SCHD Isn't the Only Option - 3 Monthly ETFs With Better Long-Term Gains

"Other ETFs have outperformed it, and some have done so while paying higher yields. Diversifying into these ETFs is a good idea just in case the index SCHD tracks (Dow Jones U.S. Dividend 100 Index) underperforms. It is also an even better idea to look into monthly dividend ETFs. These ETFs compound faster and are more convenient if you want to compound your holdings over decades or get paid more frequently if you are retired."

"Amplify CWP Enhanced Dividend Income ETF (DIVO) has a portfolio of ~20-25 holdings that have a long track record of growing earnings and dividends. It invests at least 80% of its assets in dividend stocks and uses a tactical covered call strategy to opportunistically sell call options on dividend holdings. This lets the fund generate more dividends than it otherwise would without putting an overly restrictive cap on the upside potential. This approach aims to deliver gross annual income of roughly 2-3% from dividends and 2-4% from options."

"DIVO has returned 108.25% over the past 10 years . That's 8.72% per year, compared to 85.76% overall for the SCHD and 7.31% per year. The gap has widened more recently. DIVO yields 4.73% and pays monthly, whereas SCHD yields 3.82% and pays quarterly. The total expense ratio is slightly on the higher end at 0.56%, or $56 per $10,000."

SCHD is often seen as the gold standard for dividend ETFs because very few ETFs consistently outperform it over the long term. Other dividend ETFs have outperformed SCHD and some pay higher yields. Diversifying into alternative dividend ETFs hedges against potential underperformance of the Dow Jones U.S. Dividend 100 Index that SCHD tracks. Monthly dividend ETFs compound faster and provide more frequent income for retirees or long-term compounding. Amplify CWP Enhanced Dividend Income ETF (DIVO) holds ~20–25 dividend growers, invests at least 80% in dividend stocks, and uses covered calls to generate additional income. DIVO has outperformed SCHD over ten years, yields 4.73%, pays monthly, and charges a 0.56% expense ratio.

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