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SCHD - ETF AI Analysis

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SCHD

Schwab US Dividend Equity ETF (SCHD)

Rating:74Outperform
Price Target:
SCHD, the Schwab US Dividend Equity ETF, earns a solid overall rating driven by high-quality dividend payers like Merck, Qualcomm, and Texas Instruments, which combine strong financial performance with positive growth outlooks. Defensive consumer staples such as Coca-Cola and PepsiCo further support the fund’s stability, while more mixed names like Home Depot and Chevron, with higher leverage or weaker technical trends, slightly weigh on the rating. The main risk is that several large holdings show signs of potential overvaluation or leverage-related pressures, which could limit upside if market conditions worsen.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and over the last few months, indicating positive recent momentum.
Low Expense Ratio
The fund’s very low annual fee means more of the investment returns stay in investors’ pockets instead of going to costs.
Quality Dividend Leaders in Top Holdings
Many of the largest positions, such as Texas Instruments, Chevron, and ConocoPhillips, have delivered strong year-to-date results, helping support the fund’s overall performance.
Negative Factors
Heavy U.S.-Only Exposure
Almost all of the fund’s assets are invested in U.S. companies, which limits diversification across different global markets.
Sector Concentration in a Few Areas
Large weights in consumer defensive, health care, technology, and energy mean the fund is more exposed if these sectors face a downturn.
Some Lagging Top Holdings
A few major positions, such as Qualcomm and Home Depot, have shown weak or negative performance this year, which can drag on overall returns.

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 owns well-known names like Coca-Cola, PepsiCo, Chevron, and Home Depot, spread across sectors such as healthcare, technology, energy, and consumer goods. Someone might invest in SCHD to seek regular income from dividends along with the chance for long-term growth, all in one diversified U.S. stock fund. A key risk is that its stock prices and dividend payments can still go up and down with the overall market.
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 about steady U.S. dividend powerhouses rather than flashy growth. Texas Instruments is one of the main engines, rising on solid results and helping anchor the fund’s tech exposure, while ConocoPhillips and Chevron give the portfolio an energy boost after a strong run. On the defensive side, Coca-Cola and PepsiCo are quietly doing their job, adding stability more than excitement. Health care names like UnitedHealth and Merck are mixed, keeping returns in check but reinforcing SCHD’s diversified, income-focused tilt across U.S. blue chips.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Texas Instruments5.57%$4.90B$252.33B65.91%
78
Outperform
UnitedHealth4.94%$4.35B$322.15B-15.55%
72
Outperform
Qualcomm4.16%$3.66B$158.82B1.79%
80
Outperform
Chevron4.05%$3.57B$369.57B31.89%
71
Outperform
Coca-Cola3.99%$3.51B$329.83B5.08%
75
Outperform
Conocophillips3.90%$3.44B$148.41B30.94%
78
Outperform
PepsiCo3.86%$3.40B$212.45B15.21%
78
Outperform
Procter & Gamble3.81%$3.35B$344.37B-8.31%
69
Neutral
Merck & Company3.78%$3.33B$276.38B32.50%
80
Outperform
Home Depot3.70%$3.26B$334.56B-6.90%
66
Neutral

SCHD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
30.90
Positive
100DMA
29.83
Positive
200DMA
28.19
Positive
Market Momentum
MACD
0.28
Negative
RSI
66.90
Neutral
STOCH
87.74
Negative
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 31.05, equal to the 50-day MA of 30.90, and equal to the 200-day MA of 28.19, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 87.74 is Negative, 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
$91.28B0.06%
74
Outperform
$76.71B0.04%
71
Outperform
$22.56B0.38%
69
Neutral
$21.10B0.35%
71
Outperform
$13.38B0.08%
72
Outperform
$9.13B0.15%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SCHD
Schwab US Dividend Equity ETF
31.86
7.02
28.26%
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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