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. 🙏