Dividend ETFs have become one of the most competitive corners of the investing world. Every year, new funds emerge with stronger returns, faster dividend growth, or bold claims of outperforming long-time favorites like SCHD. It's no surprise that many investors are beginning to question whether loyalty to a proven fund is preventing them from earning better returns elsewhere.

But choosing a dividend ETF isn't simply about comparing performance charts or chasing whichever fund had the best three-year run. Every ETF is built with a different objective, balancing income, growth, risk, diversification, and downside protection in its own way. A fund that excels during a technology-driven bull market may struggle when market leadership shifts, while a more conservative ETF may quietly deliver the consistency that many long-term investors value most.

Before replacing a core holding based on recent returns alone, it's worth taking a closer look at what each ETF is actually designed to do. The best investment isn't always the one with the highest return—it's the one that best aligns with your financial goals, investment timeline, and tolerance for risk.

If you're a high earner, your portfolio could be quietly costing you thousands in avoidable taxes. On August 6, join Range's CFPs and CPAs for a live session on the tax-smart investing moves that matter most in 2026. 

You'll learn how tax-loss harvesting, asset location, direct indexing, and withdrawal sequencing can help grow your after-tax returns — and walk away with an action plan you can run immediately. Range delivers comprehensive wealth management, aligning tax planning, investment management, retirement, and estate planning into one hyper-personalized plan so nothing slips through the cracks. 

Bring your questions; our experts will answer them live. Seats are limited.

RSVP to join for free

^{This webinar is for informational purposes only and does not constitute investment advice or a recommendation to buy, hold, or sell any security. Forward-looking statements involve risks and uncertainties. Past performance is not indicative of future results. Range defines "high earners" as households with income over $300k.}

This newsletter compares four of today's most talked-about dividend ETFs—SCHD, DGRO, FDVV, and CGDV—to uncover what has really driven their recent performance. We'll examine the trade-offs between dividend income and capital appreciation, how sector exposure has influenced returns, and why the "best" ETF often depends less on past performance and more on the role it plays in your portfolio. By the end, you'll have a clearer understanding of which strategy may be the better fit for your own investing objectives instead of simply following the latest headlines.

Let’s embark on this transformative journey together and position your portfolio for success in this evolving market landscape!

Be sure to read through to the end to catch all the valuable insights this newsletter delivers to your inbox today.

Imagine adding $500 each month to $LEU ( ▼ 3.9% ) stock and following the growth pattern it has shown over the past five years. The chart displays strong upward movement — the price rose from around $24 five years ago to $156.05 today. That reflects a 555% total gain, averaging roughly 46% yearly growth. This performance shows how the company has captured attention in its sector.

If the next five years repeat similar performance, your dollar-cost averaging strategy could build solid value. You would contribute a total of $30,000 over 60 months. Based on that historical pace, your investment could reach about $82,000 to $92,000 after five years. The stock recently touched a 52-week high of $464.25 before adjusting, which highlights both the exciting potential and the sharp moves that can happen along the way.

This consistent buying method helps you navigate the market’s ups and downs while staying focused on the longer trend. You buy more shares when prices are lower and fewer when they rise, which can improve your average cost over time.

The appeal lies in its straightforward style. You simply keep investing the same amount regularly, allowing time and growth to do their part. Past results offer a useful guide, though future markets always bring uncertainty. For those comfortable with some volatility, LEU could be an interesting choice for growing savings over time. Staying disciplined month after month may turn these regular contributions into something truly worthwhile.

Dividend investing has never been more popular. Everywhere you look, there's another ETF claiming to outperform the Schwab U.S. Dividend Equity ETF $SCHD ( ▲ 1.37% ). Some promise higher returns. Others highlight stronger dividend growth. A few even advertise performance that appears impossible to ignore.

When numbers like a $42,000 difference on a $100,000 investment start making the rounds, it's easy to wonder whether sticking with SCHD means settling for less.

But before replacing a long-time portfolio holding with the latest "SCHD killer," it's worth asking a more important question:

Are these funds actually better—or are they simply benefiting from a very specific market environment?

The answer isn't as straightforward as many headlines make it seem.

Recent performance certainly hasn't favored SCHD.

Over the past several years, it has trailed many of its dividend ETF competitors during a market largely driven by technology and artificial intelligence. While investors watched high-growth companies surge, SCHD delivered much more modest returns.

At first glance, that may seem disappointing.

However, judging SCHD solely by recent performance overlooks why many investors own it in the first place.

SCHD wasn't designed to chase the hottest sector every year. Its objective has always been to provide a combination of reliable dividend income, quality businesses, and downside resilience during difficult market environments.

That becomes evident when comparing bear market performance.

During 2022, SCHD declined significantly less than many of its peers while continuing to distribute dividends. For investors relying on portfolio income—or simply looking for greater stability—that consistency matters just as much as headline returns.

Sometimes, avoiding large losses can be just as valuable as generating extraordinary gains.

The iShares Core Dividend Growth ETF $DGRO ( ▲ 0.83% ) has become one of SCHD's most popular alternatives.

Recent returns support much of the excitement.

Over the last three calendar years, DGRO has consistently outperformed SCHD while offering broader diversification across sectors. Its holdings are spread more evenly, reducing dependence on a handful of companies.

For investors who are still building wealth and reinvesting every dividend, this stronger capital appreciation deserves attention.

However, there's another side to the story.

DGRO currently produces a noticeably lower dividend yield than SCHD.

That difference may appear small on paper, but over a large portfolio, it translates into meaningful annual income that retirees or income-focused investors would immediately notice.

Equally important, DGRO proved more volatile during the most recent bear market. While it generated stronger returns during favorable conditions, it experienced larger declines when markets turned negative.

For investors decades away from retirement, accepting that trade-off may be reasonable.

For someone depending on dividend income today, it becomes a much more difficult decision.

The next agricultural transition may not be bigger tractors. It may be autonomous robots replacing herbicides entirely. Greenfield Robotics is building commercial systems designed for that future.

Explore Early Access

_{Greenfield Robotics is Testing The Waters under tier 2 of Regulation A. No money or other consideration is being solicited, and if sent in response will not be accepted. No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement filed by the company with the SEC has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification. An indication of interest involves no obligation or commitment of any kind. “Reserving” shares is simply an indication of interest. There is no binding commitment for investors that reserve shares in this manner to ultimately invest and purchase the shares reserved of the company, or to purchase any shares of the company whatsoever.}

Among the ETFs compared, the Fidelity High Dividend ETF $FDVV ( ▲ 0.96% ) presents perhaps the most compelling case.

Its recent total returns significantly exceeded SCHD's while sacrificing relatively little dividend income.

Unlike some competitors, FDVV also demonstrated respectable resilience during previous market downturns, suggesting that its performance isn't purely the result of excessive risk-taking.

That makes FDVV one of the few alternatives that genuinely deserves consideration.

Still, understanding why it outperformed is essential.

A large portion of FDVV's success comes from its meaningful exposure to technology leaders, including Nvidia, Apple, Microsoft, Broadcom, and Dell Technologies.

Those companies have been among the biggest beneficiaries of the AI-driven market rally.

In other words, FDVV didn't simply discover a superior dividend strategy.

It benefited from owning many of the same technology stocks that powered the broader market higher.

That isn't necessarily a weakness—but it does change what investors are actually buying.

If an existing portfolio already has significant exposure to large-cap technology through the S&P 500 or other growth funds, adding FDVV may increase concentration rather than diversification.

The Capital Group Dividend Value ETF $CGDV ( ▲ 0.29% ) posts perhaps the most eye-catching numbers of all.

Its recent performance has comfortably surpassed SCHD, DGRO, and FDVV, creating one of the strongest three-year return records among dividend-focused ETFs.

Naturally, that attracts attention.

Yet impressive performance alone doesn't tell the entire story.

Unlike SCHD, CGDV has a relatively short operating history.

Its strongest returns were achieved during an exceptionally favorable period for growth stocks and artificial intelligence, leaving investors with limited evidence of how the fund performs through an extended market downturn.

Its portfolio also raises interesting questions.

Technology represents one of its largest sector allocations, led by holdings such as Nvidia, Microsoft, Broadcom, Meta Platforms, and even Royal Caribbean Cruises.

While these companies may contribute to strong total returns, they also blur the distinction between a traditional dividend strategy and a growth-oriented portfolio.

For investors seeking dependable dividend income, CGDV's relatively modest yield may come as a surprise considering the word "Dividend" appears prominently in its name.

Perhaps the biggest takeaway isn't identifying a single winner.

It's recognizing that each ETF serves a different purpose.

SCHD continues to stand out for investors prioritizing dependable dividend income, lower costs, and greater downside resilience.

DGRO offers stronger long-term growth potential for investors with decades before retirement who are comfortable accepting lower income today.

FDVV successfully combines respectable dividend income with stronger recent capital appreciation, although much of that advantage comes from heavier exposure to technology leaders like Nvidia, Apple, Microsoft, Broadcom, and Dell Technologies.

Meanwhile, CGDV remains an intriguing fund, but one whose long-term defensive qualities have yet to be fully tested across different market cycles.

It's easy to become captivated by charts showing one ETF outperforming another over three exceptional years.

The harder—and ultimately more valuable—question is whether that performance remains sustainable when market leadership changes.

Today's winners often benefit from conditions that may not last forever.

Rather than searching for the ETF with the biggest recent return, it may be more productive to identify the one that best aligns with the role it is expected to play inside a portfolio.

Because investing isn't simply about owning the best-performing fund.

It's about owning the right investment for the objective you're trying to accomplish—and continuing to hold it with confidence long after today's headlines have faded.

Ready to Revolutionize Your Wealth?

Here's what's waiting for you:

As the world becomes increasingly digital, this question will be on the minds of millions seeking new income streams in 2026.

The answer is—Absolutely!

Thank you for taking the time to read today’s email! Your support is what allows me to send out this newsletter for free every day. 

 What do you think of the new format? Please provide your feedback in the poll below, and if you find the newsletter valuable, feel free to share it with other investors!

Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.