Need common and bankable dividends with out having to research and put money into shares? Contemplate ProShares S&P 500 Dividend Aristocrats ETF(NYSEMKT:NOBL) and Schwab U.S. Dividend Fairness ETF(NYSEMKT:SCHD). Each these exchange-traded funds goal dividend-focused U.S. shares, providing buyers a simple approach to achieve publicity to dividend shares. Nonetheless, the methodologies and holdings of those two ETFs create noticeable variations.
These two ETFs differ essentially the most when it comes to value, yield, and sector method, with SCHD providing decrease charges and a better dividend payout. NOBL tilts extra towards industrials however provides publicity to prime dividend progress shares. Traders evaluating these ETFs could need to weigh current returns, danger profiles, and sector exposures, in addition to headline metrics equivalent to value and yield earlier than deciding which one to purchase.
Metric
NOBL
SCHD
Issuer
ProShares
Schwab
Expense ratio
0.35%
0.06%
1-yr whole return (as of Dec. 31, 2025)
6.8%
4.3%
Dividend yield
2.2%
3.8%
AUM
$11.3 billion
$72.5 billion
Beta measures value volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents whole return over the trailing 12 months.
SCHD is extra reasonably priced with a 0.06% expense ratio in comparison with NOBL’s 0.35%, and it at present pays out a notably increased dividend yield, which can attraction to income-oriented buyers.
Metric
NOBL
SCHD
Max drawdown (5 y)
(17.91%)
(16.82%)
Development of $1,000 over 5 years
$1,308
$1,298
The Schwab U.S. Dividend Fairness ETF tracks a basket of 102 giant U.S. dividend shares, with a sector combine that skews towards vitality (19.3%), client staples (18.5%), and healthcare (16.1%). Its prime holdings embrace Bristol Myers Squibb (NYSE:BMY). Merck & Co(NYSE:MRK), and ConocoPhillips(NYSE:COP). The fund has a 14.2-year observe document, offering some historic perspective on its method and payout consistency.
The ProShares S&P 500 Dividend Aristocrats ETF, then again, focuses on S&P 500 corporations with at the very least 25 consecutive years of dividend progress, leading to a lineup of 70 shares. It leans most closely on industrials (22.4%), client defensive (22%), and monetary companies (12.4%). The biggest three positions embrace Albemarle(NYSE:ALB), Cardinal Well being(NYSE:CAH), and C.H. Robinson Worldwide(NASDAQ:CHRW).
Each funds keep away from leverage and different structural quirks, however the variations in sector weightings and choice guidelines could drive diverging efficiency over time.
For extra steerage on ETF investing, try the complete information at this hyperlink.
When you examine the Schwab U.S. Dividend Fairness ETF and the ProShares S&P 500 Dividend Aristocrats ETF when it comes to yields, SCHD pays a significantly increased yield of three.8%, simply beating the S&P 500 index’s yield of 1.2%. That is additionally as a result of SCHD tracks the Dow Jones U.S. Dividend 100 Index, which focuses on high-yield shares. The great factor is that SCHD additionally locations a powerful emphasis on dividend observe document and the monetary energy of the underlying corporations. SCHD is, due to this fact, a extremely sought-after and dependable ETF to personal to earn common dividend earnings.
NOBL, nevertheless, stands out for dividend progress because it invests solely in Dividend Aristocrats®. The time period Dividend Aristocrats® is a registered trademark of Customary & Poor’s Monetary Companies LLC, a subsidiary of the S&P 500 World (NYSE:SPGI), reflecting S&P 500 shares which have elevated their dividends for at the very least 25 consecutive years. Yield isn’t essential right here. An organization’s capability to not simply pay an everyday dividend however elevate it over time alongside money flows is what issues, and that, by default, makes NOBL an extremely secure dividend ETF to personal to earn some further earnings.
Each ETFs provide you with publicity to basically sturdy dividend shares and are wonderful additions to your portfolios in the event you’re an earnings investor. One issue, nevertheless, that would make a substantial distinction to returns over time is prices. On a $100 funding, you may be paying 35 cents yearly in prices to the fund supervisor of NOBL however solely six cents on SCHD. Its low charges (expense ratio) and excessive yield are the first the reason why SCHD has outperformed NOBL in the long run.
ETF: Trade-traded fund; a basket of securities traded on an change like a inventory. Expense ratio: Annual charge, expressed as a proportion of belongings, that covers a fund’s working prices. Dividend yield: Annual dividends paid by a fund or inventory, divided by its present value, proven as a proportion. Dividend Aristocrats: S&P 500 corporations which have elevated dividends for at the very least 25 consecutive years. Beta: A measure of an funding’s volatility in comparison with the general market, sometimes the S&P 500. AUM: Property below administration; the overall market worth of belongings a fund manages. Max drawdown: The biggest noticed proportion drop from a fund’s peak worth to its lowest level over a interval. Sector weighting: The proportion of a fund’s belongings allotted to particular business sectors. Client defensive: Corporations producing important items like meals, drinks, and family merchandise, much less delicate to financial cycles. Leverage: Using borrowed cash to extend potential funding returns, usually rising danger. Whole return: The funding’s value change plus all dividends and distributions, assuming these payouts are reinvested.
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Neha Chamaria has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Bristol Myers Squibb, Merck, ProShares S&P 500 Dividend Aristocrats ETF, and S&P World. The Motley Idiot recommends C.H. Robinson Worldwide and ConocoPhillips. The Motley Idiot has a disclosure coverage.
