns but come with greater risk due to less stability and higher cost of capital. Large value funds like SCHD are generally more stable, lower-risk, and provide less potential for growth. SCHD's top holdings are large-cap blue-chip companies, which are well-suited for long-term growth. In contrast, DIV focuses on higher yield, which may appeal to investors looking for higher income.

Which fund is better suited for income-focused investors?

For income-focused investors, DIV is generally the more suitable option due to its higher dividend yield of 6.52%, compared to SCHD's 3.11%. Its small-cap focus provides a different investment approach that may not align with those looking for lower risk or blue-chip stability. The fund's lower expense ratio also contributes to its appeal, but it has a relatively short track record and lacks transparency regarding its index methodology. These factors should be carefully considered when comparing DIV and SCHD.

What sector exposure can we infer from DIV and SCHD's top holdings?

SCHD's top holdings include large-cap companies like Merck, AbbVie, and Amgen, suggesting a significant concentration in the healthcare sector, along with major exposure to energy (Chevron and ConocoPhillips), consumer staples (Coca-Cola, P&G), and telecom (Verizon). DIV's top holdings suggest exposure to sectors like energy (PAA and FLNG), shipping (GSL), and real estate (CBL). While detailed sector weights are not available, this top-ten list gives a sense of their respective market and sector biases.

What is the impact of index methodology transparency on these ETFs?

For both DIV and SCHD, the index methodology is not available. This lack of transparency can impact investors' ability to understand the selection criteria for stocks in the ETF. Knowing the methodology would help investors gauge how stocks are selected and weighted, which affects risk and return profiles. Without this information, investors rely on the fund's stated category and top holdings to infer the strategy. However, the high dividend yield of DIV is consistent with its stated focus on small-cap value stocks.

What is the overlap between the top holdings of DIV and SCHD?

There is no overlap between the top holdings of DIV and SCHD. DIV's top holdings include small-cap value stocks like TEN, CBL, and TIGO, while SCHD's top holdings include large-cap blue-chip names such as Merck, AbbVie, and Amgen. This clear distinction means that if an investor buys both funds, they will have exposure to very different segments of the US equity market, which could offer some diversification benefits in terms of company size and risk profile.

How might an investor decide between DIV and SCHD based on their financial goals?

An investor might choose SCHD for long-term dividend growth and lower risk due to its large-cap, blue-chip holdings, and low expense ratio. Alternatively, they might prefer DIV if they seek a higher current income from a smaller-cap, value-oriented portfolio. An investor focused on higher current income with a greater risk tolerance would find DIV more aligned with their goals. The choice depends on their specific income requirements and risk tolerance, rather than a single best option.

Does a higher dividend yield mean a better fund?

Not necessarily. While a higher dividend yield is attractive for income, it does not guarantee a fund's quality. DIV's higher yield may reflect higher risks from small-cap value stocks. A fund with a high yield might also have had its share price fall, pushing the yield up without improving dividend payments. Investors should consider total return and expense ratios. Educational content is provided for informational purposes only; it is not financial advice.

DIV vs SCHD

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

Compare the Global X SuperDividend US ETF (DIV) against the Schwab US Dividend Equity ETF (SCHD). This page reviews expense ratios, net assets, dividend yields, and top holdings to show how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

DIV

Metric

SCHD

0.45%

Expense Ratio

0.06%

6.52%

Dividend Yield

3.11%

$783.14M

Net Assets

$112.77B

Holdings

102

Mar 11, 2013

Inception Date

Oct 20, 2011

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Index Tracked

–

Small Value

Fund Category

Large Value

SCHD costs about $39.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

DIV

Pros

The fund offers a high distribution yield of 6.52% per cent, appealing to income-focused investors.
It provides exposure to small-cap value strategies, diversifying portfolios beyond large-cap holdings.
With net assets of $783 million, the fund maintains sufficient size for operational stability.

Considerations

The expense ratio of 0.45% per cent is relatively high compared to lower-cost dividend alternatives.
A track record of index methodology is not available, limiting transparency on the investment process.
The yield may reflect higher risk from small-cap value stocks rather than consistent dividend growth.

SCHD

Pros

An expense ratio of 0.06% per cent makes this fund highly cost-efficient for dividend equity exposure.
Net assets of $112.8 billion ensure exceptional liquidity and broad trading volume support.
Top holdings include large-cap value companies like MRK and ABT, providing exposure to established blue-chip names.

Considerations

The dividend yield of 3.11% per cent is lower than higher-income-focused alternatives.
Index methodology details are not available, which reduces transparency regarding the underlying selection criteria.
Top ten holdings are concentrated in sectors like healthcare and energy, potentially increasing sector-specific risk.

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About DIV and SCHD

DIV (DIV)

Global X SuperDividend US ETF (ticker: DIV) is an exchange-traded fund that seeks to provide income by investing in a portfolio of high-dividend-paying US companies. Managed by Global X, the fund typically selects stocks based on dividend yield and other criteria, aiming to deliver higher-than-average distribution income compared with broad US indices. Investors should know that higher yield can accompany greater concentration in specific sectors or smaller-cap firms, and dividend payments depend on underlying company distributions. As with any ETF, DIV trades intraday and its share price and distributions can fall as well as rise. This summary is for general educational purposes only and is not personal financial advice — suitability depends on individual goals, tax status and risk tolerance. Consider reviewing the fund’s prospectus, ongoing charges and liquidity before investing, and consult a regulated financial adviser to assess whether DIV fits your portfolio.

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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DIV vs SCHD

Fund Snapshot