SCHD vs. DGRO: Comparing Dividend ETFs
In brief
SCHD uses dividend history and a four-factor fundamental ranking to build a concentrated U.S. dividend portfolio, while DGRO follows a broader dividend-growth benchmark with different eligibility and weighting rules; neither fund's distributions or returns are guaranteed.
- Published
- Last reviewed
The main idea
Compare SCHD and DGRO by their published index rules and resulting portfolio exposures, not by one current yield or recent return.
At a glance
SCHD benchmark
DJ U.S. Dividend 100
The index combines dividend-history requirements with fundamental ranking measures.
Schwab Asset Management ↗DGRO benchmark
Morningstar U.S. Dividend Growth
DGRO targets U.S. companies with a history of growing dividends.
iShares ↗Verified expenses
0.06% vs. 0.08%
Issuer expense ratios verified August 1, 2026.
Schwab Asset Management ↗SCHD applies a selective fundamental screen
SCHD tracks the Dow Jones U.S. Dividend 100 Index. The methodology screens for dividend history, size, liquidity, and yield, then ranks eligible companies using cash flow to debt, return on equity, dividend yield, and five-year dividend growth.
Those rules can produce persistent company, sector, valuation, and factor differences from both the broad market and other dividend indexes.
DGRO defines dividend growth differently
DGRO tracks the Morningstar U.S. Dividend Growth Index and is presented by iShares as exposure to U.S. stocks with a history of growing dividends. Its eligibility, exclusions, and weighting process are not the same as SCHD's four-factor ranking.
The word dividend appears in both strategies, but the benchmark documents—not the fund names—determine what each portfolio owns.
Sources: iSharesMorningstar Indexes
Income metrics require matching definitions
A 30-day SEC yield, trailing distribution rate, index yield, and dividend-growth rate measure different things. Compare the same metric on the same date and never treat a trailing payment as a promised future distribution.
Total return also includes price changes. A fund can distribute cash while producing a loss, and a lower-yielding portfolio can produce a higher total return over a given historical period.
Portfolio role matters more than a narrow fee gap
Schwab listed SCHD at 0.06% and iShares listed DGRO at 0.08% when reviewed. Holdings, concentration, taxes, turnover, and overlap can matter more than this two-basis-point difference.
Review both funds beside the investor's existing U.S. stock allocation. Neither supplies international stocks, bonds, or a complete retirement-income plan.
Before choosing a fund
Questions to verify
- Read both index methodologies.
- Compare current sector and company weights.
- Use matching yield definitions and dates.
- Check overlap with broad-market funds.
- Verify current expenses and distribution tax treatment.
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