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Switching from DGRO to SCHD ETF at retirement can boost income, but tax impact varies by account type.

Market News
14 Oct 2026
24/7 Wall Street
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Bullish
Switching from DGRO to SCHD ETF at retirement can boost income, but tax impact varies by account type.

Investors holding iShares Core Dividend Growth ETF (DGRO) may benefit from switching to Schwab U.S. Dividend Equity ETF (SCHD) at retirement to increase income, as DGRO builds more wealth but pays less yield. The strategy works best inside tax-advantaged accounts like IRAs or 401(k)s, where switching boosts pre-tax income. However, in taxable accounts, capital gains taxes on selling DGRO can reduce or negate the income advantage, making it better to hold DGRO or sell gradually. This approach highlights how retirement planning should consider account types and tax effects when balancing growth and income from dividend ETFs.

As of Oct 14, 2026 22:51 WIB, SCHD trades at USD 33.54, closer to its 52-week high of USD 35.21, showing a 1-day gain of +0.51% on Pluang. In contrast, HDV is near its 52-week high at USD 29.34 with a +0.65% daily rise, while VYM trades at USD 158.41, below its 52-week peak of USD 167.03 and down 0.44% for the day. These price levels and recent moves highlight how dividend ETFs like SCHD and HDV are currently favored by buyers on Pluang, aligning with the article's focus on income strategies at retirement.

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