PEY vs SCHD

PEYCInvesco High Yield Equity Dividend Achievers ETF

SCHDASchwab U.S. Dividend Equity ETF

In short

PEY Two screens stacked: ten straight years of dividend increases, then the 50 highest yielders, weighted by yield instead of company size. Running since 2004, paying monthly, at 0.68%.

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

PEY The fund seeks to track, before fees and expenses, the NASDAQ US Dividend Achievers 50 Index. It normally invests at least 90% of assets in dividend-paying common stocks comprising that index.

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

• PEY Names must have raised dividends ten years running before the yield hunt starts; the index then takes the top 50 by yield, reconstituted each March and rebalanced quarterly.nasdaq.comnasdaq.com 2invesco.com
• Income arrives monthly rather than quarterly, from a concentrated book of about 50 dividend payers.
• Listed in December 2004, one of the longest-running dividend screens in ETF form, so its behavior across multiple market cycles is lived history, not a backtest.

• 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

• PEY The 0.68% fee sits above the category median and well above index rivals such as SCHD at 0.06% and VIG at 0.04%.
• Weighting by dividend yield, not company size, puts the heaviest weights on the biggest payers, and a fat yield sometimes reflects a beaten-down price rather than a thriving business.nasdaq.com
• About 50 holdings is a narrow slice of the dividend market, so individual names and sector tilts carry real weight.

• 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 PEY profile⁠

Full SCHD profile⁠