DGRO vs SCHD: 10-Year Return Comparison Shows DGRO Ahead by 22%

Performance Overview

According to data from 24/7 Wall Street, the iShares Core Dividend Growth ETF (DGRO) delivered a total return of 257.35% over the ten years ending August 2026. In comparison, the Schwab US Dividend Equity ETF (SCHD) returned 235.33% over the same period. This results in a 22-percentage-point difference in cumulative returns.

The divergence in performance is attributed to differences in each fund's stock selection methodology. SCHD applies stricter criteria, requiring companies to have at least 10 consecutive years of dividend payments. This leads to a more concentrated portfolio that excludes some growth-oriented companies. DGRO, on the other hand, uses a broader approach, focusing on companies with a history of dividend growth but with less stringent requirements, allowing for greater diversification and inclusion of faster-growing firms.

Trade-offs in Fund Design

While DGRO's broader screen has historically produced higher total returns, it comes with trade-offs. DGRO's dividend yield is slightly lower than SCHD's, and its portfolio may experience more turnover due to its wider selection criteria. SCHD's stricter screen results in a higher yield but also introduces concentration risk, as the fund holds fewer stocks.

Investors evaluating these two ETFs must consider the balance between quality screening, concentration risk, and growth potential. The choice depends on individual preferences for yield versus total return, as well as tolerance for portfolio concentration.

Recent Context

In 2026, several international dividend ETFs, including Amplify CWP International Enhanced Dividend Income (IDVO), SPDR S&P International Dividend (DWX), and Vanguard International High Dividend Yield (VYMI), have outperformed SCHD. Additionally, in 2024, SCHD underwent a major index reshuffle that led to unusually high distributions, nearly tripling its typical quarterly payout. This resulted in significant tax liabilities for investors holding SCHD in taxable accounts.

For broader context, a $300,000 investment in the Vanguard High Dividend Yield ETF (VYM) ten years ago would have grown to approximately $922,110 with dividends reinvested, while the same amount in the S&P 500 would have reached roughly $1,063,230. VYM offers a lower yield around 2.2% and charges a 0.04% expense ratio.

The WisdomTree U.S. Total Dividend ETF (DTD) maintains a 'hold' rating due to its balanced mix of growth, value, and quality factors, offering stability and monthly distributions with a yield near 2%. However, it overlaps 57% with S&P 500 ETFs like IVV.

What it means for income investors

These figures illustrate that dividend-focused ETFs can vary significantly in long-term performance based on their screening criteria. DGRO's broader approach has historically delivered higher total returns, while SCHD's stricter screen offers a higher yield but with more concentration. Income investors may consider these trade-offs when evaluating their options.

Reporting based on: Pluang. Figures verified against market data where available.