Updated on January 7, 2026
If you are based in Europe, you cannot invest in SCHD directly.
This is because it is a US-domiciled ETF that does not follow the UCITS regulation.
Without the required KID document, European brokers block access for retail investors.
But there is good news.
I have researched and compared the best dividend ETFs available to European investors.
Some follow a strategy very similar to SCHD, with strong yields and solid quality filters.
Here is a ready-to-use list of the best dividend ETFs for Europeans.
Let’s take a closer look.
Essential things to know:
- In this list you will find the best dividend ETFs a European investor can buy
- In many European countries and UK, high taxes are paid on distributed dividends (I explain how to save a lot of tax)
- ❌ I DO NOT recommend to buy or sell any securities (this is my ETF list)
My personal best SCHD ETF alternative to buy from Europe (Distributing in USD)
| ETF | Dividend Yield (%) | Dividend Frequency | AUM (Million $) |
|---|---|---|---|
| Vanguard FTSE All-World High Dividend Yield UCITS ETF (Distributing) 🏆 | 3.3 | Quarterly | ~1,180 |
| SPDR S&P Global Dividend Aristocrats UCITS ETF | 2.84 | Quarterly | ~1,200 |
| Fidelity US Quality Income UCITS ETF | 1.67 | Quarterly | ~1,200 |
Disclaimer: The value of your investments may rise or fall. Your capital is exposed to risk. This is not investment advice.
How to buy the best Dividend ETFs?
I am using Freedom24 to buy and accumulate liquid AI stocks and ETFs:
Disclaimer: Investments in securities and other financial instruments always involve the risk of loss of your capital. The forecast or past performance is no guarantee of future results. It is essential to do your own analysis before making any investment.
Who are these ETFs for?
Mostly those who want to receive an income from their investment.
Why these ETS?
Because they are among the biggest and best UCITS ETFs available in Europe (and SCHD equivalent), but I still prefer the US-based ones from the previous list.
What do they have in common?
- Domiciled in Ireland
- They are all in US Dollars
- They hold World or US dividend paying companies
- They are not hedged
My personal best Dividend ETFs to buy from Europe (Accumulating in USD)
| ETF | Dividend Yield (%) | Distribution Type | AUM (Million $) |
|---|---|---|---|
| Fidelity US Quality Income UCITS ETF (Acc) | 0 | Accumulating | ~1,150 |
| iShares MSCI World Quality Dividend ESG UCITS ETF USD (Acc) | 0 | Accumulating | ~1,120 |
| Xtrackers MSCI North America High Dividend Yield UCITS ETF (Acc) | 0 | Accumulating | ~115 |
Who are these ETFs for?
Investors who want to build a long-term growing portfolio also based on dividend growth.
Why these ETS?
Because they are among the largest (but still small compared to those domiciled in the US) UCITS ETFs in Europe.
What do they have in common?
- Domiciled in Ireland
- They are all in US Dollars
- They hold World or US stocks
- They are not hedged (that can be expensive)
Best SCHD alternative ETF in Europe Accumulating in EUR
| ETF Name (Acc, EUR) | Distribution Type | AUM (Million $) | Dividend Yield (%) |
|---|---|---|---|
| Fidelity Europe Quality Income UCITS ETF (Acc) | Accumulating | ~29 | 0 |
| Fidelity US Quality Income UCITS ETF (EUR Hedged) (Acc) 🏆 | Accumulating | ~333 | 0 |
| WisdomTree Europe Equity UCITS ETF EUR (Acc) | Accumulating | ~10 | 0 |
Who are these ETFs for?
Investors looking to build a long-term growing portfolio based on dividend growth with limited currency risk.
Why these ETS?
These are the largest euro-denominated Accumulating ETFs that you can easily access from Europe.
What do they have in common?
- Domicilied in Ireland
- They are all in EUR or hedged
- They hold European or US stocks
European Investors searching for the best dividend funds are probably looking for:
- accumulating
- EUR domiciled
- ETF in Euros
…just like these ones.
Some European investors prefer not to be exposed to the USD, and rightly so. I only partly agree, the EUR is a very new currency compared to the USD, GBP and JPY. I don’t like novelty when it comes to my investments.
⚠️ Beware: all these ETFs are extremely small (<100M€), so no one can guarantee that they will still be around in 10 years. Small funds may merge.
⭕️ SCHD ETF Europe Alternative
In my opinion, the best alternatives to the SCHD ETF are clearly:
- Vanguard High Dividend Yield Index ETF (VYM)
- Schwab US Large-Cap Growth ETF (SCHG)
- Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
- ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
These are all non-UCITS ETFs available on Freedom24 only for professional investors or through a few Swiss broker.
Alternatively, you can ask your broker to qualify you as a “qualified investor”.
What ETF is similar to the SCHD ETF Europe?
The best European alternative to the SCHD ETF in UCITS form is the Fidelity US Quality Income.
Although it doesn’t really track the same index as the SCHD, it does a good job.
The Fidelity US Quality Income UCITS is:
- domiciled in Ireland
- a large fund with >800 million euros
- it fully replicates the high-quality companies it follows
- the expense ratio is much higher than the SCHD but still acceptable by European standards
If you are looking for an alternative SCHD ETF Europe then the one form Fidelity can be a decent fit.
Is there an ETF SCHD UK Equivalent?
SCHD UK Equivalent ETFs are just the same as the above mentioned like the Fidelity US Quality Income UCITS.
⚠️ Beware: these are all distribution ETFs, so depending on your country of residence, they may not be very tax efficient compared to accumulation ETFs.
List of Best High-Dividend ETFs in the US
| ETF Name | Dividend Yield (%) | Expense Ratio (%) |
|---|---|---|
| Vanguard International High Dividend Yield ETF (VYMI) | ~5.4 | 0.17 |
| Schwab U.S. Dividend Equity ETF (SCHD) 🏆 | ~3.7 | 0.06 |
| Vanguard Dividend Appreciation ETF (VIG) | ~1.7 | 0.05 |
| JPMorgan Equity Premium Income ETF (JEPI)🏆 | ~8.3 | 0.35 |
The aim of a portfolio of these ETF is to generate high and stable income from funds that have been around for many years.
These funds have many millions of dollars in AUM. Such ETFs are suitable for the very long term as they are unlikely to close or merge.
Let’s see them one by one:
1️⃣ Vanguard International High Dividend Yield ETF (VYMI)
Investing only in US markets could be a mistake.
International diversification is always a good idea if done well as in the case of VYMI.
This ETF has a generous dividend and an attractive valuation.
It makes it into the list of the best dividend stock ETF ever.
- Expense ratio: 0.22%
- Assets under management: $6.8 billion
- Dividend yield: 4.5%
- Top holdings: Shell, Toyota, Novartis (high dividend yielding stocks)
2️⃣ Schwab U.S. Dividend Equity ETF (SCHD)
The world’s most popular dividend ETF is SCHD. It tracks the performance of the Dow Jones US Dividend 100 Index. This index contains some of the best companies in the world. Their dividends are not only generous, but also sustainable (and that is not a detail).
- Expense ratio: 0.06%
- Assets under management: $49 billion
- Dividend yield: 3,68%
- Top holdings: Broadcom, PepsiCo (high dividend yielding stocks)
Investments in securities and other financial instruments always involve the risk of loss of your capital. The forecast or past performance is no guarantee of future results. It is essential to do your own analysis before making any investment.
3️⃣ Vanguard Dividend Appreciation ETF (VIG)
This is undoubtedly one of the most popular and respected high dividend exchange traded fund in the world.
I always take the opportunity to buy some when the markets are falling.
This ETF tracks the performance of the strong NASDAQ US Dividend Achievers.
So we are talking about stocks that have a proven track record of consistently increasing their dividends over the years.
- Expense ratio: 0.06%
- Assets under management: $69 billion
- Dividend yield: 2,1%
- Top holdings: Microsoft, JPMorgan Chase (dividend stocks)
🏆4️⃣ JPMorgan Equity Premium Income ETF (JEPI)
I have dedicated a special space to this unusual ETF, so please read the JEPI review because it is worth it. Also compare JEPI vs JEPQ ETF.
- Expense ratio: 0.35%
- Assets under management: $29 million
- Dividend yield: 9,7%
- Top fund’s holdings: Amazon, Adobe, Mastercard, Microsoft (dividend stocks)
🛑 Objections to the list above
You have been told that you CANNOT buy the best US high dividend exchange traded funds from Europe.
This is not quite true.
In fact, those who are professional or qualified investors can use brokers that allows to buy (some of) the best ETFs from Europe anyway.
Here are some common objections to the above selection of ETFs:
# You can’t buy most US ETFs as a European citizen
Maybe yes.
Some brokers allow you to do so if you are a qualified investor. Read the Freedom24 review to find out more. You will have to complete the W-8BEN form before buying these US securities and read the KID document provided.
# You pay 30% withholding tax in the US with US ETFs
True, I should be able to reduce it to 15% by simply filling in the W-8BEN form. Depending on which country I come from, I can reduce my taxes on US dividends (this is just my experience, ask your tax advisor).
As Europeans, we should also be able to pay just 15% US witholding tax if we fill in that form. I haven’t tested it yet but it should work as promised.
Anyway, if I want to access the biggest and cheapest dividend exchange traded funds, then paying 15% or 30% withholding tax does not bother me. I focus on the best investment first.
Many of the euro-denominated UCITS ETFs are very small and expensive. Not suitable for a long-term ETF strategy (see list below).
Some UCITS ETFs are not even registered in Ireland, so taxation can be over 15%, but this is not the case in all European countries.
If you prefer to invest in european high dividend ETFs accumulating you are also right if the purpose is to build compound interest. Just be aware that many accumulating european dividend ETFs are very small in size, and size matters.
The nightmare: I never want to be invested in an ETF that closes or merges with another and then suddenly has to pay all the tax on the profits.
In fact, if I invest in Accumulating ETFs, I can defer my taxes for a long time, as long as the ETF does not merge or close.
Now, let’s move ahead with more ETFs.
Where to buy these ETFs?
If I am a professional investor I can buy these ETFs from Freedom24.
Here is a screenshot from the broker website:
I’m not recommending this broker or any other. I’m just telling you what I found.
Feel free to visit the broker’s website and check for yourself:
Investments in securities and other financial instruments always involve the risk of loss of your capital. The forecast or past performance is no guarantee of future results. It is essential to do your own analysis before making any investment. 74% of the ETFs available at the Freedom24 platform generate passive income in the form of dividends.
The best ETFs for European Dividend Stocks for JustETF
Here is a popular “best of” list in Europe I have received via email some time ago:
| Best European dividend ETFs for JustETF | Return 1 year | Size in Millions | |
|---|---|---|---|
| 1 | Xtrackers EURO STOXX Quality Dividend 1D | 27% | 233 |
| 2 | L&G Quality Equity Dividends ESG Exclusions Europe ex-UK ETF | 26% | 28 ⚠️ |
| 3 | WisdomTree Europe Equity ETF EUR Acc. | 23% | 9 ⚠️ |
Who are these ETFs for?
What’s not too special about this list of the best ETFs?
The last two are very small funds. I’d never invest in an ETF that small.
The first one is great, BUT it is domiciled in Germany, so it may not be tax efficient for most European citizens.
This is just my opinion, so take it with a pinch of salt. JustETF provides a great service and it’s nice to use, but you should always do your own research.
Best Dividend ETFs Reddit
Many people go to Reddit when they want an unbiased opinion on which are the best ETFs for international investors.
Usually they are disappointed, because Reddit (and most forums) have great experts, but also average users with very little research to back up their statements.
Let’s dive into some threads!
Reddit user question: What is the best Dividend ETF in Europe?
Best Reddit answer:
- SCHD
- VIG
- VOO
- DGRO
- DIVO
- JEPI
- JEPQ
- DJIA
- SPYI
These above are the best ETFs for Reddit.
Most users appreciate the SCHD and the recent JEPY ETF.
One more Reddit question is: “Which dividend ETFs do you plan to hold on to forever?”
The best Redditors answer is:
- 25% SCHD
- 25% JEPI
- 25% DIVO
- 25% DGRO
Again, beware that ETFs like JEPI are not traditional dividend ETFs, they work on options and are more complex.
On Reddit also the discussions on the best broker in Europe are on fire beyond the dividend equity etf.
“U.S.NEWS” has made a popular list of Dividend ETF to Buy
Her is it:
| Best ETF for U.S News | ASSETS | EXPENSE RATIO | DIVIDEND |
| Vanguard Dividend Appreciation ETF | 78 billion | 0.06% | 2% |
| Vanguard High Dividend Yield ETF | 59 billion | 0.06% | 3.3% |
| Schwab Dividend Equity ETF | 47 billion | 0.06% | 3.7% |
| iShares Core Dividend Growth ETF | 22 billion | 0.08% | 2.6% |
As you can see, these from U.S. News are all very cheap ETFs compared to the UCITS high dividend yielding stocks ETFs we get in Europe. They are all in USD and all huge compared to our EUR funds. In the US they measure the size of the funds in billions, in Europe in millions.
Investments in securities and other financial instruments always involve the risk of loss of your capital. The forecast or past performance is no guarantee of future results. It is essential to do your own analysis before making any investment. 74% of the ETFs available at the Freedom24 platform generate passive income in the form of dividends.
The Motley Fool list of “Best Dividend Index Funds”
The very much loved Motley Fool has this list of dividend index funds:
| FUND or ETF | DIVIDEND | RISK LEVEL |
|---|---|---|
| Schwab U.S. Dividend Equity ETF | 3.80% | Below Average |
| Invesco S&P 500 High Dividend Low Volatility ETF | 4.40% | Average |
| iShares Core High Dividend | 4.07% | Below Average |
| ProShares S&P 500 Aristocrats ETF | 1.99% | Below Average |
| Vanguard High Dividend Yield ETF | 3.26% | Below Average |
| Vanguard Dividend Appreciation Index ETF | 1.98% | Below Average |
Interestingly, The Motley Fool is publishing a “Risk Level” for its best dividend index funds” list instead of expense ratios.
NOTE: There are no UCITS ETFs on the “best list” of the world’s leading investment advisers. Apart from Europeans and a few Latin Americans, no one invests in UCITS ETFs.
Are they safer and more selective? Maybe they are! But nobody uses them because UCITS ETFs are usually ugly copies of the originals, tiny and cost more.
There is also a list of the best SP500 ETF for EU citizens (like me).
SCHD ETF Stock Split
In October 2024, the Schwab U.S. Dividend Equity ETF (SCHD) completed a 3-for-1 stock split. This split lowers the price per share, making it more accessible to investors, while the total value of holdings remains unchanged. SCHD remains a top choice for dividend-focused investors due to its strong yield and growth potential.
A list of ETF from a Researcher
According to EuropeanDGI, a reliable researcher, the best ETFs are:
- Fidelity US Quality Income UCITS ETF USD
- VanEck Vectors Ms Developed Markets Dividend Lead
- iShares STOXX Global Select Dividend 100
I can’t help but notice that there is a guy who has done some excellent research on dividend ETF using the Chowder Rule. His results are shown above.
ETF with great dividend 10-Year Avgerage Annual Return comparison
Here is a fantastic chart from YCharts on the Best Performing Dividend ETFs:
ETF in the chart:
- SPDR S&P Dividend
- Vanguard High Dividend Yield ETF
- Schwab US Dividend Equity exchange traded fund
Can you live off ETF dividends?
The answer is yes, you can live on dividend payments. But you have to bear in mind that if your goal is to live on dividends, it is most likely to be achieved in the long term.
Unless you have a very large sum of money to invest in ETF and funds, the process will be slow.
How much do you have to invest to get $1,000 a month in dividends?
In an ETF that yields 2% a year, you would need to invest €600,000 up front to reliably receive €12,000 a year (or €1,000 a month) in dividends.
How can you earn €1,000 a month in dividend payments?
Yes, you would need a portfolio of dividend-paying ETFs worth at least €300,000.
Focusing only on European dividend stocks and ETFs may not be the safest investment to generate income. ETFs Total expense ratio is also a factor to consider.
How to invest in dividend stock ETF?
Investing in ETFs like these requires research and clear ideas.
As you have seen, these ETFs are all different.
To invest in dividend paying ETFs all you need to do is:
- Choose the best high dividend ETF in Europe
- Make sure they manage their income in the way you want (accumulation or distribution)
- Check that they have a tax regime that is compatible with your country of residence (there are big differences in Europe)
- Decide how much you want to invest in ETFs
- Hire the best broker in Europe to buy ETFs for you
That is all.
Generally speaking, those who invest in this way accumulate a small amount of ETFs each month, as with DCAs.
It is worth keeping an eye on your portfolio or having it managed by an authorised adviser, especially if large sums are involved.
Risk of investing in high-yield ETFs
Some of the risk international dividend investors have to face are:
| Risk | Description | Risk Rating |
|---|---|---|
| Market Risks | The risk of overall market fluctuations that can affect the value of investments. | 🟡 |
| Geographical Exposure Risk | The risk related to investing in specific regions or countries, which may be impacted by local economic, political, or regulatory events. | 🔴 |
| Tracking Error | The risk that the performance of an ETF does not precisely match the index it is designed to track. | 🟡 |
| Currency Risk | The risk of fluctuating exchange rates impacting the value of dividends and the overall investment when investing in foreign markets. | 🔴 |
| Fund Managers Getting Too Creative | The risk of fund managers deviating from the core strategy of the fund, potentially impacting performance. | 🟡 |
If I’m not too confident about investing in dividend ETFs, I can turn to the best high-yield savings Accounts in Europe.
Dividends ETFs and Taxes in Europe
High taxation on dividends can be a problem.
Some investors in Europe go so far as not to invest at all, arguing that too much money ends up in tax anyway.
How are ETF dividends taxed?
Let’s see what the rules are.
I am not a tax advisor and do not want to give incomplete or inaccurate information. So I invite you to talk to your accountant.
Mutual funds in Europe are subject to a 30% withholding tax on all US equity dividend payment.
The exception is Irish domiciled ETFs and funds which pay ‘only’ 15%.
All other ETFs pay 35%, including funds domiciled in Germany, Luxembourg and the Netherlands.
The best dividend ETFs for German investors may differ from the best high yield ETF for UK investors and this is because of tax.
How did I research these ETF list?
I have been an investor in both dividend exchange traded funds and shares for a long time.
Most of my investments are from Europe, so I know what are the typical problems we have to face with taxes and tools. I used several websites to research and compile this list and many of those are of course part of my portfolio.
Of course, I thought it would be healthy to also share the point of view of some fund managers, big brands in the financial field, such as Morningstar, Motley Fool and not only my humble point of view.
I want to be clear, not all of these ETF strategies are suitable for beginners and they are to be considered only for the long term.
Which ETF Has the Highest Dividend Yield?
The popular EFTDB has a list of the highest dividend paying ETFs:
| ETF | Name | Dividend Yield |
|---|---|---|
| RRH | Advocate Rising Rate Hedge ETF | 327% |
| TSLY | YieldMax TSLA Option Income Strategy ETF | 58% |
| KBA | KraneShares Bosera MSCI China A 50 Connect Index ETF | 56% |
I avoid investing in the highest dividend paying companies ETFs because very often there are serious reasons for them to pay that dividend (usually a sharp fall in price).
If I am looking for stock instead of ETF I can have a look at the European Dividend Aristocrats. Some of the best dividend stocks in the Eurozone can be also found using justETF (review).
How to buy the best Dividend ETFs?
I am using Freedom24 to buy and accumulate liquid AI stocks and ETFs:
Disclaimer: Investments in securities and other financial instruments always involve the risk of loss of your capital. The forecast or past performance is no guarantee of future results. It is essential to do your own analysis before making any investment.
Conclusions about SCHD in Europe
Investing in high-dividend paying ETFs is certainly a good idea.
Don’t take my ETF picks as the absolute best to buy, always do your research.
A smart investor should never chase the highest dividend yield. Although ETFs are well diversified, high dividend yields often come with high risk.
SCHD ETF in Europe is not available (even if you can still buy it). There are decent SCHD ETF equivalent even for UK investors.
If you’d like to share your experience of the best dividend ETFs in Europe in the comments, please feel free to do so.
FAQ on the dividend ETF for European investors
ETFs receive dividends from the companies they hold. Depending on whether they are accumulation or distribution ETFs, then the ETF will either reinvest the dividends or distribute them to investors.
Also depending on the legal structure, they will distribute the dividends as soon as possible or quarterly.
The ones that say “Accumulation” or “Acc” or Capitalisation are ETFs that automatically reinvest dividends. Those that bear “Distribution” or “Dist” are the ones that pay dividends.
The S&P Euro High Yield Dividend Aristocrats Index is probably the best European dividend index out there.
To buy US ETFs from Europe you can use a broker that allows it, you can became a sophisticated investor or even use options. Alternatives to the SCHD ETF Europe exist!
Many investors are buying Amazon Stocks because they believe it soon will start to pay dividends
Very helpful article. The benefits of investing in dividend ETF are very important but I undrstood it a bit too late unfortunately. If only I had started earlier!
It is never too late for dividend investing, Robert.
This article was really helpful. I couldn’t find anywhere this information on some dividend ETF for us in Europe. I needed some info about this topic. Thanks!
Not so easy to manage a portfolio of dividend paying stocks, believe me. With dividend ETFs it is easier but not hussle free anyways.
You make it sound way to easy than it is.
Well, with dividend ETFs is much easier compared to stocks, you are right.
I don’t believe it to be too hard.
The only problem is to understand what I need my money to do and then act on it.
If I need an income, both non-ucits ETFs can suit me.
If I need to grow, I’ll prefer mostly accumulating ETFs that are right for European investors.
Thanks, this dividend ETF tutorial was very useful to me…I understood how much I can improve myself to achieve the financial success I want, to obtain a long-term passive income through EFT.
The advantages of investing in dividend ETFs are truly significant, and I wish I had realized this sooner. If only I had embarked on this journey earlier, my financial future would be brighter. I haven’t had the chance to learn about investing when I was young. This article is inspiring me to add more ETF to my humble portfolio. VIG.US is my next pick.
VIG.US is a great one.
I have registered on freedom24 broker to buy the ETF you mention. I have deposited 2500 euros because I want to be cautios and invest slowly. Any additional recommendations?
Lots of things I didn’t know about dividend etf. Thanks for collecting this data but please write shorter posts.
I have filed the W8BEN so I will have a reduced withholding in the US. This makes the dividend I receive more juicy. I am retired, I just need more income, but if I were young I’d prefer a mix of US and European dividend ETF.
So I can buy SCHD from Portugal?
Is it true?
I didn’t know I could buy US ETF from Europe.
This is game changing for me. Not so much because of the dividend ETF you mention at the beginning, but rather because I have always dreamed of adding legendary funds like VOO and SPY in my pocket.
Very clear and understanable explanations.
I´m a very cautious and conservative person, dividend ETF may be a slightly safer way to add new assets to my (overexposed to European markets) portfolio.
This is actually pretty good for Europeans, I wish it was like this in other regions of the world
Investors for Middle East and Latin America have access also to UCITS ETFs and it may be convenient for them in some cases.
Useful article. Accumulating ETFs outperform distributing so much if your country makes you to pay taxes on dividends. For example, i live in Spain and I have to pay 20% taxes on dividends. In the long run, thats a huge difference.
All true, Lampro.
So accumulating etfs dont incur taxes each time a dividend is issued and before it is reinvested?
Correct. The accumulating ETFs allow me not to receive the dividends, so that I do not have pay taxes on it. At the same time, the dividends are reinvested and I don’t have to do it myself. In most countries it is like this, and taxes are due only at the moment of selling if it that is the case.
JEPI is a very good high-dividend ETFs with good future. I also use Freedom24 and the results are awesome, thanks for the detailed information!
Jepi ETF îs a great news. More ETFs like this are coming.
Complex and interesting article. Sounds like a good opportunity to invest and earn and also a better explanation about dividends.
Happy to be helpful, Constantin.
Dividends, I love it.
This is exactly the information I was looking for.
Glad to be helpful, Diana
I didn’t know I could buy US ETFs from Europe. That’s good news.
I knew eToro allowed to buy non units ETFs BUT they were just CFDs, not real ETFs.
This is game changing!
True, eToro mostly offers CFDs not real ETF.
I am going to test what you report to be good alternative to SCHD ETF but I am still skeptical.
So you mean: why looking for European alternative schd etf europe if you can have the real SCHD ETF in your portfolio!
Thanks to the silly European UCITS regulations we will always have to pay more for worse and more expensive ETFs.
So, thank you, I’ll stop looking for a schd ucits and I’ll go for the real one. I don’t understand why nobody is talking about it.