Bonds play an important role in portfolios. They spin off reliable income and provide ballast when stocks sink. But bonds are not without risk.Some can be whipsawed by interest rate volatility or credit conditions. While 2022 was an anomaly, it showed that bonds are not risk-f free and don't always provide the balance they're supposed to. That year, interest rates shot up and clobbered most intermediate and long-term bond strategies.The broad-based iShares Core US Aggregate Bond ETF, ticker EG, lost 13% tha ...

The Schwab US Dividend Equity ETF (NYSEARCA:SCHD) is one of the largest and most commonly held in the US, but investors are starting to sour on the ETF in October. ...

Roughly half of all U.S. stocks pay dividends, making it a huge investable universe, with this one ETF letting you buy the best of the best.The U.S. market is huge, with a combined market cap of around $63 trillion. There are all sorts of different ways you can slice and dice the U.S. stock market, with the top ETFs offering plenty of variety. But if you are a dividend lover, you are only interested in about half of the total universe, which cuts your investable universe down to "just" $30 trillion or so.If ...

Schwab US Dividend Equity ETF TodaySCHDSchwab US Dividend Equity ETF$27.10 -0.11 (-0.40%) 52-Week Range$23.87▼$29.72Dividend Yield3.80%Assets Under Management$71.29 billionAdd to WatchlistFinancial markets are all about rotation. Not all assets move together, and money constantly shifts based on where investors see the best balance of risk and reward. With the Federal Reserve cutting rates in September 2025, many expect high-yielding assets to gain traction in the coming months. One of the most popular des ...

Core Viewpoint - Schwab US Dividend Equity ETF (SCHD) offers a 3.7% dividend yield, which, while lower than some competitors, presents a compelling investment opportunity due to its focus on quality and growth rather than just yield [2][6]. Group 1: Yield Comparison - The S&P 500 index currently yields around 1.2%, making SCHD's yield nearly three times larger [3]. - Invesco High Yield Equity Dividend Achievers ETF offers a higher yield of approximately 4.5%, which may attract yield-focused investors [3][6]. - A 4% yield is often considered a key threshold for retirement income, as it allows for sustainable withdrawals without depleting principal [5]. Group 2: Investment Strategy - Schwab US Dividend Equity ETF employs a nuanced investment strategy, focusing on stocks that have increased dividends for at least a decade, rather than simply selecting high-yield stocks [8][9]. - The ETF evaluates stocks based on a composite score that includes cash flow to total debt, return on equity, dividend yield, and five-year dividend growth [9]. - The ETF's approach has resulted in a generally rising dividend and share price, contrasting with the more yield-focused strategy of Invesco, which may lead to less attractive dividend growth [11]. Group 3: Long-term Considerations - Dividend growth is crucial for maintaining purchasing power against inflation, and over time, SCHD may provide more income than higher-yielding ETFs that lack growth [12][13]. - Including SCHD in a portfolio alongside higher-yielding options can offer protection against inflation while providing a solid long-term investment strategy [13].

Core Viewpoint - The Schwab US Dividend Equity ETF (SCHD) offers a convenient investment option for dividend investors, allowing them to benefit from a diversified portfolio without the need for extensive stock-picking efforts [2][10]. Group 1: ETF Overview - The Schwab US Dividend Equity ETF is an index-tracking fund that follows the Dow Jones U.S. Dividend 100 index, which includes stocks that have increased dividends for at least 10 consecutive years [3][4]. - The index excludes real estate investment trusts (REITs) and uses a composite score based on metrics such as cash-flow-to-total-debt ratio, return on equity, dividend yield, and five-year dividend growth to select the top 100 companies [5][6]. Group 2: Investment Appeal - The ETF provides a dividend yield of approximately 3.9%, which, while not the highest available, offers a well-diversified portfolio that combines both income and growth potential [7][8]. - The expense ratio of the Schwab US Dividend Equity ETF is notably low at 0.06%, making it an attractive option given the comprehensive screening and management it provides [10]. Group 3: Market Position - Although the ETF has recently lagged behind the S&P 500 index, it remains a suitable choice for dividend-focused investors, especially since many of the S&P 500's gains are driven by large technology companies that typically do not offer high yields [11][12].

Group 1 - The SPDR Portfolio S&P 500 High Dividend ETF and Schwab US Dividend Equity ETF serve different investment goals, with the former focusing on high yield and the latter on quality dividend growth [2][4][6] - The SPDR Portfolio S&P 500 High Dividend ETF targets the 80 stocks with the highest yields from the S&P 500 index, using an equal weighting methodology, and currently has a yield of approximately 4.5% [4][8] - The Schwab US Dividend Equity ETF selects companies that have increased dividends for at least 10 consecutive years, using a composite score based on various financial metrics, and has a yield of around 4% [5][6][8] Group 2 - The SPDR Portfolio S&P 500 High Dividend ETF is limited to the S&P 500 index, leading to a concentration in sectors like real estate, utilities, and finance, and may include out-of-favor companies [9] - The Schwab US Dividend Equity ETF has a broader selection process, focusing on financially strong companies with growth potential, which allows for diversification beyond the sectors targeted by the SPDR ETF [10] - Combining both ETFs in a portfolio can enhance diversification and potentially improve overall performance, as different investment approaches may perform variably over time [11][12]

Core Viewpoint - The Schwab US Dividend Equity ETF (SCHD) has underperformed in recent years, leading to frustration among investors despite its potential as a strong dividend ETF that offers stability and diversification outside of technology [1][2]. Group 1: Performance Analysis - SCHD has shown underperformance attributed to its diversification strategy and lack of exposure to the technology sector [2]. - The ETF is recognized for providing a stable high yield and growing dividends, which are essential for portfolio stability [1]. Group 2: Future Outlook - An analysis is being conducted to determine whether SCHD is a buy, sell, or hold at current levels, indicating ongoing evaluation of its investment potential [2].