■ ETF · August 25, 2026
DHS ETF: A Monthly-Paying Dividend Fund with a Different Approach
WisdomTree U.S. High Dividend Fund (DHS) offers a 3.3% yield, pays monthly, and holds stocks that SCHD's strict criteria exclude, but its higher fee and smaller size are trade-offs.
DHS vs. SCHD: Different Strategies for Dividend Income
The Schwab U.S. Dividend Equity ETF (SCHD) has become a default choice for dividend investors, with over $111 billion in assets. Its low 0.06% expense ratio and focus on dividend growth and quality have driven its popularity. However, the WisdomTree U.S. High Dividend Fund (DHS) takes a different route, targeting high-dividend-yielding U.S. companies and paying distributions monthly. Despite launching in 2006, DHS holds only about $1.6 billion, making it a lesser-known alternative.
SCHD tracks the Dow Jones U.S. Dividend 100 Index, which requires companies to have at least 10 consecutive years of dividend payments, along with size and liquidity criteria. It then ranks by yield and incorporates cash flow to debt, return on equity, and five-year dividend growth. This screen excludes some high-yield stocks that lack the long payment history. DHS, on the other hand, is designed specifically to target high-dividend-yielding U.S. companies, putting more emphasis on current income rather than dividend growth or quality metrics.
Yield and Payment Frequency
As of the latest data, SCHD has a 30-day SEC yield of 3.27% and a trailing distribution yield of 2.98%. DHS's corresponding figures are 3.29% and 3.12%, respectively. The yield difference is minimal. However, DHS pays monthly, while SCHD pays quarterly. This frequency can be more convenient for retirees or those using dividends to cover regular expenses, as it provides 12 smaller payments instead of four larger ones.
Cost and Scale Considerations
DHS charges a 0.38% expense ratio, compared to SCHD's 0.06%. On a $100,000 investment, that translates to $380 annually for DHS versus $60 for SCHD, a difference of $320 per year. This cost gap is significant. Additionally, SCHD's asset base is nearly 70 times larger than DHS's, indicating a strong investor preference for SCHD's approach.
While DHS offers a distinct income-focused strategy with monthly payments, its higher fee and smaller size are important trade-offs. For investors prioritizing low costs and long-term dividend growth, SCHD remains a strong option. For those who value current income and monthly distributions, DHS provides an alternative that includes stocks SCHD might exclude.
What it means for income investors
DHS offers a higher current yield and monthly payments, but its higher expense ratio and smaller scale may offset these benefits. Investors seeking a low-cost, growth-oriented dividend fund may still prefer SCHD, while those focused on immediate income might find DHS's approach appealing.
Reporting based on: Yahoo Finance. Figures verified against market data where available.