Forget SCHD: 3 Dividend ETFs With Higher Yields and Better 2026 Performance

The Schwab US Dividend Equity ETF (NYSEARCA:SCHD | SCHD Price Prediction) has been an excellent holding in the past few months, and it has undone many years of underperformance quite quickly. SonicShares Global Shipping ETF (NYSEARCA:BOAT), Franklin International Low Volatility High Dividend Index ETF (BATS:LVHI), and Tortoise Energy ETF (NYSE:TNGY) have also done that, and then some.

SCHD, as expected, has started treading water and is down over 1% in the past month. In any good year, an ETF like SCHD may soar 10-15%.

Thus, it’s a good time to look elsewhere if you’re still looking for more gains. I would not dump SCHD, but ETFs that are giving you better upside potential and a dividend yield that matches or surpasses SCHD are few and far between. They’re at least worth taking a look at.

SonicShares Global Shipping ETF (BOAT)

BOAT is a very unique ETF that does not get as much credit as it should. This ETF gives you pure-play exposure to the global maritime shipping industry by tracking the Solactive Global Shipping Index.

There are two things to keep in mind. First, shipping is in distress, and there is a ceasefire in place that removes the higher oil prices.

Neither of those things disqualifies the BOAT ETF from being a solid holding. Shipping companies are making a killing from geopolitics, as even the prospect of conflict lets them charge more. Not only that, certain shipping companies that loaded up on cheap oil before the war broke out were able to sell on the stock market for significantly higher prices. Post-ceasefire prices remain 20-30% higher than where they were.

BOAT stock was already up 35% from January to late February, and I see it going much higher as shipping stays expensive. The ETF is up 83.5% in the past year and has a 6.24% dividend yield. The expense ratio is 0.69%.

Franklin International Low Volatility High Dividend Index ETF (LVHI)

The ETF does what the name says. It invests in low volatility stocks in developed countries outside of the U.S. Thus, you’re mainly investing in companies based in Europe, Canada, Japan, and Australia. These companies are less exposed to tariffs and also get you more stability as they’re either Western or in the Western periphery.

LVHI is up 42.2% in the past year. This is due to the U.S. dollar weakening and a strengthening of foreign economies. The USD could continue to lose value as central banks have shown no sign of slowing down their de-dollarization.

International companies generally pay higher dividends, too. You’re looking at a 4.5% dividend yield along with that 1-year surge, all for an expense ratio of just 0.4%, or $40 per $10,000.

This is truly an underrated ETF, considering it has stayed true to its “low volatility” promise. The ETF did not plunge significantly during the 2022 selloffs, nor did it plunge during the tariff scare of 2025. LVHI’s trajectory makes it look less like a low-volatility ETF and more like a growth holding, minus the selloffs.

Tortoise Energy ETF (TNGY)

The Tortoise Energy ETF’s dividend yield of 3.4% is essentially tied with the SCHD, but the upside potential is unparalleled if you believe energy prices will surge back eventually. A fragile ceasefire is in effect, and crude’s surge did allow oil companies to make significant profits.

Tortoise’s exposure is to midstream pipelines, not direct upstream crude oil companies. Of course, some of the stocks it holds do have partial exposure, but oil prices remain high, so that’s still a net positive.

The pipeline companies held by Tortoise have tremendous potential and have already surged due to the entire world’s energy supplies being rerouted after 2022, and perhaps again after this latest conflict. The U.S. has turned into Europe’s primary source of energy, meaning most of North America’s pipelines are not only supplying oil and gas to meet American demand, but also supplying export terminals. To add to that, the government is releasing and replenishing its energy reserves at a record pace.

All of the factors above are keeping pipelines busy. TNGY has already gained 12% year-to-date despite owning mostly defensive midstream names. The expense ratio is a bit higher at 0.85%, but it is worth the long-term upside.