The Schwab US Dividend Equity ETF (SCHD) has reversed its trend of underperformance to achieve notable outperformance, driven by a market rotation favoring value over growth stocks. The 2026 reconstitution of SCHD was the most significant in its history, removing overheated energy stocks and adding high-quality financials, healthcare, and alternative asset managers. SCHD's disciplined, rules-based approach emphasizes dividend growth, strong balance sheets, and value, with new additions showing an average five-year dividend growth rate above 60%. With strong cash inflows, improved growth metrics, and a yield about three times that of the S&P 500, SCHD remains an attractive option for investors seeking slow growth and income over time.
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...
