TXN - Invest (Nearly) Stress-Free With SCHD
2024-06-21 16:51:47 ET
Summary
- Schwab U.S. Dividend Equity ETF™ is a conservative fund that offers stable growth and dividend growth, not suitable for high-growth or high-yield investors. It is too boring for you.
- The SCHD ETF holds 103 diversified holdings, with the top sectors being financials, healthcare, and technology.
- Top 5 holdings are all long-term investment opportunities with consistent dividend growth.
- There is reason to believe the top 5 holdings can rally, carrying the SCHD ETF higher.
- Critics are welcome to voice their concerns.
In this column, we provide a quarterly update on the Schwab U.S. Dividend Equity ETF™ ( SCHD ). This is an exchange-traded fund, or ETF, and it is not at all exciting or sexy in any way. This is not a get-rich-quick name, but it is also an ETF that you won't lose your shirt in, barring a market collapse/severe correction, in which case, everyone will lose money on paper who is long equities.
We still do not understand the "hate" that this ETF takes. We suppose the argument that it underperforms other assets is a legitimate, but we argue that this ETF does a fantastic job as it was designed to do, be relatively stable while tracking pretty closely the Dow Jones 100 Dividend Index. It is a conservative investment. While it offers a growing dividend over time, those who chase yield at all costs (which is a poor strategy without doing serious homework) will not like this ETF....
Invest (Nearly) Stress-Free With SCHD