ETF Spotlight on the Schwab U.S. Dividend Equity ETF (NYSEArca: SCHD), part of an ongoing series.
Assets: $1.3 billion
Objective: The Schwab U.S. Dividend Equity fund tries to reflect the performance of the Dow Jones U.S. Dividend 100 Index, which is comprised of high dividend yielding stocks from companies that have consistently paid dividends for at least 10 consecutive years and are selected based on fundamental strength relative to their peers.
Holdings: Top holdings include Microsoft (NasdaqGS: MSFT) 4.9%, Procter & Gamble (NYSE: PG), Johnson & Johnson (NYSE: JNJ) and Exxon Mobil (NYSE: XOM) each at 4.5% and Coca Cola (NYSE: KO) 4.4%.
What You Should Know:
- Charles Schwab (NYSE: SCHW) sponsors the fund and Schwab clients can trade it commission-free.
- SCHD has a 0.07% expense ratio.
- The fund has 101 components and the top ten make up 41.1% of the overall portfolio.
- Sector allocations include consumer staples 26%, industrials 19.4%, information technology 12.9%, energy 12.3%, health care 11.8%, consumer discretionary 8.8%, materials 3.2%, financials 2.4%, utilities 1.7% and telecom services 0.5%.
- Market capitalization breakdown includes mega-cap 61.1%, large-cap 32.0% and mid-cap 6.3%.
- SCHD has a 2.58% 12-month yield.
- The ETF is up 7.9% over the past month, up 4.6% in the last three months and up 28.7% year-to-date.
- The fund is 8.0% above its 200-day exponential moving average.
- “SCHD is a dividend strategy ETFs that target quality stocks instead of high yield or dividend growth,” according to Morningstar analyst Abby Woodham.
- “Although SCHD may lag riskier funds during market upswings, its holdings are better positioned to weather economic uncertainty,” Woodham added.
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