ETF Comparison

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

A head-to-head comparison of Schwab U.S. Dividend Equity ETF and NEOS S&P 500 High Income 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

NEOS

ETFs19

Total AUM$25.4B

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

NEOS is known for specializing in income-focused ETFs that employ option strategies and enhanced yield mechanisms across equities, fixed income, and alternative assets. The firm operates 19 funds organized around themes including covered call strategies (such as QQQH, SPYH, and QQQI), high-income equity products, hedged equity income, and enhanced fixed income solutions, with notable tickers covering broad market indices and technology-heavy benchmarks. NEOS distinguishes itself through a niche focus on yield enhancement and income generation across diverse asset classes, catering to investors seeking above-market distributions through systematic option writing and alternative income strategies.

See our curated list of related YouTube videos on SPYI.

See all NEOS ETFs

Side-by-side snapshot

	SCHD	SPYI
Full name	Schwab U.S. Dividend Equity ETF	NEOS S&P 500 High Income ETF
Issuer	Schwab	NEOS
Last Close	$32.04 as of May 20, 2026	$53.54 as of May 20, 2026
Distribution yield	3.25%	11.73%
Expense ratio	0.06%	0.68%
AUM	$91.1B	$9.2B
Distribution frequency	Quarterly	Monthly
Underlying index	Dow Jones U.S. Dividend 100 Index	S&P 500 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.	Seeks to generate high monthly income in a tax efficient manner while targeting equity appreciation.
Asset class	Equity	Equity
Inception date	10/20/2011	08/29/2022
Beta	0.61	0.69
Last dividend	$0.26	$0.53
Ex-dividend date	03/25/2026	04/22/2026

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Visual comparison

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 SPYI (NEOS S&P 500 High Income ETF) are both dividend ETFs, but they take different approaches.

SPYI offers the higher yield at 11.73% vs 3.25% for SCHD. 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 0.68%.

They track different benchmarks: SCHD is linked to Dow Jones U.S. Dividend 100 Index while SPYI tracks S&P 500 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 SPYI would produce $97.75/month, at current distribution rates.

SCHD yield3.25%

SPYI yield11.73%

Monthly diff on $10K$70.67

Cost & efficiency

Over 10 years on $10,000, SCHD would cost approximately $60 in fees vs $680 for SPYI (simplified, not compounded). The $620.00 difference may be offset by yield or performance.

SCHD ER0.06%

SPYI ER0.68%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index with a basket approach, while SPYI tracks S&P 500 Index using an options strategy. Beta is 0.61 for SCHD and 0.69 for SPYI, indicating SCHD is less volatile relative to the market.

SCHD beta0.61

SPYI beta0.69

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $91.1B in assets. SPYI is managed by NEOS (launched 08/29/2022) with $9.2B in assets.

SCHD AUM$91.1B

SPYI AUM$9.2B

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Frequently asked questions

Is SCHD or SPYI better for dividend income?

It depends on your goals. SPYI 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 SPYI?

SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index with a basket strategy, while SPYI (NEOS S&P 500 High Income ETF) tracks S&P 500 Index with an options approach. They are issued by Schwab and NEOS respectively.

Can I hold both SCHD and SPYI?

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 SPYI?

SCHD has an expense ratio of 0.06% while SPYI charges 0.68%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in SCHD would generate roughly $27.08 per month ($325.00 annually). The same in SPYI would produce about $97.75 per month ($1,173.00 annually).

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SCHD vs SPYI — at a glance

Generated April 2026 from current fund data.

Overview

SCHD and SPYI are both equity-focused ETFs designed to generate income from the S&P 500 and dividend-paying large caps, but they use fundamentally different mechanics. SCHD is a straightforward dividend-capture fund tracking the Dow Jones U.S. Dividend 100 Index with a 3.39% yield. SPYI overlays call options on the S&P 500 to generate outsized monthly income—its 12.24% distribution rate reflects premium income from selling upside, not underlying dividend growth.

How they differ

The core difference is strategy: SCHD holds high-dividend-yield stocks and earns through distributions; SPYI holds S&P 500 constituents and writes covered calls to capture option premium. This explains the yield gap: SCHD's 3.39% comes from dividends, while SPYI's 12.24% blends a tiny underlying SEC 30-day yield of 0.58% with call premium, which means a meaningful portion of distributions is likely return of capital rather than earnings. SCHD carries a minuscule 0.06% expense ratio compared to SPYI's 0.68%, and SCHD's $84.8 billion AUM dwarfs SPYI's $8.1 billion, suggesting structural stability. SPYI trades distributions monthly (more tax-reporting friction in non-retirement accounts) versus SCHD's quarterly schedule, and SPYI carries options risk—if the S&P 500 rallies hard, call caps limit upside participation.

Who each is best for

SCHD: Income-focused investors with a 5+ year horizon, moderate risk tolerance, and a preference for simpler mechanics. Tax-deferred accounts or taxable accounts where dividend tax rates are acceptable.

SPYI: Investors seeking aggressive monthly cash flow who are comfortable with capped upside, understand options mechanics, and hold the fund primarily in tax-advantaged accounts to avoid monthly 1099 reporting overhead.

Key risks to know

NAV erosion from return-of-capital distributions. SPYI's 12.24% yield significantly exceeds its 0.58% SEC yield, suggesting distributions rely partly on principal return rather than earnings. Over time, this may compress the share price unless underlying capital appreciation offsets it.

Call cap limits upside. SPYI's covered call strategy caps gains if the S&P 500 has a strong bull run. An investor holding SPYI during a +20% market year will not fully participate in those gains.

Concentration in large-cap dividend stocks. SCHD's focus on the highest-yielding 100 large-cap dividend payers concentrates exposure; economic deterioration affecting mature dividend-paying sectors could hurt both SCHD and SPYI, though SCHD's single-sector risk is higher.

Distribution frequency tax friction. SPYI's monthly distributions generate 12 tax documents annually (or more complexity for reinvestment) versus SCHD's four; this is immaterial in IRAs but creates bookkeeping drag in taxable accounts.

Bottom line

If you prioritize simplicity, low cost, and sustainable income from actual dividends, SCHD is the clearer choice. If you're willing to sacrifice some upside and accept return-of-capital distributions in exchange for dramatically higher current yield and monthly cash flow—and you hold it in a retirement account—SPYI offers that trade. Neither is inherently better; the fit depends on your income needs, time horizon, and account structure. Past performance doesn't predict future returns.

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