ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Schwab is known for offering low-cost, broad-based ETFs that serve both core portfolio holdings and specialized investment strategies. Their 33-fund lineup spans multiple asset classes including bonds, equities, international markets, digital assets, and factor-based strategies, with a notable emphasis on dividend-focused funds like SCHD alongside core index options. The issuer emphasizes accessibility for individual investors through competitive expense ratios and a diverse range of fund families designed to support various investment objectives.
See our curated list of related YouTube videos on SCHD.
Seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.
Asset class
Equity
Equity
Inception date
N/A
10/20/2011
Beta
0.62
0.58
Last dividend
$0.4800
$0.2525
Ex-dividend date
09/15/2026
06/24/2026
Bottom lineChoose ARCC if you want higher current income (10.02% vs 3.00% for SCHD). Choose SCHD if you want a quality-dividend tilt rather than the whole market.
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Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
ARCC has lagged SCHD over the trailing twelve months, posting a -4.94% total return against 31.06%. The lead holds up over 10 years too: SCHD has compounded at 12.79% a year, against 12.35% for ARCC. SCHD has been the steadier holding, though — annualized volatility of 13.2% against 17.8% for ARCC. Figures are total returns: price change plus every distribution reinvested.
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 5, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2011” measures every fund from October 20, 2011 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Quick verdict
ARCC (Ares Capital Corporation) is a business development company, while SCHD (Schwab U.S. Dividend Equity ETF) is an ETF — they take fundamentally different approaches.
ARCC offers the higher yield at 10.02% vs 3.00% for SCHD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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On a $10,000 investment, ARCC would generate roughly $83.50/month, while SCHD would produce $25.00/month, at current distribution rates. Both pay quarterly distributions.
ARCC yield10.02%
SCHD yield3.00%
Monthly diff on $10K$58.50
Cost & efficiency
SCHD charges a 0.06% expense ratio — roughly $60 over 10 years on $10,000 (simplified, not compounded). ARCC is a business development company, not a fund, so it charges no expense ratio.
SCHD ER0.06%
Strategy & risk
ARCC is a business development company, while SCHD tracks Dow Jones U.S. Dividend 100 Index. Beta is 0.62 for ARCC and 0.58 for SCHD, indicating SCHD is less volatile relative to the market.
ARCC beta0.62
SCHD beta0.58
Security details
ARCC (Ares Capital Corporation) is a business development company. SCHD is managed by Schwab (launched 10/20/2011) with $104B in assets.
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Frequently asked questions
What is the current distribution yield for ARCC and SCHD?
ARCC currently distributes 10.02% and SCHD 3.00%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is ARCC or SCHD better for dividend income?
It depends on your goals. ARCC currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between ARCC and SCHD?
ARCC (Ares Capital Corporation) is a business development company, while SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index. They are issued by Ares Management and Schwab respectively.
Can I hold both ARCC and SCHD?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Which has lower fees, ARCC or SCHD?
SCHD charges a 0.06% expense ratio. ARCC is a business development company, not a fund, so it has no expense ratio — owning it directly costs nothing in ongoing fund fees.
How much income does $10,000 in ARCC vs SCHD generate?
At current rates, $10,000 in ARCC would generate roughly $83.50 per month ($1,002.00 annually). The same in SCHD would produce about $25.00 per month ($300.00 annually).
Which has performed better historically, ARCC or SCHD?
ARCC has lagged SCHD over the trailing twelve months, posting a -4.94% total return against 31.06%. The lead holds up over 10 years too: SCHD has compounded at 12.79% a year, against 12.35% for ARCC. SCHD has been the steadier holding, though — annualized volatility of 13.2% against 17.8% for ARCC. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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