What is the main difference in expense ratios between DIVB and SCHD?

DIVB has an expense ratio of 0.05%, while SCHD's expense ratio is 0.06%. This means SCHD costs slightly more to operate, resulting in a 0.01 percentage point higher annual fee. For an investor, this small difference might seem insignificant, but over time, lower costs can compound, potentially leading to a modestly better net return.

How does the difference in expense ratios affect long-term returns?

A lower expense ratio means less of your investment is deducted as fees annually. Over long periods, this can lead to a meaningful difference in returns due to compounding. For example, a 0.05% fee compared to a 0.06% fee might seem small, but over 20 years, the total fees paid would be less for DIVB, assuming no other changes.

What does 'large value' mean in the context of these ETFs?

'Large value' refers to a category of stocks that are typically well-established companies trading at lower valuations relative to their earnings or assets. Both DIVB and SCHD fall into this category, meaning they invest in large-cap companies with attractive valuations. This approach can be more conservative and less volatile compared to growth-focused investments.

How do the dividend yields of DIVB and SCHD compare?

SCHD has a higher dividend yield of 3.11%, compared to DIVB's yield of 2.22%. This means that for every dollar invested, SCHD pays out more in dividends annually. However, a higher yield can also indicate that the market expects lower future growth or higher risk, so it's important to consider both yield and growth potential.

What are the top holdings of DIVB and SCHD, and how do they differ?

DIVB's top holdings include IBM, ADP, and ACN, while SCHD's top holdings are MRK, ABT, and AMGN. The funds do not share any top-10 holdings, indicating different investment strategies. DIVB focuses on technology and services, while SCHD leans towards healthcare and consumer staples, providing diversification across sectors.

How do the top holdings of DIVB and SCHD influence their risk profiles?

DIVB's top holdings, such as IBM and ADP, suggest exposure to technology and services, which can be sensitive to economic cycles and technological disruptions. SCHD's holdings in MRK and ABT indicate a focus on healthcare and consumer staples, which are generally more stable and less volatile, providing a potentially more defensive stance in market downturns.

What are the key considerations when choosing between DIVB and SCHD?

When choosing between DIVB and SCHD, consider factors like expense ratio, dividend yield, net assets, and track record. DIVB offers a lower expense ratio but has less net assets and a younger inception date. SCHD provides a higher dividend yield and a longer track record but comes with a slightly higher fee. Assess your investment goals, risk tolerance, and timeline to decide which fund aligns better with your portfolio strategy.

How does the size of the net assets impact DIVB and SCHD?

SCHD has $112.8 billion in net assets, significantly larger than DIVB's $2.0 billion. A larger fund can benefit from economies of scale, potentially leading to lower tracking errors and better liquidity. However, larger funds may also face more scrutiny and regulatory requirements. Smaller funds might be more nimble but have less resources and potentially higher operational costs.

How can beginners understand the impact of fees on ETF returns?

Fees, such as expense ratios, directly reduce your returns. A lower expense ratio means more of your investment grows. For instance, a 0.05% expense ratio on DIVB means you pay less in fees compared to a 0.06% expense ratio on SCHD. While the difference is small, it compounds over time, making a noticeable impact on long-term returns.

What is the significance of the inception date in choosing an ETF?

The inception date indicates how long the fund has been operating. SCHD was launched in 2011, giving it a longer track record compared to DIVB, which started in 2017. A longer track record can provide more historical performance data, which is valuable for assessing consistency and stability. However, past performance does not guarantee future results, and it's important to consider other factors like fees and holdings.

How do sector weights and top holdings affect ETF performance?

Sector weights and top holdings can significantly influence an ETF's performance. For example, if a sector is performing well, the ETF with more weight in that sector will likely benefit. The absence of sector weight data for DIVB and SCHD means their performance can be inferred from their top holdings. DIVB's tech-heavy holdings might react differently to market conditions compared to SCHD's healthcare and consumer staples focus.

DIVB vs SCHD

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

Compare the iShares Core Dividend ETF (DIVB) and US Dividend Equity ETF (Schwab) (SCHD) by examining fees, holdings, dividends and how each tracks the market. DIVB offers a 0.05% expense ratio and 2.22% yield, while SCHD features a 0.06% expense ratio and 3.11% yield. Explore their distinct top holdings and fund strategies. Educational content, not financial advice.

Compare the iShares Core Dividend ETF (DIVB) and US Dividend Equity ETF (Schwab) (SCHD) by examining fees, holdings, dividends and how each tracks the market. DIVB offers a 0.05% expense ratio and 2.2...

Fund Snapshot

Key Fund Metrics

DIVB

Metric

SCHD

0.05%

Expense Ratio

0.06%

2.22%

Dividend Yield

3.11%

$2.04B

Net Assets

$112.77B

384

Holdings

102

Nov 7, 2017

Inception Date

Oct 20, 2011

–

Index Tracked

–

Large Value

Fund Category

Large Value

DIVB costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

DIVB vs HDV

Compare DIVB and HDV on fees, holdings and dividends. DIVB costs 0.05% with 2.22% yield, while HDV charges 0.08% for 2.99%. Check net assets too.

DIVB vs VYM

Compare iShares Core Dividend ETF (DIVB) and Vanguard High Dividend Yield ETF (VYM) on fees, holdings, dividends, and tracking methods for large value options.

DIVB vs FDVV

Compare iShares Core Dividend ETF and Fidelity High Dividend ETF. Review 0.05% vs 0.15% fees, 2.22% vs 2.74% yields, holdings, and tracking data.

Investment Analysis

DIVB

Pros

iShares Core Dividend ETF offers a low expense ratio of 0.05%.
The iShares Core Dividend ETF holds 2.22%.
The iShares Core Dividend ETF tracks a large value category.

Considerations

The iShares Core Dividend ETF has smaller net assets of $2.0 billion.
The iShares Core Dividend ETF has a younger inception date of Nov 7, 2017.
The iShares Core Dividend ETF has a lower yield of 2.22%.

SCHD

Pros

The US Dividend Equity ETF Schwab has a higher dividend yield of 3.11%.
The US Dividend Equity ETF Schwab has substantial net assets of $112.8 billion.
The US Dividend Equity ETF Schwab has an older track record since Oct 20, 2011.

Considerations

The US Dividend Equity ETF Schwab has a slightly higher expense ratio of 0.06%.
The US Dividend Equity ETF Schwab's top holdings lack a shared sector weight profile.
The US Dividend Equity ETF Schwab is classified as large value with no sector breakdown.

Related Market Insights

Beyond Buybacks: The Smart Money's Guide to Shareholder-Friendly Stocks

Discover how top companies like Schwab and Berkshire Hathaway reward shareholders through strategic buybacks & dividends. Invest in shareholder-friendly stocks with Nemo.

Aimee Silverwood | Financial Analyst

27 July 2025

Read Insight

Dividend ETFs: The Smart Way to Collect Regular Income

Unlock steady income with Dividend ETFs. Explore diversified portfolios like DIV, DIVB, DWX, professionally managed & accessible via fractional shares on Nemo.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

Related Market Insights

Beyond Buybacks: The Smart Money's Guide to Shareholder-Friendly Stocks

Discover how top companies like Schwab and Berkshire Hathaway reward shareholders through strategic buybacks & dividends. Invest in shareholder-friendly stocks with Nemo.

Aimee Silverwood | Financial Analyst

27 July 2025

Read Insight

Dividend ETFs: The Smart Way to Collect Regular Income

Unlock steady income with Dividend ETFs. Explore diversified portfolios like DIV, DIVB, DWX, professionally managed & accessible via fractional shares on Nemo.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

About DIVB and SCHD

DIVB (DIVB)

iShares Core Dividend ETF (DIVB) is an exchange-traded fund that seeks to provide investors with exposure to a diversified portfolio of dividend-paying companies. It is designed for those looking for income and broad equity exposure in a single, tradeable instrument. The fund typically holds a mix of companies across sectors that historically pay dividends, aiming to smooth income streams compared with individual stocks. Investors should note that dividend payments are not guaranteed and can fluctuate with company earnings and economic conditions. As an ETF, DIVB offers intraday liquidity and may be more cost-effective and tax-efficient than holding multiple individual equities, though fees and tracking error can affect returns. Market capitalisation data for the ETF is not provided here. This summary is for general educational purposes only and is not personalised investment advice. Always consider your risk tolerance, investment horizon and seek independent advice if unsure, as values can rise or fall and past performance is not a reliable indicator of future results.

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.

Which Baskets Do They Appear In?

Beyond Buybacks: Companies Rewarding Investors

Charles Schwab's massive $20 billion stock buyback and dividend hike highlights a key indicator of corporate strength. This theme focuses on financially robust companies that are actively returning capital to their shareholders.

Published: 27 July 2025

Explore Basket

Dividend ETFs

These carefully selected ETFs regularly share their profits with you. Handpicked by our professional analysts, they offer a smart way to earn consistent income while investing across multiple companies at once.

Published: 11 May 2025

Explore Basket

Which Baskets Do They Appear In?

Beyond Buybacks: Companies Rewarding Investors

Charles Schwab's massive $20 billion stock buyback and dividend hike highlights a key indicator of corporate strength. This theme focuses on financially robust companies that are actively returning capital to their shareholders.

Published: 27 July 2025

Explore Basket

Dividend ETFs

These carefully selected ETFs regularly share their profits with you. Handpicked by our professional analysts, they offer a smart way to earn consistent income while investing across multiple companies at once.

Published: 11 May 2025

Explore Basket

DIVB vs SCHD

Fund Snapshot