TFC - SCHD: There's Almost Never Any Reason To Own This ETF
2024-06-03 00:05:50 ET
Summary
- I maintain a bearish view on the Schwab U.S. Dividend Equity ETF and believe it will underperform the broader market.
- The composition of SCHD has changed, with financial and energy stocks becoming a larger portion of the ETF.
- Alternative ETFs, such as the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust ETF, have outperformed SCHD in terms of total return.
Those who read my work regularly might know that I am not a fan of certain investment products. Late last year, in September, as an example, I wrote a bearish article about the Schwab U.S. Dividend Equity ETF ( SCHD ). For many investors, this ETF is an attractive way to generate yield. It is also clear that it is an ETF that many investors love. Because while I received plenty of positive comments about that article, I also received plenty of comments from readers who disagreed with my decision to rate it a 'sell'....
SCHD: There's Almost Never Any Reason To Own This ETF