Core Viewpoint - The S&P 500 is near all-time highs, but this should not deter long-term investment strategies. Building wealth takes time, and starting now is crucial. The Schwab US Dividend Equity ETF (SCHD) is presented as a viable investment option [1]. Group 1: Schwab US Dividend Equity ETF Overview - The Schwab US Dividend Equity ETF is an exchange-traded fund that tracks the Dow Jones U.S. Dividend 100 Index, focusing on companies with a strong history of dividend increases [2]. - The index selects companies that have at least 10 consecutive years of annual dividend increases, excluding real estate investment trusts to focus on well-managed firms [3]. - A composite score for each company is created based on factors like cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate, aiming to identify financially strong companies with growing dividends [4]. Group 2: Index Composition and Management - The index includes the 100 highest-ranked companies based on market capitalization, ensuring that larger companies have a more significant impact on performance. The portfolio is updated annually to reflect the best stocks according to the index's criteria [5]. - The ETF offers a low expense ratio of 0.06%, making it an attractive option for investors seeking dividend income [5]. Group 3: Investment Strategy and Timing - Wealth accumulation is emphasized as a long-term endeavor requiring patience. Despite the current market conditions, the dividend-focused ETF has been underperforming, suggesting that now is an opportune time to invest [6]. - The Schwab US Dividend Equity ETF simplifies the investment process for dividend investors by providing a diversified portfolio of dividend stocks in a single purchase [7].

Core Viewpoint - The Schwab US Dividend Equity ETF (SCHD) has underperformed the market this year, currently trading at $26.80, which is down over 6% from its highest point this year and up over 14.4% from its lowest point [1] Performance Summary - SCHD is currently down over 6% from its peak this year [1] - The ETF has increased by over 14.4% from its lowest point this year [1]

Core Insights - The Schwab US Dividend Equity ETF (NYSEARCA:SCHD) is recognized as one of the most popular ETFs globally [1] Company Overview - The ETF focuses on U.S. companies that pay dividends, appealing to income-seeking investors [1] Industry Context - The popularity of dividend-focused ETFs like SCHD reflects a broader trend in the investment industry towards income-generating assets [1]

Core Insights - The popularity of dividend stocks has shifted significantly, with a notable increase in assets under management in dividend-focused ETFs, such as the Schwab US Dividend Equity ETF (SCHD) with $70 billion [2] - The Vanguard Dividend Appreciation ETF (VIG), while larger at nearly $100 billion, offers a yield of only 1.6%, which is not substantially higher than the S&P 500 Index's yield, impacting the appeal for income-focused investors [3] - There is a growing concern about the sustainability of high-yield stocks, as reaching for yield can lead to financial and psychological distress during market downturns [4] ETF Performance - SCHD has shown a compounded annual return of nearly 9% over the past five years, resulting in a cumulative return of 47%, but has experienced a decline over the past 12 months, with a current yield of 3.8% just breaking even for shareholders [7] - The current market environment is causing some ETFs with higher yields to face vulnerabilities, although they are performing adequately for now [6] Investor Sentiment - Many investors may have a false sense of security in dividend-focused ETFs, as the market dynamics could lead to potential future turmoil [5] - The question remains on how long investors will tolerate the current performance of dividend stocks, especially in light of recent declines [7]

Core Insights - The Schwab US Dividend Equity ETF (NYSEARCA:SCHD) is recognized as a leading benchmark for dividend-focused ETFs [1] Group 1 - The ETF is often regarded as the gold standard in the dividend ETF category [1]

Market Overview - The S&P 500 Index has increased approximately 3.7% in September, leading to a year-to-date gain of 13% [1] - The Federal Reserve has implemented its first rate cut of 2025 in September, with expectations for two additional cuts this year [1] Economic Forecast - The U.S. economy is projected to grow by 1.9% in 2023 and 1.8% in 2026, slightly above previous estimates but still below recent trends [4] - Stronger-than-expected economic activity in Q3 is attributed to tech investment, with private sector activity and defense spending anticipated to be stronger than earlier forecasts [4] Consumer and Corporate Sentiment - Consumer confidence remains weak due to job security concerns and inflation, while corporations face uncertainty from changing trade policies [5] - Rising debt burdens and stringent immigration policies are adding pressure on consumers, impacting overall sentiment [5] Investment Strategy - A conservative investment approach is recommended for the upcoming quarter due to market fragility and potential for negative developments to unsettle markets [6] - Preserving capital and cushioning against volatility is essential for navigating this uncertain period [7] Defensive Investment Options - Increasing exposure to consumer staple ETFs can provide stability and balance in portfolios, with suggested funds including Consumer Staples Select Sector SPDR Fund (XLP), Vanguard Consumer Staples ETF (VDC), and iShares U.S. Consumer Staples ETF (IYK) [9] - Dividend-paying securities are highlighted as reliable income sources during market volatility, with recommended ETFs such as Vanguard Dividend Appreciation ETF (VIG), Schwab US Dividend Equity ETF (SCHD), and Vanguard High Dividend Yield Index ETF (VYM) [11][12] - Quality and value funds, along with volatility ETFs like iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX), are suggested for investors seeking defensive options [13]