The Schwab U.S. Dividend Equity ETF (SCHD) recently underwent a major reconstitution, increasing its portfolio turnover to 31%. This change has contributed to SCHD significantly outperforming the S&P 500 since last October. The rebalancing reflects a shift in the fund's holdings, which impacts the investment thesis by potentially enhancing returns but also introducing new risks to monitor. Investors should watch how these changes affect the fund's balance of safety, growth, yield, and value going forward.
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...
