ETF Comparison

SCHD vs SDY: Which Is the Better Pick in 2026?

A head-to-head comparison of Schwab U.S. Dividend Equity ETF and SPDR S&P Dividend ETF covering yield, cost, risk, and income potential.

Data updated May 20, 2026

Schwab

ETFs16

Total AUM$446.3B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab is known for offering low-cost, broadly accessible ETFs designed for individual investors seeking simplicity and affordability. The company's focused lineup of two ETFs targets complementary investment strategies: SCHD emphasizes dividend income for conservative investors, while SCHG pursues growth opportunities for those seeking capital appreciation. Both funds reflect Schwab's commitment to minimizing fees and providing straightforward core portfolio holdings.

See our curated list of related YouTube videos on SCHD.

See all Schwab ETFs

State Street

ETFs42

Total AUM$1750.5B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street is one of the largest ETF providers globally and is known for its SPDR family of funds, which pioneered the modern ETF industry. The company's 17-fund lineup spans multiple strategies including broad market exposure (SPLG), dividend-focused income products (SPYD, SPYM), sector-specific funds (the Select Sector SPDR series), and specialized strategies like covered call income (Premium Income series) and portfolio construction tools (SPDR Portfolio). Notable for its extensive Select Sector SPDR offerings that track individual S&P 500 sectors and its focus on both traditional index investing and income-generating strategies, State Street serves investors across a wide range of investment objectives from core holdings to tactical income plays.

See our curated list of related YouTube videos on SDY.

See all State Street ETFs

Side-by-side snapshot

	SCHD	SDY
Full name	Schwab U.S. Dividend Equity ETF	SPDR S&P Dividend ETF
Issuer	Schwab	State Street
Last Close	$32.04 as of May 20, 2026	$147.81 as of May 20, 2026
Distribution yield	3.25%	2.44%
Expense ratio	0.06%	0.35%
AUM	$91.1B	$22.0B
Distribution frequency	Quarterly	Quarterly
Underlying index	Dow Jones U.S. Dividend 100 Index	S&P High Yield Dividend Aristocrats Index
Objective	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.	Dividend Income
Asset class	Equity	Equity
Inception date	10/20/2011	—
Beta	0.61	0.65
Last dividend	$0.26	$0.87
Ex-dividend date	03/25/2026	03/23/2026

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Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Quick verdict

SCHD (Schwab U.S. Dividend Equity ETF) and SDY (SPDR S&P Dividend ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.25% vs 2.44% for SDY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHD is cheaper with an expense ratio of 0.06% compared to 0.35%.

They track different benchmarks: SCHD is linked to Dow Jones U.S. Dividend 100 Index while SDY tracks S&P High Yield Dividend Aristocrats Index, which means their performance drivers differ.

SCHD is the larger fund by assets ($91.1B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SCHD would generate roughly $27.08/month, while SDY would produce $20.33/month, at current distribution rates. Both pay quarterly distributions.

SCHD yield3.25%

SDY yield2.44%

Monthly diff on $10K$6.75

Cost & efficiency

Over 10 years on $10,000, SCHD would cost approximately $60 in fees vs $350 for SDY (simplified, not compounded). The $290.00 difference may be offset by yield or performance.

SCHD ER0.06%

SDY ER0.35%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index with a basket approach, while SDY tracks S&P High Yield Dividend Aristocrats Index using a dividend income strategy. Beta is 0.61 for SCHD and 0.65 for SDY, indicating SCHD is less volatile relative to the market.

SCHD beta0.61

SDY beta0.65

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $91.1B in assets. SDY is managed by State Street (launched —) with $22.0B in assets.

SCHD AUM$91.1B

SDY AUM$22.0B

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Frequently asked questions

Is SCHD or SDY better for dividend income?

It depends on your goals. SCHD 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 SCHD and SDY?

SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index with a basket strategy, while SDY (SPDR S&P Dividend ETF) tracks S&P High Yield Dividend Aristocrats Index with a dividend income approach. They are issued by Schwab and State Street respectively.

Can I hold both SCHD and SDY?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, SCHD or SDY?

SCHD has an expense ratio of 0.06% while SDY charges 0.35%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SCHD vs SDY generate?

At current rates, $10,000 in SCHD would generate roughly $27.08 per month ($325.00 annually). The same in SDY would produce about $20.33 per month ($244.00 annually).

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SCHD vs SDY — at a glance

Generated April 2026 from current fund data.

Overview

SCHD and SDY are both dividend-focused equity ETFs tracking U.S. large-cap stocks, but they differ meaningfully in selection criteria and yield profile. SCHD targets 100 high-dividend-yielding stocks with consistent payment histories and financial strength, while SDY focuses on 60 "Dividend Aristocrats"—companies with at least 25 years of consecutive dividend increases. The result is a yield difference of nearly 100 basis points, driven by SCHD's emphasis on current income versus SDY's preference for dividend growth pedigree.

How they differ

The biggest distinction is index philosophy: SCHD prioritizes current yield and fundamental quality across a broader 100-stock universe, while SDY narrows to 60 proven dividend-growth companies with unbroken 25-year track records. SCHD yields 3.39% versus SDY's 2.46%—a material 93-basis-point spread reflecting SCHD's tilt toward higher-paying names. Cost-wise, SCHD charges 0.06% in fees compared to SDY's 0.35%, a 29-basis-point gap that compounds over time. SCHD also carries lower beta (0.66 vs. 0.73), suggesting less stock-market sensitivity, though both tracked within a modest range over the past 52 weeks. SCHD's $84.8 billion in assets dwarfs SDY's $20.7 billion, reflecting its broader appeal and lower-cost positioning.

Who each is best for

SCHD: Income-focused investors who prioritize current yield and want minimal fees; well-suited for taxable accounts seeking high dividend income, and those comfortable with somewhat lower growth expectations given the higher current distribution.

SDY: Investors who value a track record of consecutive dividend increases and don't mind lower current yield in exchange for lower volatility and stronger historical earnings-growth alignment; good for dividend-growth portfolios and those aiming to hold for 10+ years.

Key risks to know

Yield sustainability in SCHD. A 3.39% yield on a fund with modest 0.66 beta suggests reliance on higher-yielding sectors (utilities, REITs, energy) with cyclical exposure; if those sectors underperform or cut dividends, NAV could face pressure.

Concentration in aristocrats. SDY's 60-stock universe weighted toward long-established blue-chip names (utilities, staples, healthcare) creates sector concentration risk; mature dividend-payers may face slower earnings growth in inflationary environments.

Fee impact on SCHD income appeal. While 0.06% is low, SDY's higher fee (0.35%) compounds against a lower yield; the spread widens for longer holding periods, favoring SCHD's cost efficiency.

Beta divergence in downturns. SDY's slightly higher beta (0.73) and aristocrat focus may offer defensive characteristics, but SCHD's 0.66 beta could reflect higher exposure to lower-volatility dividend sectors, which may lag in risk-on rallies.

Bottom line

If you want maximum current income with minimal fees, SCHD's 3.39% yield and 0.06% expense ratio stand out for monthly-or-quarterly spending needs. If you prioritize stability and a proven 25-year dividend-growth track record over peak yield, SDY's aristocrat positioning and lower beta offer a different risk-return tradeoff. Neither is "better"—they address different priorities. Past distribution rates don't guarantee future payouts.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.