SCHD Isn’t Your Only Option — 2 Monthly ETFs With Better Long-Term Gains

24/7 Wall St.

The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) has earned its place as a cornerstone for income-focused investors, and for good reason. Tracking the Dow Jones U.S. Dividend 100 Index, SCHD delivers a reliable 3.8% trailing 12-month yield, focusing on high-quality U.S. companies with consistent dividend growth and robust financial health.

Its historical performance is impressive, boasting a 12.2% annualized return over the past decade, translating to roughly 217% cumulative growth. With an ultra-low expense ratio of 0.06% and $70 billion in assets under management, it’s a go-to for stability and cost efficiency. Yet, its quarterly payouts and recent struggles -- it's up just 2.8% year-to-date amid a tech-driven market rally -- suggest it’s not the only path to dividend-driven wealth.

For investors seeking monthly dividends to accelerate compounding and potentially higher long-term total returns, the two ETFs below are standout options. Both offer monthly payouts and have historically outpaced the Schwab U.S. Dividend Equity ETF's gains, making them compelling additions or alternatives for income and growth.

Amplify CWP Enhanced Dividend Income ETF (DIVO)

Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) takes a dynamic approach, blending high-quality dividend stocks with a selective covered call strategy to boost income. Managing about $3 billion in assets, it holds a concentrated portfolio of 20 to 30 large-cap S&P 500 stocks, including names like Microsoft (NASDAQ:MSFT) , Broadcom (NASDAQ:AVGO), and JPMorgan Chase (NYSE:JPM).

Unlike purely passive ETFs, Amplify CWP Enhanced Dividend Income ETF's active management targets companies with strong dividend growth while generating additional income -- typically 2% to 4% annually -- from option premiums. Managers strategically avoid writing calls on high-growth stocks to preserve upside potential, striking a balance between income and capital appreciation. This hybrid approach yields a robust 4.5% trailing 12-month dividend, paid monthly, which outpaces Schwab's 3.8% quarterly yield.

Over the past nine years -- its inception date was December 2016 -- Amplify has delivered a slightly higher 12.5% annualized return compared to Schwab. In recent years, its performance has been even stronger, with a 13.4% annualized return over the past five years compared to Schwab's 12% return.

In 2025’s tech-heavy market, Amplify has surged 14.2% year-to-date, while Schwab has lagged. The higher yield, combined with monthly payouts, allows for faster compounding -- potentially adding 1% to 2% to effective annual returns through reinvestment. However, its 0.56% expense ratio is notably higher than Schwab's 0.06%, reflecting the cost of active management.

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For investors, this trade-off is often worthwhile, as Amplify option income cushions volatility and boosts returns in varied market conditions, making it ideal for those seeking steady cash flow with growth potential.

WisdomTree U.S. Quality Dividend Growth Fund (DGRW)

For investors prioritizing long-term capital appreciation alongside dividends, the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) is a standout. Managing $16 billion in assets, it targets U.S. companies with superior fundamentals -- high return on equity, consistent earnings growth, and dividend payout ratios below 75%.

Unlike traditional dividend ETFs that lean toward value stocks, the WisdomTree U.S. Quality Dividend Growth Fund tilts toward quality growth, with top holdings like Microsoft, Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). This growth-oriented approach has driven a 14.3% annualized return over the past decade, outpacing Schwab. Over three years, WisdomTree's edge widens, with a 20% annualized return compared to Schwab's 11% returns. In 2025, WisdomTree has capitalized on the tech rally, posting year-to-date gains of 11.2%.

While its trailing 12-month yield of 1.4% is lower than Schwab's, WisdomTree's total return -- dividends plus price appreciation -- has delivered significantly higher cumulative gains over a decade. Its monthly dividends facilitate reinvestment, enhancing compounding for long-term investors. With a modest 0.28% expense ratio, WisdomTree offers a cost-effective blend of growth and income. Its low volatility, comparable to Schwab's, makes it suitable for conservative portfolios, though its lower yield may appeal less to those prioritizing immediate income.

For investors with a longer horizon, WisdomTree's exposure to high-growth sectors like technology positions it to outperform in bullish markets while still providing reliable monthly cash flow.

Key Takeaway

Schwab U.S. Dividend Equity ETF remains a stellar choice for its low cost and dependable income, but it’s not the whole story. Amplify and WisdomTree offer compelling advantages for investors seeking monthly dividends and stronger long-term gains. Amplify's higher yield and option-enhanced strategy deliver stability and income, while WidomTree's bigger annualized returns cater to those chasing growth alongside dividends.

A balanced portfolio split between all three ETFs could yield around 3.5% while targeting 11% or better annualized returns, blending income, growth, and diversification.

These ETFs shine in tax-advantaged accounts like IRAs, where reinvested monthly dividends can compound tax-free. For retirees, the monthly payouts mimic a regular paycheck, offering flexibility over Schwab's quarterly schedule. By diversifying beyond the Schwab U.S. Dividend Equity ETF, you can harness the power of monthly dividends and potentially superior returns to build lasting wealth.

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