The Schwab U.S. Dividend Equity ETF (AMEX:SCHD) is one of the most popular dividend ETFs available, and for good reason too. Launched on October 20, 2011, this passively managed exchange-traded fund is designed to provide a broad exposure to U.S. companies that have a track record of consistently paying dividends. Both of these ETFs have garnered the attention of investors for years.
Dividend Growth investing made sense for retirees when short-duration bonds yielded next to nothing and valuations were reasonable. SCHD offers investors an opportunity to participate in the growth potential of dividend-paying stocks while mitigating the risk associated with individual stock selection.
When comparing SCHD to similar ETFs, it's worth considering the Vanguard S&P 500 ETF (AMEX:VOO) and the Vanguard High Dividend Yield Index ETF (AMEX:VYM). These two ETFs, along with SCHD, are among the largest and most well-known options available in the market.