SCHD Is Magnificent, but This Dividend ETF Could Be an Even Better Dividend Play

econews. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) yields about 3.3%, charges just 0.06% annually, and has become the dividend exchange-traded fund (ETF) of choice for many investors. But there is another dividend ETF that uses a similar stock-selection strategy and has outperformed SCHD over the past decade -- by a lot!

That fund is the First Trust Rising Dividend Achievers ETF (NASDAQ: RDVY).

Like the Schwab U.S. Dividend Equity ETF, it also considers elements of dividend growth, yield, and balance sheet quality in its methodology. It looks at cash-to-debt, payout ratio, positively trending earnings growth, and consistently rising dividends.