These 3 Dividend ETFs Are Crushing the SCHD

"The was often seen as the gold standard among dividend exchange-traded funds. Today, Fidelity High Dividend ETF (NYSEARCA:FDVV), Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO), and Avantis International Small Cap Value ETF (NYSEARCA:AVDV) are worth looking into instead. SCHD used to give you a yield comfortably ahead of inflation, and it kept roughly on par with the S&P 500 if you kept reinvesting the dividends."

"The past few years have been rather rough for this ETF. It has deviated from its earlier trajectory and is actually down 2% year-to-date. SCHD is only a hair above zero when you take dividends into account, and it is an embarrassingly low return compared to its competitors. The has a lead of almost 18% year-to-date over the SCHD. I wouldn't toss out this YTD figure as a one-off. SCHD is compared to late-2021 prices."

"The Fidelity High Dividend ETF is a low-cost exchange-traded fund that passively tracks the Fidelity High Dividend Index. You get exposure to a portfolio of large-cap and mid-cap companies that are chosen for their ability to pay and keep raising above-average dividends. The ETF starts with the 1,000 largest U.S. and developed international stocks by market cap and then caps international exposure at 10%. It screens companies within each sector and prioritizes higher yields with sustainable payout ratios and high growth."

SCHD previously delivered yields ahead of inflation and matched the S&P 500 with reinvested dividends. Recent performance has faltered, leaving SCHD down about 2% year-to-date and only marginally positive after dividends. Competitors show stronger gains, with one fund nearly 18% ahead of SCHD since late-2021 prices. Recovery requires coordinated improvement across SCHD's underlying components, and clear signs of that recovery are absent. Diversifying into alternatives can reduce concentration risk. FDVV offers low-cost exposure to large- and mid-cap companies selected for sustainable above-average dividends, starting from the 1,000 largest U.S. and developed international stocks and capping international exposure at 10%. FDVV holds 121 stocks, yields 3.09%, charges a 0.16% expense ratio, and is up about 12% year-to-date with an 86.56% five-year price gain excluding dividends.

Read at 24/7 Wall St.