With $100 billion in assets, the Schwab U.S. Dividend Equity ETF (SCHD) is widely recommended by financial advisors as a conservative, dividend-focused ETF. Both human and AI advisors will have SCHD near the top of their lists of recommended ETFs.
And now, a newly launched ETF aims to mirror the SCHD portfolio while doubling the yield through option trading. Before we get into that, however, let’s review SCHD.
The SCHD goal is to track, as closely as possible, the total return of the Dow Jones U.S. Dividend 100 Index before fees and expenses. The index focuses on quality, sustainable dividends. Stocks are selected for fundamental strength based on financial ratios.
Here are the top 10 holdings.
SCHD has an expense ratio of 0.06%. Index tracking ETFs differ by expenses. The fund has a distribution yield of 3.25% with dividends paid quarterly.
In March 2026, YieldMax ETFs launched the YieldMax U.S. Stocks Target Double Distribution ETF (DDDD), designed to double SCHD’s distribution yield.
DDDD owns shares also to match the Dow Jones U.S. Dividend 100 Index. YieldMax adds an actively managed overlay to sell call option credit spreads on select stocks in the Index. The top 10 DDDD holdings are an almost exact match to the SCHD top 10.
DDDD will also pay quarterly dividends; however, the options trading boosts the distribution yield to 6.35%. Trading options increases expenses, and DDDD has a 1.01% expense ratio.
It is too soon to tell, but it will be interesting to see if DDDD can match SCHD’s share price returns and add an extra 3% yield on top.
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