The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) delivers the highest yield among major dividend ETFs, largely due to its 26% allocation in real estate. However, SPYD's equal-weighted, yield-focused strategy reduces quality screening, increasing exposure to cyclical sectors and risks to dividend sustainability. The ETF is rated HOLD, recommended mainly for investors seeking high current income without existing real estate investment trust (REIT) exposure, while accepting potentially lower total returns. For broader diversification or higher quality, alternatives like SCHD and VYM are suggested at similar costs.
The SCHD ETF has returned just under 2% in the past month, outperforming the S&P 500 ETF (SPY) by nearly 1%. Year-to-date, about 30 SCHD holdings have more than doubled the returns of SPY, which has returned 9.8%. Additionally, 31 SCHD holdings are t...
The Schwab U.S. Dividend Equity ETF (SCHD) has gained 20% year-to-date, outperforming the S&P 500's 10% rise. SCHD focuses on large-cap companies with strong dividend histories and value metrics, avoiding mega-cap tech stocks that led recent market r...
