SCHD ETF outperforms S&P 500 with 20% gain YTD, driven by dividend-focused value stocks.

The Schwab U.S. Dividend Equity ETF (SCHD) has gained 20% year-to-date, outperforming the S&P 500's 10% rise. SCHD focuses on large-cap companies with strong dividend histories and value metrics, avoiding mega-cap tech stocks that led recent market rallies. While SCHD has lagged the S&P 500 over the past decade, its recent performance reflects a rotation toward value and income stocks. It suits income-focused investors seeking diversification from tech-heavy indexes but may underperform during growth-driven rallies.