Launched on December 2, 2015, the SPDR Russell 1000 Yield Focus ETF (ONEY) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.The fund is sponsored by State Street Investment Management. It has amassed assets over $904.23 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueCompanies that fall in the large cap category tend to have a mark ...

Core Insights - The Schwab U.S. Dividend Equity ETF (SCHD) has gained popularity, with total assets exceeding $70 billion, but it has underperformed compared to the market and particularly against tech-heavy indices [1] Group 1 - SCHD's total assets have increased significantly, reaching over $70 billion [1] - Despite its popularity, SCHD has significantly underperformed the market, especially in comparison to tech-heavy indices [1]

The Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD ) remains a quite popular dividend growth-focused ETF, with a continued path of upward total assets under management at a rather brisk pace. The fund isInterested in more income ideas? Check out Cash Builder Opportunities, where we provide ideas about high-quality and reliable dividend growth ideas. These investments are designed to build growing income for investors. A special focus on investments that are leaders within their industry to provide stabilit ...

Investing in quality dividend ETFs can offer a great way to boost your portfolio returns.Dividends can be a great way to boost your overall portfolio returns and generate capital to save, reinvest, or otherwise put to work as you desire. You can choose shares of individual income stocks or use dividend exchange-traded funds (ETFs) that provide access to an entire basket of dividend stocks.If you're considering dividend ETFs for your portfolio right now and have $1,000 to put to work, here are two options to ...

Core Insights - The article emphasizes the importance of selecting income-generating investments that are reliable and sustainable, rather than chasing high yields that may not be sustainable in the long term [2][3] Investment Strategies - Generating recurring income can enhance portfolio value and provide cash flow without selling stocks, which can be used for various financial needs [1] - Investing in exchange-traded funds (ETFs) is recommended for those seeking safe recurring income, as they offer diversification and lower risk compared to individual stocks [3] Schwab U.S. Dividend Equity ETF - The Schwab U.S. Dividend Equity ETF focuses on low costs, fundamental strength, and quality dividends, with an expense ratio of 0.06%, making it suitable for long-term investing [5] - The fund holds 103 stocks, prioritizing quality over sheer diversification, and averages a yield of around 3.9%, which is higher than the S&P 500 average of 1.2% [6][7] - Despite a 1% decline in the past year, the total return including dividends is above 2%, and over five years, total returns exceed 70% [8] iShares Core High Dividend ETF - The iShares Core High Dividend ETF is more selective, focusing on 75 high-dividend stocks, with a yield of 3.5% and an expense ratio of 0.08% [9][12] - The top three holdings—ExxonMobil (8.5%), Johnson & Johnson (6.7%), and AbbVie (5.8%)—account for 21% of the portfolio, indicating less diversification but potentially higher returns from major positions [10][11] - This ETF has seen a 6% increase in value this year, with a total return of nearly 8% when including dividends [13]

Core Insights - The Vanguard Value ETF (VTV) is highlighted as a preferable investment option over the Vanguard S&P 500 ETF (VOO) for those seeking passive income and better valuation [4][16] - The S&P 500 has seen a decline in yield, currently at 1.2%, while the Vanguard Value ETF offers a higher yield of 2.2% [3][6] Expense Ratios - The Vanguard S&P 500 ETF has an expense ratio of 0.03%, while the Vanguard Value ETF has a slightly higher expense ratio of 0.04% [2][6] - The minimal difference in fees translates to just one cent more per $100 invested in the Value ETF compared to the S&P 500 ETF [6] Yield and Valuation - The Vanguard Value ETF provides a 30-day SEC yield of 2.2%, significantly higher than the S&P 500 ETF's yield of 1.2% [6] - The price-to-earnings (P/E) ratio for the Value ETF is 19.6, compared to 27.2 for the S&P 500 ETF, indicating a more attractive valuation for the Value ETF [7] Composition and Holdings - The Vanguard Value ETF holds 335 stocks, while the S&P 500 ETF has 505 holdings, with a more concentrated top-heavy structure in the S&P 500 [7][11] - The top holdings of the Value ETF include Berkshire Hathaway (4%) and JPMorgan Chase (3.6%), while the S&P 500 ETF is dominated by companies like Nvidia (7.3%) and Microsoft (7%) [10] Performance and Returns - Over the last decade, the Vanguard Value ETF has increased by 111.5%, with a total return of 173.5%, indicating strong capital gains [12] - The investment strategy of the Value ETF focuses on the quality of companies held rather than solely on yield, contrasting with other ETFs that prioritize passive income [12][17] Market Positioning - The Vanguard Value ETF is positioned as a strong option for investors looking to diversify their portfolios and achieve higher passive income compared to the S&P 500 [16] - The ETF is recommended for those already invested in top growth stocks and seeking to balance their investments with value-oriented options [16]

Core Viewpoint - The Schwab U.S. Dividend Equity ETF focuses on high-quality, high-yielding dividend stocks, which have historically outperformed non-dividend payers by more than two to one over the past 50 years, delivering a 10.2% average annualized return [1][2]. Group 1: ETF Strategy and Performance - The ETF aims to closely track the Dow Jones U.S. Dividend 100 Index, which measures the performance of 100 top high-quality, high-yielding U.S. dividend stocks [4]. - The index's 100 holdings had an average dividend yield of 3.8% and increased their payouts at an average annual rate of 8.4% over the past five years, positioning the ETF for attractive total returns [4]. - The Schwab U.S. Dividend Equity ETF has delivered double-digit annualized total returns over the past five- and ten-year periods, with an 11.5% annualized total return since its inception in late 2011 [12]. Group 2: Key Holdings - Chevron is the top holding in the ETF, accounting for 4.4% of its net assets, with a 4.5% dividend yield and a history of increasing dividends for 38 consecutive years [7][8]. - PepsiCo is another significant holding, representing 4.2% of the fund's assets, with a 4% dividend yield and a 53-year streak of dividend increases [9]. Group 3: Dividend Characteristics - The ETF currently offers a dividend yield of around 3.8%, which is more than three times higher than the S&P 500, providing a strong and growing base return as its holdings increase their dividend payments [13]. - The ETF's focus on companies with strong financial profiles supports the sustainability of high-yielding and steadily rising dividends [15].

Core Viewpoint - The Schwab U.S. Dividend Equity ETF (SCHD) is highlighted as an attractive option for generating passive income through dividends while also offering potential for capital appreciation [2][5]. Group 1: Dividend Investing - Dividend-paying stocks have historically provided strong returns, with dividend growers and initiators averaging a total return of 10.24% from 1973 to 2024, compared to 4.31% for non-payers [4]. - The performance of dividend-paying stocks is attributed to the necessity for companies to maintain stable income to commit to regular dividend payments [4]. Group 2: Schwab U.S. Dividend Equity ETF Features - The Schwab U.S. Dividend Equity ETF offers a solid dividend yield of 3.9% and tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-dividend-yielding stocks with a history of consistent dividend payments [6]. - The ETF has a low expense ratio of 0.06%, meaning an annual fee of $6 for every $10,000 invested, making it cost-effective for investors [6]. Group 3: Top Holdings - The ETF's top 10 holdings account for approximately 40% of its value, with significant dividend yields from companies like Altria Group (6.86%) and Verizon Communications (6.31%) [7]. - These holdings are expected to maintain or increase their dividend payouts as long as they remain financially healthy [7]. Group 4: Performance Comparison - Over the past 3, 5, and 10 years, the Schwab U.S. Dividend Equity ETF has shown average annual gains of 8.14%, 12.54%, and 11.39% respectively, which is lower than the Vanguard S&P 500 ETF's performance but offers higher income [8]. - Investors may consider allocating funds to both the Schwab ETF for income and the S&P 500 ETF for growth, as both can provide long-term passive income [8].

Core Viewpoint - The Schwab U.S. Dividend Equity ETF (SCHD) is presented as a strong option for generating passive income through dividends, with a focus on long-term holding for consistent returns. Group 1: ETF Overview - The Schwab U.S. Dividend Equity ETF aims to track the Dow Jones U.S. Dividend 100 Index and currently holds 103 stocks, including major companies like Texas Instruments, Chevron, and Cisco Systems [3] - The ETF has a strong track record, with its distribution increasing by 541% since its inception on October 20, 2011, equating to a compound annual growth rate of approximately 14% [4] Group 2: Performance Metrics - Over the past 12 months, the ETF has delivered a distribution yield of 3.87%, with a 30-day SEC yield of 3.85%, meaning a $100,000 investment could generate annual income of $3,850 [5] - The ETF has achieved an average annual return of 12.3% since inception and 12.9% over the last five years [8] Group 3: Risk and Valuation - The ETF is considered relatively low risk, focusing on high-yield dividend stocks with a history of consistent dividend payments and strong financials [6][7] - The average stock in the ETF trades at under 16 times trailing 12-month earnings, which is significantly lower than the S&P 500's price-to-earnings multiple of nearly 30 [7] Group 4: Cost and Liquidity - The ETF has a low annual expense ratio of 0.06%, reflecting its passive management approach [8] - The total net assets of the ETF exceed $70.2 billion, with an average daily trading volume of approximately 16 million shares, ensuring high liquidity [9] Group 5: Comparative Analysis - While other dividend ETFs may offer higher yields, such as the SPDR Portfolio S&P 500 High Dividend ETF at nearly 4.5% and the JPMorgan Nasdaq Premium Equity Income ETF at 11.3%, the Schwab U.S. Dividend Equity ETF is noted for its reliability and potential for distribution growth [10][11] - The ETF is positioned as one of the top dividend ETFs in the market, excelling in reliability, distribution growth potential, and overall returns [11]

Core Insights - The Schwab U.S. Dividend Equity ETF (SCHD) has seen significant inflows, currently managing $70.1 billion in assets, making it one of the largest ETFs focused on dividend-paying stocks [2][4] - The fund has outperformed its peers in terms of capital inflows, with a 24% growth in its asset portfolio over the past year, compared to 5% for the iShares Core Dividend Growth ETF [4] - While the fund has underperformed the S&P 500 in terms of price gains over the last decade, it offers a higher average dividend yield of 3.1%, leading to a robust total return of 11.1% per year when dividends are reinvested [5][8][7] Fund Performance - The Schwab U.S. Dividend Equity ETF's average annual price gain over the last decade was 7.6%, compared to the S&P 500's 11.5% [5] - The fund's performance period includes significant events such as presidential elections, the COVID-19 pandemic, and inflation cycles, providing a representative view of long-term results [6] - The current dividend yield of the fund is above average at 4%, making it an attractive option for income-focused investors [10] Investment Considerations - The fund's largest holdings include established companies like Coca-Cola, The Home Depot, and Chevron, which are expected to provide consistent dividend payouts [10] - The Schwab U.S. Dividend Equity ETF has a low annual expense ratio of 0.06%, making it a cost-effective investment option [11] - The current period of lagging price performance may present a favorable opportunity for investors to consider adding this ETF to their portfolios [12]