2024-05-13 12:10:50 ET
Summary
- The Schwab US Dividend Equity ETF (SCHD) is a decent dividend ETF choice but is overrated due to past performance-driven buying.
- The surge in assets into SCHD is likely a result of recency bias and marketing rather than its exceptional performance.
- SCHD is not a "bored ape" and should be recognized for what it is: a solid plug-in for yield, valuation, and total return growth potential.
The Schwab US Dividend Equity ETF ( SCHD ) is living off of the reputation it gained as a "best in class" dividend ETF during a limited period of time. That doesn't make it a bad fund to own. I'd place it solidly in a group of ETFs that I have alluded to briefly in this article, since the focus here is on the pros, cons and specifically the dangers I see from the gushing compliments SCHD receives from Seeking Alpha readers and elsewhere....
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For further details see:
SCHD: Overrated Dividend ETF, Lots Of Downside Risk