How do the fees of SCHD and SDY compare?

SCHD charges 0.06% and SDY charges 0.35%. On $10,000 that is about $6 a year for SCHD and $35 for SDY, a difference of roughly $29 every year. Over a long holding period that gap compounds, so SDY's Aristocrat screen has to add value to justify the higher cost.

What index does each fund track?

SCHD tracks the Dow Jones U.S. Dividend 100, which screens for 10 years of dividend payments and ranks stocks on cash flow to debt, return on equity, yield and dividend growth. SDY tracks the S&P High Yield Dividend Aristocrats, which selects S&P Composite 1500 companies with at least 20 straight years of dividend increases and weights them by yield.

How much do SCHD and SDY overlap?

Two names appear in both top 10 lists: VZ, at 3.95% in SCHD and 3.22% in SDY, and CVX, at 4.25% and 2.08%. SCHD's other large positions include MRK, ABT, AMGN, KO and COP, while SDY's include ACN, O, PEP, MDT and TGT. The two funds hold noticeably different portfolios.

Which fund pays a higher dividend yield?

SCHD yields 3.12% and SDY yields 2.49%. SCHD's quality and yield screens tend to land on higher-paying large caps, while SDY's 20-year growth requirement includes many companies with steady but modest payouts. Both distribute dividends quarterly.

Which fund suits which goal?

SCHD suits investors who want a low-cost core dividend holding with a higher current yield and quality screens. SDY suits investors who place a premium on a long, unbroken record of dividend increases and are willing to pay more for that filter. Both focus on US companies.

How do size and liquidity compare?

SCHD is much larger at about $112.77 billion in net assets, compared with roughly $21 billion for SDY. Both are well-established funds with adequate liquidity for retail investors, and SDY has traded since November 2005, longer than SCHD's October 2011 launch. SCHD generally has tighter spreads.

How concentrated is each fund?

SCHD holds 102 stocks with the top 10 near 42%, led by MRK at 4.89%. SDY holds 158 stocks with the top 10 near 20%, led by VZ at 3.22%. SDY is the more evenly spread fund, so a single company's dividend cut or price drop has a smaller effect on its overall return.

Can I hold both SCHD and SDY?

Yes. With only two shared top-10 names, the two funds complement each other more than many dividend ETF pairs. Combining them blends SCHD's quality-and-yield approach with SDY's long dividend-growth track records. The blended fee is higher than SCHD alone because of SDY's 0.35% charge.

Are there tax or account differences?

Both are US-listed equity ETFs that pay quarterly dividends, so the income is taxable in most accounts and non-US investors may face withholding. SCHD's higher 3.12% yield means slightly more taxable distributions than SDY's 2.49%. Check how your account type and local rules treat US dividend income.

What does Dividend Aristocrat mean for SDY?

SDY's index requires each company to have raised its dividend every year for at least 20 consecutive years. That filter favors mature businesses with steady cash flow and drops any company that freezes or cuts its payout. It does not promise future increases, but it does screen for a long history of them.

SCHD vs SDY

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

SCHD tracks the Dow Jones US Dividend 100 with 102 holdings for a 0.06% expense ratio and yields 3.12%, while SDY tracks the S&P High Yield Dividend Aristocrats with 158 holdings for 0.35% and yields 2.49%. SCHD suits investors who want a low-cost quality dividend fund, and SDY suits those who want companies with at least 20 straight years of dividend increases. Educational content, not financial advice.

SCHD tracks the Dow Jones US Dividend 100 with 102 holdings for a 0.06% expense ratio and yields 3.12%, while SDY tracks the S&P High Yield Dividend Aristocrats with 158 holdings for 0.35% and yields ...

Fund Snapshot

Key Fund Metrics

SCHD

Metric

SDY

0.06%

Expense Ratio

0.35%

3.12%

Dividend Yield

2.49%

$112.77B

Net Assets

$21.00B

102

Holdings

158

Oct 20, 2011

Inception Date

Nov 8, 2005

Dow Jones U.S. Dividend 100

Index Tracked

S&P High Yield Dividend Aristocrats

Large Value

Fund Category

Mid-Cap Value

SCHD costs about $29.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SCHD	SDY
CVXChevron Corporation	4.25%	2.08%
VZVerizon Communications Inc.	3.95%	3.22%

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Investment Analysis

SCHD

Pros

Very low 0.06% expense ratio, about $29 less per $10,000 each year than SDY
Higher dividend yield at 3.12% versus 2.49% for SDY
Large fund at about $112.77 billion with deep liquidity

Considerations

Only 102 holdings with the top 10 making up about 42% of assets
Top names such as MRK, ABT and AMGN tilt the fund toward healthcare
Quality screens can drop a company after a single weak year

SDY

Pros

Requires at least 20 consecutive years of dividend increases for inclusion
Broader 158-stock portfolio with a more even top 10, led by VZ at 3.22%
Includes mid-cap dividend payers such as O, TGT and KVUE

Considerations

Expense ratio of 0.35% is nearly six times SCHD's 0.06%
Lower dividend yield at 2.49% compared with 3.12% for SCHD
Smaller fund at about $21 billion in net assets

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About SCHD and SDY

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.

SDY (SDY)

S&P Dividend SPDR (SDY) is an exchange-traded fund that aims to track the S&P High Yield Dividend Aristocrats Index — companies in the broader US market that have increased dividends for many consecutive years. It is designed for investors seeking income from equities rather than capital growth alone, often delivering a higher yield than broad-market ETFs. Holdings can be concentrated in sectors such as utilities, consumer staples and financials, and the fund typically rebalances periodically to maintain index eligibility. Investors should note that dividend payments and yields fluctuate, and capital values can fall as well as rise. Fees, tracking error and tax treatment affect net returns, so check current costs and distributions before investing. This information is general and educational only and not personalised financial advice; assess suitability for your goals and risk tolerance or consult a professional.

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SCHD vs SDY

Fund Snapshot