Dividend ETF comparison: SCHD and DGRO, 2026which is better positioned for the rest of the year
SCHD focuses on high dividends and quality screening, while DGRO seeks dividend growth and broad diversification. SCHD outperformed DGRO year to date by 20percentage points, but the article says DGRO’s growth exposure is 2026more favorable for the rest of the year.
SCHD is an ETF made up of U.S. stocks selected for their high dividends. It applies quality screening to its holdings and invests in a group of stocks with relatively high dividend yields. Its portfolio is relatively concentrated.
DGRO is an ETF focused on dividend growth. Its broader diversification includes companies with the potential to increase their dividends. It has relatively high exposure to the technology sector.
SCHD outperformed DGRO year to date by 20percentage points. The article acknowledges this while explaining that DGRO’s growth exposure is 2026better aligned with market trends for the rest of the year. The performance gap and differences in portfolio characteristics are presented as criteria for choosing between them.
SCHD is structured for investors who prioritize dividend income. Its dividend-yield-focused selection affects performance and volatility. It has a large allocation to traditional industries with relatively stable dividends.
DGRO aims for a combination of dividend growth and capital appreciation. It includes growth sectors such as technology, which may offer greater upside when earnings improve. Its broad diversification means it has a different type of exposure to sector fluctuations.
The article suggested that investors compare dividend yields and growth exposure when making their choice. It concluded that investors should review each ETF’s investment philosophy and portfolio weightings.
Sources: The Motley Fool
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