The Ultimate Dividend ETF Face-Off: SCHD's High Yield vs. NOBL's Dividend Growth

Core Insights - The article compares two popular ETFs, ProShares S&P 500 Dividend Aristocrats ETF (NOBL) and Schwab U.S. Dividend Equity ETF (SCHD), focusing on their methodologies, cost structures, and sector allocations to help investors choose the right fit for dividend-focused investments [2][3]. Cost and Size Comparison - NOBL has an expense ratio of 0.35% and assets under management (AUM) of $11.3 billion, while SCHD has a significantly lower expense ratio of 0.06% and AUM of $72.5 billion [4][5]. - The one-year total return for NOBL is 6.8%, compared to 4.3% for SCHD, and the dividend yield for NOBL is 2.2%, while SCHD offers a higher yield of 3.8% [4][10]. Performance and Risk Metrics - Over a five-year period, NOBL experienced a maximum drawdown of 17.91%, while SCHD had a slightly lower drawdown of 16.82%. The growth of a $1,000 investment over five years is $1,308 for NOBL and $1,298 for SCHD [6]. Portfolio Composition - SCHD tracks 102 large U.S. dividend stocks, with significant allocations in energy (19.3%), consumer staples (18.5%), and healthcare (16.1%). Key holdings include Bristol Myers Squibb, Merck & Co, and ConocoPhillips [7]. - NOBL focuses on 70 S&P 500 companies with at least 25 consecutive years of dividend growth, with major sector allocations in industrials (22.4%), consumer defensive (22%), and financial services (12.4%). Top positions include Albemarle, Cardinal Health, and C.H. Robinson Worldwide [8]. Investment Implications - SCHD is highlighted for its higher yield and lower costs, making it attractive for income-oriented investors, while NOBL is noted for its focus on dividend growth and stability, appealing to those seeking reliable income from established companies [10][11].