If you like to keep your investment life as simple as possible, then exchange-traded funds (ETFs) should be on your radar screen. However, you can't just look at an ETF's name and assume anything, since each one is a little different.

When it comes to dividend stocks, Schwab US Dividend Equity ETF (NYSEMKT: SCHD) takes the dividend story an extra step forward, and that could make it the best dividend ETF for you. Here's what you need to know.

A lot of dividend-focused exchange-traded funds look just at dividend yield. For example, SPDR Portfolio S 500 High Dividend ETF (NYSEMKT: SPYD) buys the 80 highest-yielding stocks in the S 500 index. It doesn't matter if the stocks are financially strong or weak, or if they have a history of operating at a high level or are industry laggards.

Continue reading

Source Fool.com