SCHD vs HDV: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between SCHD and HDV

SCHD (Schwab U.S. Dividend Equity ETF) is a u.s. large-cap dividend fund managed by Charles Schwab. SCHD focuses on high-quality U.S. companies with strong track records of paying and growing dividends. It uses a rules-based approach to select about 100 stocks that have consistently paid dividends for at least 10 years. Beginners who want both income and growth often find SCHD attractive because it combines a solid dividend yield with quality stock selection at a very low cost.

HDV (iShares Core High Dividend ETF) is a high dividend fund managed by BlackRock. HDV tracks the Morningstar Dividend Yield Focus Index, which selects high-dividend U.S. stocks that also pass financial health screening based on Morningstar's proprietary analysis. This dual focus on yield and quality helps avoid dividend traps by filtering out companies with unsustainable payouts. The fund offers a quality-income approach at a very reasonable expense ratio.

The most notable differences are in fees (0.06% vs 0.08%), number of holdings (103 vs 75), and 5-year returns (12.10% vs 7.50%).

Holdings Overlap Analysis

SCHD and HDV share 43% of their top holdings. There is moderate overlap, so owning both provides some additional diversification but with diminishing returns.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $171 on a $10,000 investment. SCHD saves you more in fees over time.

Which One Should a Beginner Choose?

Choose SCHD if: You want income-focused investors who want a reliable and growing dividend stream, conservative investors who prefer lower volatility with quality companies, retirees or pre-retirees building a dividend income portfolio. It's managed by Charles Schwab with an expense ratio of 0.06%.

Choose HDV if: You want income investors who want quality screening to reduce the risk of dividend cuts, defensive portfolio positioning during uncertain economic environments, cost-conscious dividend investors who want high yield at a low expense ratio. It's managed by BlackRock with an expense ratio of 0.08%.

Can You Own Both SCHD and HDV?

Absolutely! With only 43% overlap, SCHD and HDV complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

Frequently Asked Questions