The Best High-Yield ETF to Buy for 2026: SCHD or HDV?

Core Insights - The iShares Core High Dividend ETF (HDV) and Schwab U.S. Dividend Equity ETF (SCHD) target U.S. companies with strong dividend profiles but differ in strategies and results, particularly in recent returns, dividend yield, and portfolio construction [5] - HDV has outperformed SCHD over the past one, three, and five years, despite SCHD's lower expense ratio and higher dividend payout [6][3] ETF Comparison - HDV has a concentrated portfolio of 74 stocks with significant sector tilts towards consumer defensive, energy, and healthcare, with top holdings including Exxon Mobil, Johnson & Johnson, Chevron, and Abbvie [1] - SCHD holds 103 U.S. stocks, heavily weighted towards energy (19.34%), consumer defensive (18.5%), healthcare (16.1%), and industrials (12.28%), with top positions including Bristol Myers Squibb, Merck, Lockheed Martin, and ConocoPhillips [2] - SCHD has a 0.06% expense ratio and a dividend yield of 3.8%, while HDV has a yield of 3.2% [3] Performance and Risk - Both ETFs focus on sustainable and quality dividends, with HDV tracking the Morningstar Dividend Yield Focus Index and SCHD tracking the Dow Jones U.S. Dividend 100 Index [7] - Financial strength is crucial for sustaining high dividend yields, with HDV's tilt towards energy benefiting from solid cash flows despite volatile oil prices, while SCHD's exposure to financials has faced headwinds from high interest rates [8][9] Portfolio Composition - The composition of the portfolio is a critical factor in selecting between the two ETFs, suggesting that a mix of both could be beneficial for regular dividend income [10]