The Mid-Cap Dividend ETF That's Been Quietly Beating Schwab's SCHD ETF Lately

"DON tracks a dividend-weighted index of mid-cap U.S. stocks, meaning companies are weighted by total dividends paid rather than market cap. The fund passes those dividends to shareholders monthly. With $3.8 billion in assets and a 0.38% expense ratio, it is a well-established vehicle with a 20-year track record dating to June 2006."

"DON's portfolio leans heavily on Financials at 22.3% and Industrials at 17.7%, with meaningful positions in Utilities and Energy. The largest single position sits at just 1.32%, spread across 300-plus names. That diversification is a genuine structural strength. No single company cutting its dividend meaningfully disrupts the fund's total payout."

"DON has paid monthly distributions without interruption since transitioning to a monthly schedule, with 19-plus years of uninterrupted payments including through the 2008 financial crisis and the 2020 pandemic selloff. Year-end special distributions have been a recurring feature, with the December 2025 special reaching $0.23369."

DON tracks a dividend-weighted index of mid-cap U.S. stocks, weighting companies by total dividends paid rather than market capitalization. The fund distributes dividends monthly and maintains $3.8 billion in assets with a 0.38% expense ratio. Its 2.4% dividend yield trails SCHD's 3.62%, but DON offers distinct mid-cap exposure and sector diversification. The portfolio concentrates in Financials (22.3%) and Industrials (17.7%), with the largest position at only 1.32% across 300-plus holdings. DON has maintained uninterrupted monthly distributions for 19+ years, including through the 2008 financial crisis and 2020 pandemic. Five-year returns reached 57.68% versus SCHD's 59.49%, while ten-year performance showed SCHD's 234.05% substantially outpacing DON's 153.73%.

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