Key Points
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The Schwab U.S. Dividend Equity ETF (SCHD) offers a slightly lower expense ratio and stronger recent returns than the iShares Core High Dividend ETF (HDV).
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HDV maintains a modestly more concentrated portfolio, with 75 holdings compared to SCHD’s 103.
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Over the past five years, HDV has posted both stronger total returns and a less severe maximum drawdown than SCHD.
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Income-seeking investors often gravitate toward established dividend funds to balance long-term capital appreciation with steady quarterly cash flow. Both the Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) and the iShares Core High Dividend ETF (NYSEMKT:HDV) target mature American companies that pay out a significant portion of earnings to shareholders — a defensive tilt that can be especially valuable during stretches of market uncertainty.
Snapshot (cost & size)
MetricHDVSCHDIssueriSharesSchwabExpense ratio0.08%0.06%1-year return (as of Aug. 11, 2026)25.46%32.6%Dividend yield3.07%3.13%Beta0.300.56AUM$14.9 billion$104.2 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
With an expense ratio of 0.06%, SCHD is slightly cheaper than HDV, which charges 0.08%. SCHD also carries a slightly higher dividend yield.
Performance & risk comparison
MetricHDVSCHDMax drawdown (5 yr)(15.39%)(16.82%)Growth of $1,000 over 5 years (total return)$1,785$1,586
SCHD’s broader diversification has helped the fund post stronger returns over the last 12 months. But zoom out to a five-year view and the picture flips: HDV — with its narrower, more concentrated portfolio — has been the steadier ride and the better performer.
What’s inside
Launched in 2011, SCHD aims to track the total return of the Dow Jones U.S. Dividend 100 Index by screening for stocks with strong fundamental metrics relative to their peers. Its portfolio of 103 holdings leans most heavily toward healthcare (21.2%), consumer defensive (19.9%), and energy (15.0%). Its largest positions include Abbott Laboratories (NYSE:ABT) at 4.7%, Amgen (NASDAQ:AMGN) at 4.4%, and Merck (NYSE:MRK) at 4.4%.
HDV takes a more concentrated approach, tracking a benchmark of 75 U.S. companies with notably high dividend yields. Its sector mix skews similarly defensive, with healthcare (24.0%), consumer defensive (23.7%), and energy (21.2%) making up the bulk of the fund. Its largest positions include ExxonMobil (NYSE:XOM) at 7.9%, AbbVie (NYSE:ABBV) at 6.2%, and Chevron (NYSE:CVX) at 6.1%. HDV was launched in 2011.
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Which looks like the better buy
The honest answer is that both funds are strong options, and a dividend-seeking investor is unlikely to go wrong with either one.
For investors focused on the most recent year’s performance, SCHD’s modestly lower expense ratio, slightly higher yield, and stronger trailing-12-month return make it the more appealing choice. But investors with a longer time horizon may want to give HDV a closer look: its more concentrated lineup has actually outperformed SCHD over the past five years while doing so with less severe drawdowns — the combination of a better return with less pain along the way is hard to argue with, even at a slightly higher cost. These funds’ track records defy the usual logic that a cheaper, more diversified fund automatically wins over time.
That’s likely due to HDV’s sector weighting and timing more than anything structural. HDV’s heavier tilt toward energy and its concentration in a smaller set of blue chip payers meant it was positioned well for the stretch it just came through, but concentration also cuts both ways — it can just as easily amplify losses in a different environment. So while HDV’s five-year track record deserves credit, it isn’t necessarily proof that a narrower portfolio is the safer or more rewarding long-term bet.
It’s also worth keeping the “concentrated vs. diversified” framing in perspective. HDV’s 75 holdings versus SCHD’s 103 is only a 28-position gap — meaningful, but not the kind of stark contrast you’d see comparing a 20-stock fund to a total-market index with thousands of names. Both funds are still broadly diversified by ordinary standards, and when weighing the two, this difference shouldn’t be overemphasized. Sector weightings and top position sizes are more important differentiating factors.
SCHD still makes sense for investors who prioritize low costs, broad diversification, and strong recent momentum. HDV has earned a second look from investors willing to trade a bit of diversification for a fund that has, in this case, actually delivered both stronger long-term growth and a smoother ride. Neither result guarantees what will happen next, of course.
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Andy Gould has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, Amgen, Chevron, and Merck. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
