Average Daily Volume
17.81M
Fund Overview
The Schwab U.S. Dividend Equity ETF (SCHD) is an exchange-traded fund that seeks to track the performance of the Dow Jones U.S. Dividend 100 Index. This index focuses on high-quality U.S. dividend-paying stocks with a track record of consistent dividend payments and strong financial health. SCHD primarily invests in large-cap value stocks, making it a popular choice for income-focused investors seeking stable returns and dividend growth. The fund is known for its low expense ratio and strong historical performance, making it a core holding in many dividend investment strategies.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 3.74 %
- Currency Hedged
-
No
- Portfolio Turnover
-
29 %
- Dividend Date
-
Why Invest in the SCHD ETF?
Potential Benefits
- Focuses on high-quality, financially stable companies with a history of consistent dividend payments.
- Low expense ratio (0.06%) compared to many peers, enhancing net returns for investors.
- Provides exposure to large-cap U.S. dividend stocks, offering a balance of income and growth potential.
- Historically strong performance with competitive total returns relative to other dividend-focused ETFs.
- Rebalanced annually to maintain focus on top dividend-paying stocks, ensuring portfolio quality.
Potential Risks
- Concentrated in large-cap stocks, which may underperform during small-cap or growth-driven market rallies.
- Dividend payments are not guaranteed and can be cut or suspended by underlying companies.
- Sector concentration risk, with significant exposure to financials, healthcare, and consumer staples.
- Interest rate sensitivity, as dividend stocks may underperform in rising rate environments.
- Market risk, as the fund is subject to broader equity market volatility despite its income focus.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+8.7%
|
+6.5%
|
-2.6%
|
+4.5%
|
+1.3%
|
-1.7%
|
+5.6%
|
+4.2%
|
-6.0%
|
+1.0%
|
-
|
-
|
| 2025 |
+1.9%
|
+2.6%
|
-1.2%
|
-7.7%
|
+1.4%
|
+2.3%
|
0.0%
|
+5.4%
|
-1.3%
|
-2.0%
|
+3.1%
|
+0.4%
|
| 2024 |
+0.1%
|
+1.8%
|
+4.7%
|
-4.5%
|
+2.1%
|
0.0%
|
+6.2%
|
+2.4%
|
+0.9%
|
+0.2%
|
+4.6%
|
-6.6%
|
| 2023 |
+2.1%
|
-3.3%
|
-1.0%
|
-0.8%
|
-4.1%
|
+5.3%
|
+4.2%
|
-1.5%
|
-4.2%
|
-3.8%
|
+6.3%
|
+6.3%
|
| 2022 |
-2.7%
|
-1.9%
|
+3.0%
|
-4.1%
|
+3.9%
|
-8.0%
|
+3.9%
|
-2.7%
|
-7.4%
|
+11.2%
|
+6.8%
|
-3.4%
|
| 2021 |
-0.9%
|
+6.1%
|
+8.9%
|
+2.2%
|
+3.2%
|
-1.0%
|
+0.6%
|
+2.1%
|
-3.7%
|
+4.4%
|
-2.1%
|
+7.3%
|
| 2020 |
-1.8%
|
-9.3%
|
-11.9%
|
+12.6%
|
+3.7%
|
-0.6%
|
+5.3%
|
+5.1%
|
-2.5%
|
+0.4%
|
+13.2%
|
+3.1%
|
| 2019 |
+6.0%
|
+4.1%
|
+1.6%
|
+3.2%
|
-7.6%
|
+7.3%
|
+1.7%
|
-1.3%
|
+3.8%
|
+1.4%
|
+2.8%
|
+2.3%
|
| 2018 |
+4.6%
|
-5.6%
|
-2.4%
|
-1.1%
|
+1.8%
|
+0.7%
|
+4.5%
|
+2.3%
|
+1.2%
|
-5.9%
|
+3.4%
|
-8.1%
|
| 2017 |
-0.5%
|
+3.4%
|
+0.1%
|
+0.2%
|
+1.7%
|
-0.1%
|
+1.7%
|
0.0%
|
+2.8%
|
+3.6%
|
+4.2%
|
+1.9%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
VZ
|
VERIZON COMMUNICATIONS INC |
4.5 % |
|
KO
|
COCA-COLA CO |
4.4 % |
|
MO
|
ALTRIA GROUP INC |
4.2 % |
|
COP
|
CONOCOPHILLIPS |
4.2 % |
|
LMT
|
LOCKHEED MARTIN CORP |
4.2 % |
|
PEP
|
PEPSICO INC |
4.1 % |
|
CVX
|
CHEVRON CORP |
4.1 % |
|
BMY
|
BRISTOL-MYERS SQUIBB CO |
4.0 % |
|
AMGN
|
AMGEN INC |
4.0 % |
|
HD
|
THE HOME DEPOT INC |
3.9 % |
Top 10 holdings shown, out of 101 total holdings.
Related ETFs: SCHD vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SCHD tracks the Dow Jones U.S. Dividend 100 Index, which selects high-dividend-yielding U.S. stocks based on stringent criteria, including dividend growth, payout ratios, and financial strength. The index is weighted by market capitalization, emphasizing larger, more stable companies. The fund primarily holds common stocks and is rebalanced annually to ensure alignment with the index's objectives. SCHD's strategy focuses on quality and sustainability, avoiding companies with excessive debt or inconsistent dividend histories.
Frequently Asked Questions
What is SCHD's dividend yield?
SCHD's dividend yield varies but has historically ranged between 3-4%, reflecting its focus on high-quality dividend-paying stocks.
How often does SCHD pay dividends?
SCHD pays dividends quarterly, aligning with the typical distribution schedule of most U.S. dividend stocks.
Does SCHD include international stocks?
No, SCHD focuses exclusively on U.S.-listed companies that meet its dividend and financial health criteria.
Is SCHD a good ETF for retirement accounts?
Yes, SCHD's focus on income and stability makes it a popular choice for tax-advantaged retirement accounts like IRAs.
How does SCHD select its holdings?
SCHD tracks an index that screens for companies with strong dividend histories, sustainable payout ratios, and robust financials, ensuring a high-quality portfolio.
Industry Overview
The Schwab U.S. Dividend Equity ETF (SCHD) is part of the dividend-focused ETF category, which appeals to investors seeking income and stability. Dividend ETFs like SCHD invest in companies with strong cash flows and a history of returning capital to shareholders. This sector is particularly attractive during periods of market uncertainty or low interest rates, as dividends can provide a steady income stream. SCHD stands out for its focus on high-quality, financially sound companies, making it a core holding for long-term investors prioritizing dividend growth and capital preservation.
Alternative Comparison
Compared to peers like VYM and DVY, SCHD stands out for its stricter quality filters, focusing on companies with strong dividend growth and financial health. While VYM offers broader exposure to high-yield stocks, SCHD's methodology results in a more selective portfolio. DVY, another competitor, has a higher expense ratio and slightly different sector allocations. SCHD's low expense ratio and consistent performance make it a competitive choice for investors prioritizing both yield and quality.
Issuer Overview
SCHD is issued by Charles Schwab Investment Management, a subsidiary of The Charles Schwab Corporation. Schwab is a well-established financial services firm known for its low-cost investment products and client-focused approach. The issuer has a strong reputation for transparency, reliability, and innovation in the ETF space, offering a range of funds that cater to various investment strategies.
Conclusion
SCHD is a top-tier dividend ETF, offering exposure to high-quality U.S. dividend stocks with a focus on sustainability and growth. Its low cost, strong historical performance, and disciplined investment strategy make it a compelling option for income-focused investors. While it carries typical equity market risks, its emphasis on financially stable companies helps mitigate some downside potential, making it a reliable core holding for long-term portfolios.
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