SCHD vs TPHD

SCHDASchwab U.S. Dividend Equity ETF

TPHDCTimothy Plan High Dividend Stock ETF

In short

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.

TPHD A dividend fund with a conviction filter bolted to the front end: biblically screened US large caps, the 100 highest yielders among them, weighted by volatility instead of market cap, with income paid monthly.

Stated mandate

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

TPHD The Fund seeks to track the performance of the Victory US Large Cap High Dividend Volatility Weighted BRI Index before fees and expenses. It normally invests at least 80% of assets in securities included in that index.

Why people hold it

• 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.

• TPHD The screen is the whole point. Timothy Plan has applied biblically responsible filters since 1994, and names clear that gate before yield is even considered.timothyplan.comtimothyplan.com 2
• Volatility weighting, not market cap: the steadier names get the bigger slots, so no single mega-cap can swallow the portfolio.timothyplan.com
• Rules, not hunches. Up to 100 holdings drawn by a published index methodology, running live since 2019, with net investment income paid out monthly.timothyplan.com

Worth knowing

• 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.

• TPHD The screen costs money: 0.52% a year, above the typical dividend-screen ETF and many times what plain-vanilla peers like SCHD and VIG charge.
• It trades lightly next to the category's giants, which can mean wider bid-ask spreads, especially in fast-moving markets.
• The faith screen removes entire business lines, so the holdings can look quite different from a broad dividend index and can behave differently too.timothyplan.com

Full SCHD profile⁠

Full TPHD profile⁠