Schwab US Dividend Equity ETF™ Overview
Schwab US Dividend Equity ETF™ (SCHD) is a passively managed U.S. Equity Large Value exchange-traded fund (ETF). Schwab ETFs launched the ETF in 2011.
The investment seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100™ Index. To pursue its goal, the fund generally invests in stocks that are included in the index. The index is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The fund will invest at least 90% of its net assets in these stocks.
About Schwab US Dividend Equity ETF™ (SCHD)
There are 4 members of the management team with an average tenure of 6.91 years: Christopher Bliss (2017), Ferian Juwono (2011), Jeremy Brown (2018) and Agnes Zau (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: DJ US Dividend 100 TR USD index with a weighting of 100%. Schwab US Dividend Equity ETF™ has 103 securities in its portfolio. The top 10 holdings constitute 41.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Schwab US Dividend Equity ETF™ is part of the Equity global asset class and is within the U.S. Equity ETF group. Schwab US Dividend Equity ETF™ has 0.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.2% There is 0.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Schwab US Dividend Equity ETF™ has 0.1% of the portfolio in cash.
Assets Under Management
Schwab US Dividend Equity ETF™ has a trailing dividend yield of 3.35%, which is above the 2.13% category average. The fund normally distributes its dividend income quarterly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
SCHD Performance and Fees
High portfolio turnover can translate to higher expenses and lower aftertax returns. Schwab US Dividend Equity ETF™ has a portfolio turnover rate of 28%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 63% for the Large Value category.
Recently, in the month of August 2024, Schwab US Dividend Equity ETF™ returned 2.3%, which earned it a grade of C, as the Large Value category had an average return of 2.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Schwab US Dividend Equity ETF™ Grades
Year to date, the ETF has returned 13.1%, 2.0 percentage points worse than the category, which translates into a grade of D. The fund has returned 17.7% over the past year (grade of F), 6.6% over the past three years (grade of F) and 13.6% per year over the past five years (grade of B) and 11.6% per year over the past 10 years (grade of A).
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