The Schwab US Dividend Equity ETF (SCHD) has recently outperformed the S&P 500, mainly driven by its significant exposure to the energy sector amid rising oil prices and geopolitical tensions. SCHD currently yields 3.45%, with about 20% of its assets in energy companies like Chevron and ConocoPhillips, which have surged recently. However, despite this short-term strength, SCHD has underperformed major indices over longer periods and is considered structurally weak for long-term growth. Analyst Daniel Jones maintains a Sell rating on SCHD, recommending investors seek better-constructed high-yield portfolios for superior long-term returns and income.
The SCHD ETF has returned just under 2% in the past month, outperforming the S&P 500 ETF (SPY) by nearly 1%. Year-to-date, about 30 SCHD holdings have more than doubled the returns of SPY, which has returned 9.8%. Additionally, 31 SCHD holdings are t...
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 r...
