1 Top ETF I Plan to Load Up on This Month
The Motley Fool·2026-02-01 13:15

Core Viewpoint - The Schwab U.S. Dividend Equity ETF (SCHD) is highlighted as a strong investment option for generating passive income through dividends, with a focus on its performance and growth potential [1][6]. Group 1: ETF Strategy and Performance - The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, which includes 100 high-quality, high-yielding dividend stocks, selected based on dividend quality characteristics [2]. - Over the past 12 months, the ETF's distribution yield averaged 3.8%, significantly higher than the S&P 500's yield of 1.1%, indicating a more favorable income generation potential [3]. - The current holdings of the ETF have increased their dividends by an average of over 8% per year in the last five years, outpacing the S&P 500's growth rate of 5% [5]. Group 2: Financial Metrics and Returns - The Schwab U.S. Dividend Equity ETF has delivered a 12.3% average annualized total return since its inception in 2011, showcasing its strong performance over time [6]. - The current price of the ETF is $29.80, with a day's range between $29.39 and $29.81, and a 52-week range from $23.87 to $29.82 [4][5].