The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) and the Schwab U.S. Dividend Equity ETF (SCHD) offer different strategies for investors. NOBL focuses on long-term dividend growth, while SCHD combines dividend growth, quality, and high yield. SCHD may be better positioned as the market shifts away from tech but the economy remains stable.

Investing in dividend growth stocks and high-yield stocks can yield different results. Dividend growers are stable, mature companies with solid cash flows but little growth. High-yielders rely on heavy cash flow generation for larger dividends and are more cyclical.

The Schwab U.S. Dividend Equity ETF is benchmarked to the Dow Jones U.S. Dividend 100 Index, focusing on stocks with at least 10 years of dividend payments. The ProShares S&P 500 Dividend Aristocrats ETF tracks companies from the S&P 500 that have increased dividends annually for at least 25 years.

SCHD has underperformed due to a focus on dividend payers during the tech boom, but its defensive, cyclical, and value stocks could thrive in a market rotation. NOBL’s value orientation and defensive market tilt may do well in a broader risk-off market shift. SCHD’s 3.7% yield and quality strategy make it an excellent choice for dividend-seekers.

The Schwab U.S. Dividend Equity ETF may not be among the 10 best stocks identified by the Motley Fool Stock Advisor team for investors to buy now. Past recommendations like Netflix and Nvidia have shown significant returns, with Stock Advisor’s average return at 955%, outperforming the S&P 500.

David Dierking has no position in the stocks mentioned. The Motley Fool has positions in ProShares S&P 500 Dividend Aristocrats ETF and recommends C.H. Robinson Worldwide. SCHD vs. NOBL: High Yield vs. Dividend Growth ETF Showdown was originally published by The Motley Fool.

Read more at Yahoo Finance: High Yield vs. Dividend Growth ETF Showdown