"Dividend exchange-traded funds (ETFs) have gained traction in 2025. It has helped investors navigate the market uncertainties while ensuring steady passive income. The Schwab US Dividend Equity ETF (NYSEARCA:SCHD ) is one of the most popular ETFs today. It is a top choice of many due to the dividend yield of 3.83% and has ensured steady returns. However, SCHD isn't as successful as it used to be."
"The Vanguard Dividend Appreciation Index Fund ETF is worth consideration for income investors. This ETF has a yield of 1.57% and has gained 13.22% in 2025. While its yield is lower than SCHD's, it has shown significant capital appreciation. The fund has an expense ratio of 0.05% and is exchanging hands for $220.66. VIG has generated a cumulative 3-year return of 48.47% and a 5-year return of 76.50%."
Dividend ETFs gained traction in 2025 and provided investors with passive income amid market uncertainty. The Schwab US Dividend Equity ETF (SCHD) yields 3.83% but has only gained 0.73% in 2025, partly because of limited exposure to the technology sector. Alternatives include Vanguard Dividend Appreciation ETF (VIG), Vanguard High Dividend ETF (VYM), and JPMorgan Equity Premium Income ETF (JEPI). VIG yields 1.57%, gained 13.22% in 2025, has a 0.05% expense ratio and trades near $220.66. VIG posted a cumulative 3-year return of 48.47% and a 5-year return of 76.50%, holds 338 stocks, and allocates heavily to technology, financials, and healthcare.
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