SPYD vs. SCHD – SPDR Dividend ETF vs. Schwab Dividend ETF

Two popular dividend-focused ETFs are SPYD, the SPDR Portfolio S&P 500 High Dividend ETF, and SCHD, the Schwab U.S. Dividend Equity ETF. Let’s compare them.

// TIMESTAMPS:

00:00 - Intro
00:36 - Methodology, Factors, and Fees
02:26 - Sector Composition
02:46 - Performance
03:09 - Conclusion and Outro

// SUMMARY:

• SPYD and SCHD are two popular dividend-oriented ETFs from SPDR and Schwab, respectively.
• SPYD launched in 2015 and SCHD launched in 2011.
• SPYD costs a tiny bit more at 7 bps, while SCHD costs 6 bps.
• Both are very popular and have significant AUM, but SCHD is more popular than SPYD.
• SPYD captures the highest-yielding stocks in the S&P 500.
• SCHD looks for high-quality companies with a sustainable dividend via profitability screens.
• SPYD overweights Energy, Utilities, and REITs and all but excludes Industrials, Technology, and Consumer Cyclical stocks.
• SCHD overweights Financials, Industrials, and Consumer Staples, excludes REITs entirely, and nearly excludes Utilities.
• Since SPYD’s inception in 2015, SCHD has massively outperformed it on both a general and risk-adjusted basis.
• SPYD delivers greater exposure to the Size and Value equity risk factors. Profitability and Investment exposures are roughly equal between the two funds.
• SPYD has a higher yield at 3.99%, compared to 3.43% for SCHD.

#dividends #dividendinvesting #etf

// INVEST

// SOCIAL

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[mb]

Great information & delivery, man. I always find your videos helpful when I need quick reviews/education on relevant etfs ... and more. I'm a fan!

[stevenharris]

I have some SPYD and it isn't growing much, but the dividends are really good and I have been reinvesting since I bought. Its stable, and because I am close to retirement, I'm going to hold on to it. It is sooo crucial to reinvest and lots of people don't do it. But when I retire, I will start using the dividends. Great video!!!

[midnightsunc]

First? Hell yeah. Been watching for a while its always good to see more objective investing information on YouTube. It goes without saying that the last few years have been a overload of BUY THIS and SELL EVERYTHING NOW. I think this project has and will go on to provide great value to viewers and readers. Thanks man.

[EliaTheItalianGuy]

The best video I watched on the subject so far!
Thank you!

[moneymanfernando]

Thanks for the research. How about a combination of both???

[TJ-Stackin]

Great video brother 👍
Keep the great content coming. 👌

[projectndv]

Thank You for the video. Have you put out a video explaining why you do not favor dividend investing? I do both dividend and appreciation investing, but I am very open to hearing if one strategy is better in the long run.

[richardjohnson]

Just found your video and the Tag Line caught my eye. I liked your content. Not so in depth that it can't be understood, but better than a 10, 000 foot overview, too. Well done.
As MoneyManFernando asked, "Why not a combination of both?" I have SCHD for the combination of growth and income with the lower volatility. Yield of 3.64% on 5/8. I also have SPYD for the income; yielding 4.50% today. Neither are core holdings, but are significant enough to do me some good. And, as you pointed out, not too much overlap between the two funds.
Thanks and cheers

[brianadams]

I currently only have 2 funds in my portfolio which I just started SPYD and VYM but will be adding more in the near future.

[Ireshmadu]

This ETF may appeal to investors looking for higher dividend income, but it tends to be more sensitive to changes in interest rates and market conditions due to its concentrated exposure to high-yielding stocks.

[jthrw]

Great video, thank you for the information.

[ChrisakaPES]

I finally read your 8 reasons why I’m not a dividend income article and it was great definitely got my foot in the door, I’ll be more likely to return to the site again. I am amassing a very tiny percentage into SCHD and JEPI just to watch it with interest since my money’s on the line. But my main portfolio is currently set to split my equities between Value ETFs and Blend/general market ETFs and it feels like something I can reliably wait on and not panic with. Thanks for all the information, I appreciate your approach fits what I need for info and is interesting enough to just be enjoyable to kill some time!

[thejesser]

SPYD and SPLG. I own both. A great combination of dividends and growth. SPYD is only good for Income. SCHD has a combination of growth and dividends.

[JoeCoz]

Would you consider SCHD a large cap value fund? Seemed to better then VTV

[albiefromkellerwilliamslas]

I'm 50/50 on both etfs .... those are the only two high dividends that I own

[RB-jeyj]

Best way to make money!
Royalties
Rent
Interest
Dividends
These should be everyone's goals!

[killerrush]

sector bets, i thought he said SUCKER bets! LOL

[alexbradbury]

I've been considering buying ETFs/SCHD stocks for retirement, I have set asides $100k but somewhere along the line, I get cold feet maybe because I'm a rookie and have no idea what I'm doing, please I could really use some guideline

[jeremyk-metz]

I own 30 shares of SPYD. Unfortunately, it has underperformed. Been slowly investing in it over two years.

[philip]

What will happen to SCHD if Schwab goes bankrupt!