■ ETF · September 7, 2026
Comparing High-Yield and Dividend Growth ETFs: DIV, VIG, and SCHD
A look at three dividend ETFs with different strategies: high-yield DIV, dividend growth VIG, and balanced SCHD, and their performance.
Understanding Dividend ETF Strategies
Dividend-focused exchange-traded funds (ETFs) generally fall into two broad categories: those that prioritize high current income and those that emphasize consistent dividend growth. The Global X SuperDividend U.S. ETF (DIV) exemplifies the high-yield approach, while the Vanguard Dividend Appreciation ETF (VIG) represents the growth-oriented side.
DIV tracks an index of the 50 highest-yielding U.S. stocks, including real estate investment trusts (REITs), that have paid dividends for at least two years and meet certain volatility criteria. Its portfolio is equal-weighted, with notable holdings such as Tsakos Energy Navigation (yield 4.62%) and CBL & Associates (a REIT yielding 4.59%). The fund's 12-month distribution yield is 6.55%, paid monthly, and its expense ratio is 0.45%.
In contrast, VIG follows an index of companies that have increased their dividends for at least 10 consecutive years, excluding REITs. Top holdings include Broadcom, Microsoft, and Apple, which have dividend yields of 0.71%, 0.73%, and 0.33%, respectively, but have grown their payouts for 15, 21, and 13 years. VIG's distribution yield is just 1.48%, with a low expense ratio of 0.04%.
Performance Comparison
Over the past five years, DIV has delivered an average annualized total return of 6.4%, while VIG has returned 10.2% over the same period. The higher yield of DIV does not compensate for its lower capital appreciation, resulting in a lower total return.
An intermediate option is the Schwab U.S. Dividend Equity ETF (SCHD), which tracks an index of high-yielding stocks with at least 10 years of dividend payments and at least five years of dividend growth. Its top holdings are Merck, Amgen, and Abbott Labs. SCHD offers a distribution yield of 3.13% and has achieved a five-year average annualized total return of 10%, nearly matching VIG.
Key Differences at a Glance
- DIV: High yield (6.55%), lower total return (6.4% 5-yr), monthly payouts, includes REITs.
- VIG: Low yield (1.48%), higher total return (10.2% 5-yr), focuses on dividend growers.
- SCHD: Moderate yield (3.13%), strong total return (10% 5-yr), combines yield and growth.
What it means for income investors
These three ETFs illustrate the trade-off between current income and long-term growth. While DIV offers the highest yield, its total return lags behind VIG and SCHD. SCHD appears to balance yield and growth, making it a potentially attractive option for those seeking both income and appreciation, but individual goals and risk tolerance will determine the best fit.
Reporting based on: fool.com. Figures verified against market data where available.