In looking for a high-yield, low-cost, and diversified option to meet this need, your search may have led you to two of the most popular dividend ETFs on the market: DGRO vs SCHD.
DGRO is passively managed and tracks an index of US equities, meaning lower fees, higher tax efficiency, and better margins for investors than an actively managed equivalent.
At the time of writing, SCHD reports a dividend yield of 3.62%, as compared to DGRO’s 2.37%, giving the Schwab fund a significant edge in this category.
Fortunately for the average retail investor, both DGRO and SCHD are exchange-traded funds (ETFs). As such, they can operate with the diversification and potential of a traditional mutual fund but with the flexibility and maneuverability of a single stock.