SCHD vs. VYM vs. DGRO: I Ran the Numbers for 2026.

Core Viewpoint - The Schwab US Dividend Equity ETF (SCHD) has significantly outperformed its peers in early 2026, with a year-to-date gain of 12% and a dividend yield of 3.39%, positioning it as a leading choice among dividend ETFs after a period of underperformance from 2022 to 2025 [1][2]. Performance Comparison - SCHD's average annual dividend growth over the past 10 years is 10.61%, compared to Vanguard High Dividend Yield ETF (VYM) at 3.79% over the past five years and iShares Core Dividend Growth ETF (DGRO) at 7.49% over three years [1][2]. - SCHD has a lower tech exposure at 9%, while VYM and DGRO have significant allocations to tech stocks, which may increase risk during tech corrections [1]. Sector Allocation - SCHD's holdings include 21% in energy, 17% in consumer defensive, and 16% in healthcare, focusing on stable businesses rather than speculative growth stocks [1][2]. Future Outlook - The current market trend shows a rotation from speculative AI stocks to defensive dividend stocks, which favors SCHD's investment strategy [1]. - Despite its recent performance, expectations are set for continued strong returns for SCHD, as investors recognize its reliability [1].