A $100,000 investment in the iShares Core Dividend Growth ETF grew to $168,700 over the five years ended October 9, 2026, according to the source. The same investment in the Schwab U.S. Dividend Equity ETF reached $155,870. That 12.83 percentage-point total-return gap favors DGRO, but it does not make a switch automatic.
What the return comparison includes
The calculation assumes that every distribution was reinvested. That is appropriate for comparing total returns, but it may not match the experience of an investor who spent SCHD's quarterly income. With cash distributions withdrawn, less capital remains in the fund to compound.
The longer record also favored DGRO. The source reported a ten-year total return of 258.3% for DGRO and 233.8% for SCHD, a 24.5-point difference. These figures describe historical outcomes, not expected returns.
Recent performance tells a different story
SCHD returned 26.64% over the latest year in the source's comparison, versus 15.77% for DGRO. Its 10.87-point lead shows how leadership can reverse even when both funds emphasize dividend-paying U.S. companies.
The funds use different selection rules. DGRO tracks an index focused on companies with histories of dividend growth and applies dividend-growth and payout screens. SCHD tracks a dividend-focused index with its own quality and sustainability tests. Their sector and company weights can diverge, producing different results when market leadership changes.
Costs are low for both funds. The iShares page listed DGRO's expense ratio at 0.08%, while Schwab listed SCHD's at 0.06%. The two-basis-point fee difference equals $20 a year on $100,000 before compounding, too small to explain the historical return gap by itself.
Taxes can overwhelm a clean backtest
Selling SCHD in a taxable account can create a capital-gains bill. That tax reduces the amount available to reinvest in DGRO and may take years to recover through any future performance advantage. Inside a tax-deferred retirement account, the immediate tax obstacle may not apply, although trading and allocation choices still matter.
An investor who wants more DGRO exposure without realizing a large gain could direct new contributions and distributions toward DGRO while leaving existing SCHD shares in place. That changes the portfolio gradually rather than turning a historical comparison into a single all-or-nothing trade.
What investors should decide first
The relevant question is not which ticker won one window. It is whether the investor prioritizes current income, dividend growth, diversification, tax efficiency or a particular factor exposure. Portfolio overlap also matters because owning both funds does not automatically create two independent strategies.
BTI's conclusion is that DGRO earned the stronger long-term record in the cited periods, while SCHD's recent outperformance remains meaningful. Investors should compare methodology and after-tax consequences before acting on the headline figures.