Want Income and Growth? This Simple 3-ETF Portfolio Does Both

Core Viewpoint - Income investors are seeking a balanced approach between high yields and capital appreciation in a volatile market, with dividend-focused ETFs providing a suitable solution [1] Group 1: SCHD ETF Overview - The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-quality U.S. companies with strong cash flows and a history of dividend payments [2] - SCHD currently yields 3.4% or $1.04 per share annually, significantly higher than the S&P 500 Index average of 1.16%, making it attractive for income-focused investors [3] - The fund emphasizes financial strength and shareholder returns, with a portfolio concentrated in defensive sectors such as energy (22.4%), consumer equities (18.6%), and healthcare (15.6%) [4] Group 2: Performance and Appeal - Over the past five years, SCHD has delivered a total return of 25%, compared to the S&P 500 Index's 62.6%, but offers a smoother investment experience [6] - The underperformance is attributed to lower exposure to high-growth tech stocks, yet SCHD remains appealing for its reliable income stream and resilience during market downturns [6] Group 3: DGRO ETF Overview - The iShares Core Dividend Growth ETF (DGRO) tracks the Morningstar U.S. Dividend Growth Index, focusing on companies that consistently grow their dividends over time [7]