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Dividend ETF SCHD outperformed S&P 500 in 1 year but lagged over 5 years, showing trade-offs of income investing.

Market News
06 Oct 2026
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Dividend ETF SCHD outperformed S&P 500 in 1 year but lagged over 5 years, showing trade-offs of income investing.

The Schwab U.S. Dividend Equity ETF (SCHD) returned 23.86% over the past year, beating the S&P 500 ETF (VOO) which returned 17.05%. However, over five years, SCHD grew $300,000 to $468,150, trailing VOO's $573,900, a $105,750 shortfall. SCHD focuses on dividend-paying companies, excluding top tech stocks that drove the S&P 500's growth, explaining its lag over the longer term. This highlights the trade-off income investors face: steady dividend income versus higher growth potential. SCHD suits retirees seeking income now, but long-term investors should compare dividend funds carefully against broad indexes before investing.

SCHD trades at USD 32.88 with a 1-day gain of 0.49% and a market cap of $108.75 billion on Pluang as of Oct 07, 2026 07:21 WIB. This steady performance aligns with its focus on dividend-paying companies, contrasting with the broader growth seen in the S&P 500. Investors on Pluang show strong buying interest in SCHD, with 88% of order activity on the buy side, reflecting its appeal for income-focused portfolios.

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