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SCHD - ETF AI Analysis

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SCHD

Schwab US Dividend Equity ETF (SCHD)

Rating:74Outperform
Price Target:
SCHD’s rating reflects a portfolio anchored by strong, established dividend payers like Merck and PepsiCo, whose solid financial performance, cash flow, and strategic growth plans support the fund’s overall quality. Some holdings such as Home Depot and Procter & Gamble face bearish technical trends, leverage, and valuation concerns, which modestly weigh on the rating. A key risk factor is the fund’s concentration in large U.S. companies where high debt levels and sector-specific challenges, like healthcare and consumer markets, could impact future returns.
Positive Factors
Strong Recent Performance
The fund has delivered strong gains so far this year and in recent months, showing solid momentum.
Low Expense Ratio
The ETF charges a very low fee, which helps investors keep more of their returns over time.
Defensive Sector Mix
Heavy exposure to health care and consumer defensive companies can help provide stability during market downturns.
Negative Factors
Single-Country Focus
Almost all assets are invested in U.S. companies, offering little geographic diversification.
Concentration in Top Holdings
A relatively small group of large positions makes up a significant share of the portfolio, increasing reliance on those companies.
Mixed Performance Among Key Stocks
Some major holdings have shown weak or negative performance this year, which can drag on overall returns if the trend continues.

SCHD vs. SPDR S&P 500 ETF (SPY)

SCHD Summary

Schwab US Dividend Equity ETF (SCHD) is a fund that follows the Dow Jones U.S. Dividend 100 Index, focusing on large U.S. companies that pay steady, reliable dividends. It holds well-known names like Coca-Cola and Procter & Gamble, along with firms in health care, consumer goods, energy, and technology. Someone might invest in SCHD to build a simple, diversified income stream, with the potential for long-term growth as these companies grow and raise their payouts. A key risk is that stock prices and dividends can still go up and down with the overall market and the health of the U.S. economy.
How much will it cost me?SCHD has an expense ratio of 0.06%, which means you’ll pay $0.60 per year for every $1,000 invested. This is lower than average because SCHD is passively managed, tracking an index rather than relying on active stock picking.
What would affect this ETF?SCHD's focus on U.S. companies with strong dividend performance could benefit from stable economic growth and favorable corporate earnings, particularly in sectors like Consumer Defensive and Health Care, which are less sensitive to economic downturns. However, rising interest rates or regulatory changes affecting dividend payouts could negatively impact its performance, especially in sectors like Energy and Financials. Additionally, shifts in consumer spending or geopolitical tensions could influence the top holdings, such as PepsiCo, Chevron, and Lockheed Martin.

SCHD Top 10 Holdings

SCHD’s story right now is being written largely by its heavyweight health care names and energy giants. Merck, UnitedHealth, Amgen, Chevron, and ConocoPhillips are all rising, giving the fund a solid backbone of defensive and cash-rich businesses. On the other side, Home Depot and PepsiCo are lagging, while Procter & Gamble and Coca-Cola are more steady, keeping overall returns from really sprinting ahead. With all major holdings rooted in U.S. companies and a tilt toward health care, consumer staples, and energy, SCHD leans into dependable, dividend-heavy blue chips.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Abbott Laboratories4.58%$4.69B$179.51B-17.30%
73
Outperform
Merck & Company4.42%$4.53B$323.72B55.56%
80
Outperform
UnitedHealth4.32%$4.42B$382.09B48.04%
72
Outperform
Amgen4.30%$4.40B$202.95B24.88%
77
Outperform
Home Depot4.12%$4.22B$332.02B-10.90%
66
Neutral
Procter & Gamble4.07%$4.17B$343.26B-5.40%
69
Neutral
Coca-Cola4.04%$4.14B$353.88B23.47%
75
Outperform
Chevron3.97%$4.07B$387.94B21.58%
71
Outperform
Verizon3.85%$3.94B$193.66B11.71%
81
Outperform
Conocophillips3.73%$3.82B$146.51B19.13%
78
Outperform

SCHD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
32.28
Positive
100DMA
31.50
Positive
200DMA
29.67
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SCHD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 32.63, equal to the 50-day MA of 32.28, and equal to the 200-day MA of 29.67, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCHD.

SCHD Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$103.32B0.06%
74
Outperform
$81.07B0.04%
72
Outperform
$23.74B0.38%
70
Neutral
$21.59B0.35%
71
Outperform
$14.66B0.08%
71
Outperform
$10.01B0.15%
70
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SCHD
Schwab US Dividend Equity ETF
33.83
7.94
30.67%
VYM
Vanguard High Dividend Yield Index ETF
DVY
iShares Select Dividend ETF
SDY
SPDR S&P Dividend ETF
HDV
iShares Core High Dividend ETF
FDVV
Fidelity High Dividend ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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