High-yield ETF SDIV pays strong dividends but erodes capital, unlike quality dividend ETF SCHD.

The Global X SuperDividend ETF (SDIV) offers a high 9.36% yield by investing in about 100 high-yield stocks globally without quality filters, providing steady monthly income but causing principal erosion over time. In contrast, the Schwab U.S. Dividend Equity ETF (SCHD) focuses on quality dividend growth stocks, delivering strong capital appreciation and rising dividends, aligning with Warren Buffett's investment preference. SDIV suits retirees needing immediate cash flow but risks losing real value, while SCHD offers long-term growth with lower yield. Investors must weigh steady income against potential capital loss when choosing between these strategies.