2024-07-08 15:03:43 ET
Summary
- The Schwab U.S. Dividend Equity Fund ETF is a highly popular Exchange-Traded Fund. This has led to impressive AUM growth for Schwab's benefit.
- SCHD has underperformed other large dividend ETFs, but that's largely attributable to a lower technology sector weighting. I view the sector diversification positively.
- However, SCHD is highly concentrated compared to peers, so investors may wish to study the top ~dozen holdings in assessing whether this is the ETF for you.
- I rate SCHD a Hold.
The Schwab U.S. Dividend Equity Fund ETF ( SCHD ) seems to be as popular as Taylor Swift, dad jokes, and ripped jeans (if you wear them, please DM me). Everybody has an opinion, and the ETF is highly discussed and highly covered here at SA. If I followed SCHD in my Seeking Alpha portfolio, the flurry of alerts might cause me to overlook a bill payment notification. It's interesting that the Vanguard Dividend Appreciation Index ETF ( VIG ), the only larger Dividend ETF on the planet, which has steadily outperformed SCHD (YTD, and multi-year) has only been covered three times in the past month and a half. Anyway, if you're popular, you're popular, and if you're not, you're not....
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SCHD: Cult Status Aside, It's A Reasonable Hold