Picking individual stocks is not an easy task, and not everyone has his aspiration for such a tiring job amidst an increasingly volatile and unpredictable market. First, it is usually difficult to balance growth and income goals, and that is why many private investors usually add both equities and bonds in various proportions. But other investors prefer to deal with stocks only, because a uniform asset class is easier to keep an eye on. For example, one can choose long-term winners that generate low returns, such as Apple (AAPL) or AT&T Inc. (T), but sacrifice meaningful returns in the short to mid-term for the sake of long-term growth.

Therefore, it might be a better idea for retail investors to buy an ETF that offers the best of both domains. This brings us to the Schwab Dividend Stocks of America ETF (SCHD), which has a generous dividend and has beaten the market over the long term. SCHD offers broad diversification into high-quality dividend growth stocks without the need for individual stock selection.

All in all, SCHD is a dividend-focused ETF that tracks the total return of the U.S. Dow Jones Index. The Dividend 100 Index is managed by Charles Schwab (SCHW). The Schwab U.S. Dividend Stock ETF has outperformed the market over the long term, with a total return of 197% over the past 10 years. SCHD is well diversified with Industrials, Healthcare, Financials, Technology, and Consumer Defensive comprising the top 5 sectors.