The Schwab U.S. Dividend Equity ETF (SCHD) recently completed its annual index reconstitution, removing 22 stocks and adding 25 new ones, including some that have underperformed recently. This mechanical, rules-based process sells stocks whose prices have risen and dividend yields fallen, replacing them with higher-yielding, stronger dividend-growth companies. Despite the counterintuitive move of selling winners and buying laggards, the changes aim to enhance long-term income and capital appreciation. SCHD remains a reliable choice for income investors due to its disciplined strategy and consistent performance over nearly 15 years.
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...
