Two retirees hold identical $500,000 positions in dividend ETFs and collect wildly different paychecks every quarter, not because one made a mistake, but because of a single obscure rule buried in one fund’s index methodology.
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Picture a retiree sitting on $500,000 in the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG). Every quarter, another distribution lands in their account. That sounds great. However, when compared to another retiree with the same dollar amount in the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD), the difference becomes clear: SCHD generates roughly twice as much…
