Computed head-to-head · 6 dimensions
SCHD vs SDY
Schwab U.S. Dividend Equity ETF versus State Street SPDR S&P Dividend ETF — yield, safety, growth trend, cost, scale, and tax treatment.
SCHD wins 4–0 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
SCHD or SDY — which is better?
SCHD wins this comparison 4–0 across 6 dimensions. SCHD yields 3.24% — higher than SDY's 2.41% — and carries a 7.9/10 dividend safety score (Solid) vs 7.6/10 for SDY (Solid). SCHD wins 4–0 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
On yield alone, SCHD generates 3.24% vs 2.41% — a 0.83% difference that translates to $830 more per year on a $100,000 investment.
Scorecard at a glance
| Dimension | SCHD | SDY | Winner |
|---|---|---|---|
| Yield | 3.24% | 2.41% | SCHD wins |
| Dividend safety | 7.9/10 | 7.6/10 | SCHD wins |
| Growth trend | — | — | Tie |
| Expense ratio | 6.00% | 35.00% | SCHD wins |
| Scale | $107.9B | $23.5B | SCHD wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 4 wins | 0 wins | SCHD wins |
Dimension by dimension
SCHD wins on yield (3.24% vs 2.41%)
On a $10,000 investment that's about $83 more in annual dividend income before taxes — though higher yield often comes with higher risk.
SCHD's higher yield (3.24%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus SDY's 2.41% — especially if the higher yield is driven by covered calls or a falling share price.
SCHD wins on safety (7.9/10 vs 7.6/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. SCHD scores better on the weighted average of those factors.
Yield-trend comparison unavailable
One or both tickers are missing 5-year average yield data.
SCHD is cheaper (6.00% vs 35.00%)
On a $10,000 position the lower expense ratio saves about $2900/year — small annually but compounds significantly over 20+ years.
On $10,000 invested, SCHD's lower expense ratio saves roughly $29/year in fees versus SDY. Over 20 years that compounds to a meaningful drag — expense ratios are one of the few costs investors fully control.
SCHD is 4.6× larger by AUM
Larger funds tend to have tighter spreads, deeper liquidity, and lower closure risk.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
Full breakdown per ticker: are SCHD dividends qualified and are SDY dividends qualified — each with the after-tax income at every federal bracket.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice. Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
SCHD or SDY — which is better?
SCHD is better on our scoring, winning 4–0 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. SCHD wins 4–0 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
Which is better for income, SCHD or SDY?
SCHD wins 4–0 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
SCHD vs SDY: which has a higher dividend yield?
SCHD yields 3.24% and SDY yields 2.41%. On a $10,000 investment that's about $83 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is SCHD or SDY a safer dividend in 2026?
SCHD scores 7.9/10 (Solid) on the Infnits dividend safety scale. SDY scores 7.6/10 (Solid). SCHD is the safer pick on our scoring model.
Which has better dividend growth, SCHD or SDY?
One or both tickers are missing 5-year average yield data.
SCHD vs SDY: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
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Compare both against your actual holdings
Put SCHD and SDY into the free analyzer with the rest of your portfolio. You'll see what each one contributes to your annual income, your weighted safety score, and whether adding SCHD diversifies you or just duplicates what you hold. No account, no download.