The Schwab U.S. Dividend Equity ETF Has Surged 15% to Start 2026. Here's the Secret Fuel Source Driving the Rally.

2026-02-21 12:27:00 ET

The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is one of the largest and most popular ETFs focused on dividend stocks. The fund offers a high current income yield (3.5% over the last 12 months). It has also delivered robust returns over the years.

While the fund delivered an underwhelming performance last year -- it only generated a 0.4% return -- it has gone hyperbolic in early 2026, surging nearly 15%. That has vastly outperformed the S&P 500 's less than 1% rise this year. Here's the secret fuel source driving its outperformance.

Image source: Getty Images.

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