These 3 Monthly Dividend ETFs Are Quietly Beating SCHD

Core Viewpoint - Creating a stream of passive income through dividend stocks is essential for a comfortable retirement, leading many investors to consider dividend ETFs as a viable option [1]. Group 1: Dividend ETFs Overview - Dividend ETFs are preferred by many investors due to their professional management and diversification, with the Schwab US Dividend Equity ETF (SCHD) being one of the most popular options [2]. - The Amplify CWP Enhanced Dividend Income ETF (DIVO) is an actively managed ETF that combines dividend stocks with a covered call strategy, achieving a 5-year return of approximately 44.42%, outperforming SCHD's 32.63% [3][6]. Group 2: DIVO vs. SCHD - DIVO focuses on high-quality large-cap companies with historical dividend and earnings growth, while SCHD primarily holds stocks in the energy sector [4]. - DIVO's top holdings include major companies such as Caterpillar Inc, Apple, and American Express, with net assets around $5.2 billion [4]. - DIVO has a higher expense ratio of 0.56% compared to SCHD's 0.06%, reflecting its active management approach aimed at outperforming market indices [5]. Group 3: Other Competitors - The WisdomTree U.S. Total Dividend Fund (DTD) has posted a 5-year return of 68.96% and received a four-star Morningstar rating, indicating strong performance compared to both DIVO and SCHD [6]. - The SPDR Dow Jones Industrial Average ETF Trust (DIA) invests in 30 blue-chip stocks and has achieved a 5-year return of about 63.56%, with a year-to-date return of 13.91% and net assets of approximately $39.47 billion [7].