"To meet their investment goals, some people turn to popular exchange traded funds (ETFs) like the Schwab U.S. Dividend Equity ETF ( NYSEARCA:SCHD). Also, they may choose to own shares of Berkshire Hathaway ( NYSE:BRK-B) stock, which isn't actually an ETF but does provide exposure to a diversified basket of stocks. There's no denying that the SCHD ETF has benefits for investors, but it's not the only way to generate passive income."
"To a limited extent, investors can implement Buffett-style investing with the Schwab U.S. Dividend Equity ETF. For many years, Buffett and Berkshire Hathaway have focused on rock-solid, reasonably valued businesses that pay reliable dividends; a couple of examples would be Coca-Cola ( NYSE:KO) and Chevron ( NYSE:CVX). Passive income seekers may be disappointed to learn, however, that Berkshire Hathaway stock doesn't pay a dividend."
SCHD (Schwab U.S. Dividend Equity ETF) holds 103 mostly blue-chip companies that pay consistent dividends and advertises a 3.79% annual distribution yield. Berkshire Hathaway stock provides diversified exposure to a basket of businesses but does not pay a dividend. SCHD charges a low 0.06% annual expense ratio, while Berkshire shares have no ETF expense ratio. There is some overlap between SCHD holdings and Berkshire holdings, including Coca-Cola and Chevron, allowing partial implementation of Buffett-style investing through SCHD for income-focused investors.
Read at 24/7 Wall St.
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