DJD vs SCHD

DJDAInvesco Dow Jones Industrial Average Dividend ETF

SCHDASchwab U.S. Dividend Equity ETF

In short

DJD The Dow, run through a dividend filter. DJD takes the Dow Jones Industrial Average, keeps the payers, and weights them by 12-month dividend yield instead of share price, for 0.07% a year.

SCHD The dividend fund that checks the balance sheet before it checks the yield. SCHD only considers companies with 10 straight years of payouts, then ranks the survivors on cash flow, return on equity and dividend growth. Quality gate first, income second, at six basis points.

Stated mandate

DJD The fund provides exposure to dividend-paying equity securities in the Dow Jones Industrial Average and selects them according to 12-month dividend yield.

SCHD The fund seeks to track, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100TM Index.

Why people hold it

• DJD A rules-based screen of one of the most recognized indexes in investing: dividend-paying Dow members, ranked and weighted by trailing 12-month yield. No manager discretion.invesco.com
• 0.07% a year puts it in the same fee tier as the largest dividend index funds (SPYD at 0.07%, SCHD at 0.06%) and well under the typical dividend-screen ETF.
• Running since 2015 with quarterly payouts, and it holds close to its stated mandate: one of the more faithful implementations among dividend-screen funds.

• SCHD Charges 0.06% a year, near the floor for US equity ETFs and a fraction of what the typical dividend-screen fund costs.schwabassetmanagement.com
• The rulebook is strict: 10 consecutive years of dividends to qualify, then a composite rank on cash-flow-to-total-debt, return on equity, yield and five-year dividend growth.spglobal.com
• Index rules cap any single stock at 4.5% and any sector at 25%, so one hot name cannot quietly become the whole income stream.spglobal.com
• Running since 2011 and now among the largest, most heavily traded dividend ETFs, with tracking that stays very close to its index.

Worth knowing

• DJD The Dow caps the universe at 30 names, so you get a concentrated, all-large-cap sleeve of roughly 30 stocks, not a broad dividend market.
• Yield weighting sends the biggest stakes to the highest-yielding Dow names, which tilts the portfolio toward whatever corner of the index is currently out of favor.
• It trades thinly next to the household names of the dividend category, so order size and execution matter more here.

• SCHD Roughly 100 names, every one a long-time dividend payer. The fast-growing non-payers that drive much of the US market are not eligible, by design.spglobal.com
• The yield and quality screens tilt it toward mature, cash-generating sectors, so it looks nothing like a total-market fund. Distributions land quarterly, not monthly.spglobal.com
• Not the absolute cheapest shelf item: VIG runs 0.04% and DIVB 0.05%, though both screen for dividends differently.

Full DJD profile⁠

Full SCHD profile⁠