SCHD vs NOBL: Dividend ETF Face-Off — High Yield or Dividend Growth?
Compare SCHD and NOBL dividend ETFs: expense ratios, sector tilts, dividend yield vs dividend growth, and which fits your income-investing strategy now
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Choosing between SCHD and NOBL comes down to whether you prioritize current income or steady dividend growth. Both are popular dividend ETFs, but expense ratios, sector tilts, and underlying dividend strategies produce different risk/reward profiles for income investors.
What SCHD offers
SCHD (Schwab U.S. Dividend Equity ETF) targets high-quality U.S. companies with attractive dividend yields and solid fundamentals. SCHD is known for a low expense ratio relative to peers, making it cost-efficient for long-term investors. The fund often tilts toward higher-yield sectors such as financials and energy, so it can deliver stronger near-term income but may be more sensitive to sector cycles.
What NOBL offers
NOBL (ProShares S&P 500 Dividend Aristocrats ETF) tracks companies in the S&P 500 that have raised dividends for 25+ consecutive years. That dividend aristocrats approach emphasizes dividend growth and capital preservation. NOBL typically leans toward consumer staples, healthcare, and industrials—sectors valued for consistency rather than yield spikes.
Expense ratio and cost considerations
Expense ratio matters for compounding returns. SCHD generally offers a notably lower expense ratio than NOBL (e.g., 0.06% vs. 0.35%), which can add up over long holding periods. For buy-and-hold investors focused on minimizing fees, SCHD’s cost advantage is meaningful.
Yield vs. growth: pick your priority
If your goal is higher current income, SCHD’s higher dividend yield and sector exposure may fit better. If you prefer dividend growth and stability, NOBL’s aristocrats strategy provides companies with a track record of raising payouts through market cycles. Both funds can complement a diversified portfolio: SCHD for yield and NOBL for durable income growth.
Which ETF fits your portfolio?
- For income-focused investors seeking lower fees and higher yield: consider SCHD.
- For investors who prioritize predictable dividend growth and capital stability: consider NOBL.
Conclusion
SCHD and NOBL are strong choices in the dividend ETF universe. Your decision should reflect your income needs, tolerance for sector concentration, and preference for lower fees versus dividend-growth reliability. Evaluate both ETFs within the context of your overall asset allocation and investment horizon before committing.
Published on: January 5, 2026, 10:05 am
