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Schwab US Dividend Equity ETF (NYSEARCA:SCHD) It has been an excellent holding over the past few months, and has quickly overturned several years of underperformance. SonicShares Global Shipping ETF (NYSEARCA: BOAT)Franklin International Low Volatility High Dividend Index ETF (Bat:LVHI)And Tortoise Energy ETF (NYSE:TNGY) So did it, and then some.
As expected, SCHD has started declining and is down by more than 1% in the last month. In any good year, an ETF like SCHD can rise 10-15%.
Thus, if you are still looking for more profits then it is a good time to look elsewhere. I wouldn’t dump SCHD, but ETFs that are giving you better upside potential and dividend yields that match or exceed SCHD are very few. They’re at least worth a look.
SonicShares Global Shipping ETF (BOT)
BOAT is a very unique ETF that doesn’t get as much credit as it should. This ETF gives you pure exposure to the global ocean shipping industry by tracking the Solactive Global Shipping Index.
There are two things to keep in mind. First, shipping is in trouble, and there is an armistice that removes high oil prices.
None of these things disqualify the BOAT ETF from being a solid holding. Shipping companies are hurting from geopolitics, as the possibility of conflict also allows them to charge higher fees. What’s more, before the war began, some shipping companies that loaded cargoes on cheap oil were able to sell them at much higher prices on the stock market. Prices remain 20-30% higher than where they were after the ceasefire.
BOAT stock was already up 35% from January to the end of February, and I think it will increase even more as shipping remains expensive. The ETF is up 83.5% in the last year and has a dividend yield of 6.24%. The expense ratio is 0.69%.
Franklin International Low Volatility High Dividend Index ETF (LVHI)
ETFs do just what the name says. It invests in low-volatility stocks in developed countries outside the US. Thus, you are investing primarily in companies based in Europe, Canada, Japan, and Australia. These companies are less exposed to tariffs and also provide you with more stability because they are either in the West or the Western Periphery.
LVHI has increased by 42.2% in the last year. The reason for this is the weakening of the US dollar and the strengthening of foreign economies. The value of the USD may continue to fall as central banks show no signs of slowing their de-dollarization.
International companies also generally pay higher dividends. You’re looking at a 4.5% dividend yield with that 1-year upside, all for an expense ratio of just 0.4%, or $40 per $10,000.
This is actually an underrated ETF, considering that it has lived up to its “low volatility” promise. The ETF didn’t decline much during the 2022 selloff, nor did it decline during the 2025 tariff scare. LVHI’s trajectory makes it look less like a low-volatility ETF and more like a growth holding, sans the selloff.
Tortoise Energy ETF (TNGY)
The Tortoise Energy ETF’s dividend yield of 3.4% is essentially tied to SCHD, but its upside potential is unparalleled if you believe energy prices will eventually rise back. A fragile ceasefire is in effect, and the crude oil boom has allowed oil companies to make significant profits.
Turtle’s exposure is to midstream pipelines, not directly upstream crude oil companies. Of course, it has partial exposure to some of the stocks it holds, but oil prices remain high, so it’s still a net positive.
The pipeline companies holding Tortoise have tremendous potential and are already on the rise due to the rerouting of the entire world’s energy supplies after 2022 and perhaps after this latest conflict. The US has turned into Europe’s primary source of energy, meaning most of North America’s pipelines are supplying oil and gas not only to meet US demand, but also to export terminals. Furthermore, the government is releasing and replenishing its energy reserves at a record pace.
All of the above factors are keeping pipelines busy. TNGY has already gained 12% year-to-date, despite owning mostly defensive midstream names. The expense ratio is a bit high at 0.85%, but it is worth the long-term benefits.