SCHD And SCHG: 3 Years Later, This Two-ETF Combination Still Makes Sense

Three years ago, I discussed owning the Schwab US Dividend Equity ETF and the Schwab US Large-Cap Growth ETF in equal weight as an effective alternative to SPY. The combination continues to deliver strong returns and a higher starting yield. This article explains why this combination works. It starts with a comparison of each ETF's selection process and ends with a detailed fundamental comparison at the factor level. My analysis reveals that a 50/50 weighting results in similar diversification, a lower portfolio beta, competitive EPS growth, and more stable ROE relative to its five-year...