Don't Miss Out on This $30-Trillion Dollar Sector: The Top ETF to Buy

Core Viewpoint - The Schwab US Dividend Equity ETF (SCHD) is highlighted as a top choice for dividend investors, providing access to a curated selection of high-quality dividend-paying stocks within a vast market of U.S. equities valued at approximately $63 trillion, with a focus on the $30 trillion subset of dividend stocks [1][2]. Group 1: ETF Overview - Schwab US Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, effectively mimicking the index's performance [3]. - The ETF narrows down the investable universe by selecting stocks that have increased dividends for at least 10 years and excludes real estate investment trusts (REITs) [4]. - A composite score is created for each company based on cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate, with the top 100 companies included in the ETF [5]. Group 2: Investment Strategy - The ETF employs a market cap weighting approach, meaning larger companies have a greater impact on performance, and the holdings are updated annually [6]. - The expense ratio of the ETF is notably low at 0.06%, making it a cost-effective option for investors [6]. Group 3: Performance and Yield - The ETF has shown a consistent upward trend in both dividends and market price since its inception in October 2011, currently offering a dividend yield of approximately 3.7%, which is significantly higher than that of the S&P 500 index [9]. - The ETF's structure allows for a "one and done" investment approach, where investors can rely on the ETF to manage its portfolio over time without needing to actively monitor individual holdings [10]. Group 4: Target Audience - Schwab US Dividend Equity ETF is positioned as an ideal investment for those who prioritize dividends, focusing on quality companies with attractive yields and a history of dividend growth [11].