Alternative Dividend ETFs to Consider

The Schwab US Dividend Stock ETF (NYSEARCA: SCHD) has performed quite well lately, showing a remarkable turnaround from previous underperformance. However, it seems to be hitting a bit of a wall now, having dropped over 1% in the last month. Generally, in a good year, SCHD might bring in returns of about 10-15%. So, if you’re after greater profits, perhaps it’s a wise moment to explore other options. While I’m not ready to abandon SCHD just yet, there are definitely other ETFs out there that might offer better upside and comparable—or even superior—dividend yields.

SonicShares Global Shipping ETF (BOAT)

Now, let’s talk about BOAT. It’s a distinctive ETF that tracks the Solactive Global Shipping Index, providing investors with direct exposure to the shipping sector. Despite its potential, it doesn’t get the recognition it deserves. The shipping industry is currently facing challenges, partly due to fluctuating oil prices, even after a ceasefire agreement was reached to alleviate some pressure.

However, this doesn’t necessarily mean BOAT isn’t a good pick. In fact, shipping companies often profit from geopolitical issues because they can charge premium rates during tensions. Some companies even bought oil at lower prices beforehand and are now enjoying the benefits of selling it at a much higher market price. Even after the ceasefire, prices remain 20-30% above where they were before the conflict began.

BOAT’s performance has been impressive, rising 35% between January and the end of February. With shipping costs still elevated, this ETF has gained 83.5% over the past year and offers a dividend yield of 6.24%. Its expense ratio stands at 0.69%.

Franklin International Low Volatility High Dividend Index ETF (LVHI)

Next up is the Franklin International Low Volatility High Dividend Index ETF (LVHI). True to its name, this ETF invests in lower-volatility stocks from developed countries outside the U.S., focusing on firms primarily in Europe, Canada, Japan, and Australia. Such companies tend to be more insulated from tariffs, providing a degree of stability.

LVHI has appreciated 42.2% in the last year, driven by a weaker U.S. dollar and robust foreign economies. With central banks showing no signs of slowing down, the dollar might continue its downward trend.

International firms generally offer higher dividends. Thanks to its strong performance, LVHI currently boasts a dividend yield of 4.5% and a low expense ratio of just 0.4%, or about $40 for every $10,000 invested. It’s worth noting that this ETF stayed true to its “low volatility” claim; it didn’t take a significant hit during the market downturns in 2022 or during the tariff jitters in 2025. Its growth trajectory looks more like that of a growth ETF, without experiencing major losses.

Tortoise Energy ETF (TNGY)

Finally, consider the Tortoise Energy ETF (TNGY). Its dividend yield is around 3.4%, which is comparable to SCHD’s. But if you think energy prices are set to soar eventually, the upside could be significant here. The ETF mainly targets midstream pipelines, which continue to thrive amidst high oil prices, benefiting from the current geopolitical landscape.

While TNGY does have some exposure to upstream oil entities, its focus on pipelines could present a more stable investment as it navigates through ongoing energy supply changes. The U.S. has become a primary energy provider for Europe, highlighting the importance of North American pipelines in meeting both domestic and export demands. Additionally, governments are rapidly tapping into and replenishing energy reserves.

All these factors mean TNGY’s pipelines are likely to remain busy. Although it has risen 12% year-to-date, the expense ratio is a bit on the higher side at 0.85%. Still, many investors might find the potential gains worth the cost.