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SCHD ETF outperforms broader markets 2.4x in 2026, trading at attractive valuations with defensive sector tilt.

Market News
28 Jul 2026
Seeking Alpha
View Source
Neutral
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The Schwab US Dividend Equity ETF (SCHD) is outperforming the broader market by 2.4 times in 2026 and is at lifetime high prices. It maintains a sensible sector exposure, favoring defensive sectors while limiting exposure to rate-sensitive and crowded tech sectors. SCHD trades at a significant discount to the broader market on price-to-book and price-to-earnings ratios, suggesting attractive valuations. However, cautious investors may note a balanced risk-reward profile and slower positive fund flows, which could temper enthusiasm for adding new positions at current levels.

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