Due to the ETF’s indexing methodology, SCHD includes quality names, with 60% of its holdings exhibiting wide economic moats – a competitive advantage or dominant market position that a company has over rivals. Specifically, these companies have stable earnings, high profitability, low debt and healthy dividends. [Quality Dividend ETFs]
SCHD “shows a great collection of stocks that will rarely come up in discussion at any boring social event that you or I might attend. Is that a reason not to hold them? Too often new investors become focused on holding a company because they like something about it, but the thing they should be looking at is the valuation and the expected stream of future income,” according to a Seeking Alpha post.
Schwab US Dividend Equity ETF
Tom Lydon’s clients own shares of SCHD.