Core Viewpoint - The Schwab U.S. Dividend Equity ETF (SCHD) is presented as a smart investment choice for income-focused investors, particularly due to its attractive dividend yield and cost-effectiveness [2][6]. Group 1: Investment Characteristics - The Schwab U.S. Dividend Equity ETF offers a dividend yield of 3.8%, significantly higher than the S&P 500's yield of approximately 1.2% [6]. - The ETF has a low expense ratio of 0.06%, making it a cost-effective option for investors [6][9]. - The ETF tracks the Dow Jones U.S. Dividend 100 Index, which includes companies that have increased their dividends for at least a decade [7][8]. Group 2: Selection Criteria - The index excludes real estate investment trusts and selects companies based on a composite score that includes cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate [8]. - The ETF comprises 100 companies with the highest scores, ensuring a portfolio of high-quality companies with a history of increasing dividends [9]. Group 3: Historical Performance and Strategy - Historical trends indicate that the price of the ETF and its dividends have generally increased over time, suggesting a successful investment strategy focused on companies with growing dividends [11]. - Long-term investment strategies are recommended over market timing, making the Schwab U.S. Dividend Equity ETF a potentially good long-term investment choice for income-focused investors [12].