iShares Core Dividend Growth ETF delivered 250% total returns vs SCHD’s 233% due to broader inclusion criteria.
iShares Core Dividend Growth ETF (DGRO) has returned 250% over the past decade, outperforming Schwab U.S. Dividend Equity ETF (SCHD) by 17 percentage points. The difference stems from DGRO’s looser dividend growth requirement, which allowed high-growth stocks like Apple and Broadcom to contribute earlier in their payout cycles.
SCHD’s stricter 10-year dividend history filter excluded these stocks for much of the period, limiting its exposure to their gains. DGRO’s 5-year growth screen, meanwhile, captured these companies sooner, boosting its performance despite a lower current yield of 2%.
For investors prioritizing immediate income, SCHD’s higher yield may still appeal, but DGRO’s long-term edge highlights the trade-off between yield and growth potential.