■ ETF · August 14, 2026
SCHD vs. HDV: Comparing Two Dividend ETFs
SCHD and HDV both target high-dividend U.S. stocks, but differ in concentration, sector weightings, and recent performance. Here's a factual comparison.
Fund Overview and Key Metrics
The Schwab U.S. Dividend Equity ETF (SCHD) and the iShares Core High Dividend ETF (HDV) are two popular choices for income-focused investors. Both funds invest in mature American companies that distribute a significant portion of earnings as dividends, offering a defensive tilt during market volatility.
SCHD, launched in 2011, tracks the Dow Jones U.S. Dividend 100 Index, selecting stocks with strong fundamental metrics. It holds 103 stocks, with top sector weights in healthcare (21.2%), consumer defensive (19.9%), and energy (15.0%). Its largest positions include Abbott Laboratories (4.7%), Amgen (4.4%), and Merck (4.4%).
HDV, also launched in 2011, tracks a benchmark of 75 high-dividend-yield U.S. companies. Its sector mix is similarly defensive: healthcare (24.0%), consumer defensive (23.7%), and energy (21.2%). Top holdings include ExxonMobil (7.9%), AbbVie (6.2%), and Chevron (6.1%).
Expense ratios are low for both: SCHD charges 0.06%, HDV 0.08%. SCHD's trailing-12-month dividend yield is slightly higher than HDV's.
Performance Comparison
Over the trailing 12 months, SCHD has delivered stronger total returns than HDV. However, over the past five years, HDV has outperformed SCHD, and it did so with less severe drawdowns, meaning a smoother ride for investors.
This divergence can be attributed to HDV's heavier concentration in energy and its smaller set of blue-chip holdings, which benefited from the recent energy sector performance. However, concentration cuts both ways: it can amplify losses in different market conditions.
It's worth noting that the difference in holdings count (75 vs. 103) is not as stark as comparing a 20-stock fund to a total-market index. Both funds are broadly diversified by ordinary standards, and sector weightings and top position sizes are more significant differentiators.
What it means for income investors
Both SCHD and HDV offer compelling options for dividend income, with low costs and diversified portfolios. Recent performance favors SCHD, while longer-term performance and volatility favor HDV. Investors may weigh these factors based on their own time horizon and risk tolerance.
Reporting based on: The Motley Fool. Figures verified against market data where available.