SCHD is a low-cost dividend ETF of quality U.S. companies that pays quarterly dividends and has delivered steady compounding. Two other ETFs have outperformed SCHD over the past three years by using recent market trends as tailwinds. JEPI delivers higher monthly income through active management, dividends from large-cap stocks, and premiums from selling call options, allocating roughly 80% to S&P 500 stocks and the remainder to equity-linked notes. VYM pays quarterly dividends and has produced stronger total returns. Holding both JEPI and VYM can provide more income and better performance than an equivalent position in SCHD over a three-year period.
Ask any dividend investor to name the first ticker that comes to mind, and odds are you will hear SCHD a lot. The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD ) is indeed a great pick. You get a low-cost basket of quality companies that have compounded steadily while showering investors with quarterly cash. However, there are other funds out there that have started to outperform it by using recent trends as tailwinds.
JEPI is the only monthly ETF on this list. Putting half the money here can get you more than what SCHD can get you. It is actively managed and provides monthly income through a combination of dividends from large-cap U.S. stocks and premiums from selling call options. JEPI invests around 80% in stocks from the S&P 500, with the remaining in equity-linked notes (ELNs) that provide exposure to written call options on the S&P 500 Index.
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