SCHD: Please Know What You Own

(8min)

Summary

  • SCHD is a conservative, diversified ETF best suited for risk-averse investors seeking stable, growing dividends and less downside in tough markets.
  • The fund's sector allocation, especially its current overweight to energy, drives short-term performance swings, but overall it remains broadly diversified.
  • SCHD consistently lags high-growth ETFs like SPY in bull markets but offers better downside protection and income, making it ideal as a core, not sole, holding.
  • While criticisms about underperformance are valid, SCHD's near 4% yield and stability make it a solid choice for those prioritizing income and peace of mind.
  • I do much more than just articles at BAD BEAT Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
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The Schwab U.S. Dividend Equity ETF™ (NYSEARCA:SCHD) is a surprisingly controversial fund that we have covered a few times in the last year. It should not be so controversial. Our opinion? If you think this ETF is an underperformer, or a

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of SCHD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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About SCHD ETF

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