The Schwab U.S. Dividend Equity ETF (SCHD) has undergone a major portfolio reconstitution, increasing its exposure to energy (16%), consumer defensive (19%), and healthcare sectors while reducing weight in financials and maintaining tech exposure on par with peers. This strategic shift aims to capitalize on elevated inflation and ongoing geopolitical tensions, such as the Iran conflict, which could benefit these sectors and potentially boost SCHD's returns in 2026. While the concentrated sector bets increase idiosyncratic risk, SCHD's new positioning offers a hedge against prolonged inflation and a chance to outperform in value equities.
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...
