In December, I Picked the Schwab U.S. Dividend Equity ETF as My Top High-Yield ETF to Buy, and It's Already Up 15% in 2026. Here's Why It's Still a Buy Now.

Core Viewpoint - The Schwab U.S. Dividend Equity ETF (SCHD) has seen a significant increase of 14.7% in value early in the year, outperforming the S&P 500, which only rose by 1.3% [1] Investment Characteristics - The ETF offers a high yield of 3.5%, which was over 4% at certain points last year, and has a low expense ratio of 0.06%, equating to $6 for every $10,000 invested [2] - It is unique in being 100% invested in stocks, focusing on sectors with industry-leading companies that prioritize returning capital to shareholders through dividends [3] Sector Allocation - A substantial 54.6% of the ETF is allocated to the energy, consumer staples, and healthcare sectors, compared to only 17.6% in the S&P 500 [4] - The energy sector constitutes 19.9% of the ETF and has been outperforming the S&P 500 in 2026, while technology and communications sectors have faced minor sell-offs [6] Diversification and Holdings - The ETF is heavily concentrated in large-cap stocks, with approximately 90% of its investments in companies with market caps of at least $15 billion, ensuring a well-balanced portfolio across industry leaders [7]