SCHD vs RISE Dow Jones TOP10 Complete Comparison - Which US Dividend ETF Suits You
⚖️ Two ETFs, What's Different?
SCHD and RISE US High Dividend Dow Jones TOP10. Both are US dividend ETFs, but their methodology and performance differ significantly.
📊 Basic Comparison
| Item | SCHD | RISE TOP10 |
|---|---|---|
| Holdings | ~100 | 10 |
| Index | Dow Jones US Dividend 100 | Dow Jones High Dividend TOP10 |
| Weighting | Market cap weighted | Equal weight |
| Rebalancing | Quarterly | Annual |
| Dividend Yield | ~3.5% | ~3.37%+ |
| Total Fee | 0.06% | 0.01% |
🔍 Key Differences Analyzed
1. Holdings: Diversification vs Concentration
SCHD (~100 stocks)
- High diversification
- Lower individual stock risk
- Tracks broad market movements
RISE TOP10 (10 stocks)
- Concentrated investment
- Top holdings have major influence
- Individual performance significantly impacts index
2. Stock Selection Method
SCHD
- Dividend consistency
- Financial health (ROE, debt ratio, etc.)
- 5-year dividend growth rate
- Complex quant screening
RISE TOP10
- Single criterion: expected dividend yield
- Top 10 from Dow Jones 30
- Simple and clear methodology
3. Weighting Method
SCHD: Market Cap Weighted
- Higher large-cap exposure
- Distributed impact during additions/removals
RISE TOP10: Equal Weight
- All stocks at 10% each
- Relatively smaller stocks have equal influence
- Single stock surges/drops have larger impact
📈 Performance Comparison (Index Basis)
Annual Returns
| Year | SCHD | RISE TOP10 |
|---|---|---|
| 2022 | -5.5% | -1.2% |
| 2023 | -4.0% | +9.8% |
| 2024 | +3.2% | +12.5% |
| 2025 YTD | -0.8% | +13.2% |
RISE TOP10's underlying index has dramatically outperformed SCHD over the past 3 years.
Why Such Difference?
2025 RISE TOP10 Top Performers:
- IBM: +34.2%
- Johnson & Johnson: +30.1%
- Cisco: +19.3%
With 10-stock equal weighting, just 2-3 top performers drive overall returns higher.
SCHD's 100-stock diversification means individual outperformance gets diluted.
💡 Which Investor Type Fits?
SCHD Suits You If:
✅ Stability-focused
- 100-stock diversification lowers volatility
- Minimized individual stock risk
✅ Trust in proven methodology
- 10+ years of track record
- Complex quant screening
✅ Long-term dividend growth focus
- Stock selection considers dividend growth
- High dividend sustainability companies
RISE TOP10 Suits You If:
✅ Prefer simplicity
- Clear "top 10 high-dividend" criterion
- Strategy anyone can understand
✅ Prefer concentrated investing
- Focus on 10 proven large-caps
- Maximize benefit from individual stock gains
✅ Tax-advantaged account use
- Ultra-low 0.01% cost
- US dividend exposure in ISA/pension accounts
✅ SCHD complement
- Diversification through different methodology
- Portfolio diversification
🔄 Portfolio Suggestions
Stability-Seeking
SCHD 70% + RISE TOP10 30%
- SCHD diversification + TOP10 concentrated returns
Balanced
SCHD 50% + RISE TOP10 50%
- Balance of both methodologies
Concentrated
SCHD 30% + RISE TOP10 70%
- TOP10 focus, SCHD for stability
⚠️ Cautions
-
Past performance ≠ Future performance
- RISE TOP10's recent success isn't guaranteed to continue
- SCHD could outperform in different market conditions
-
Currency Risk
- Both invest in US stocks
- Volatility from exchange rate fluctuations
-
Dividend Taxation
- Regular accounts: 15.4% dividend income tax
- Tax-advantaged accounts: Tax deferral/exemption
📝 Conclusion
Should you sell SCHD?
→ No. If you trust SCHD's methodology, keep it.
Should you switch entirely to RISE TOP10?
→ Rather than full replacement, parallel investment is recommended.
The two ETFs are complementary. Different methodologies mean holding both provides diversification benefits.
For those who wanted to invest in US high-dividend stocks rather than just SCHD, RISE TOP10 is an excellent alternative. 🙏