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SCHD - ETF AI Analysis

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SCHD

Schwab US Dividend Equity ETF (SCHD)

Rating:73Outperform
Price Target:
SCHD, the Schwab US Dividend Equity ETF, earns a solid overall rating thanks to several high-quality, cash-generating companies like Verizon and Merck, which combine strong financial performance, attractive valuations, and supportive earnings outlooks. Additional leaders such as Bristol-Myers Squibb, PepsiCo, and Texas Instruments further bolster the fund with resilient business models and dividend support, though some holdings like Altria and Chevron face challenges from leverage, technical weakness, or slowing growth. The main risk factor is the fund’s meaningful exposure to a few sectors and mature companies where high debt levels, competitive pressures, and slower growth could weigh on future returns.
Positive Factors
Strong Recent Performance
The ETF has shown steady gains over the past month, three months, and year to date, indicating positive recent momentum.
Leading Dividend Blue-Chip Holdings
Many of the top holdings, such as major defense, energy, healthcare, and consumer brands, have delivered solid year-to-date performance that supports the fund’s returns.
Very Low Expense Ratio
The fund charges a low fee, which helps investors keep more of the returns generated by the portfolio.
Negative Factors
Heavy U.S. Concentration
Almost all assets are invested in U.S. companies, offering very little geographic diversification outside the United States.
Sector Concentration in Energy and Consumer Defensive
Large weights in energy and consumer defensive stocks mean the fund can be more affected if these sectors face a downturn.
Limited Exposure to Technology and Utilities
Relatively small allocations to technology and utilities may cause the ETF to lag if those areas of the market lead future gains.

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

SCHD Summary

SCHD is the Schwab US Dividend Equity ETF, which follows the Dow Jones U.S. Dividend 100 Index. It focuses on large U.S. companies that pay steady, relatively high dividends. The fund owns well-known names like Coca-Cola and PepsiCo, along with firms in energy, health care, consumer goods, and more, giving you broad diversification in one investment. Someone might invest in SCHD to seek regular income from dividends plus potential long-term growth. A key risk is that stock prices and dividend payments can go up or down with the overall market and the health of these companies.
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 all about dependable U.S. dividend payers, with a clear tilt toward energy, defense, and consumer staples. ConocoPhillips and Chevron are doing the heavy lifting, riding firm energy markets and helping power the fund higher. Lockheed Martin has also been a quiet engine of growth, even if it occasionally sputters on valuation worries. On the flip side, consumer giants like Coca-Cola and PepsiCo, along with Texas Instruments in tech, have been more mixed lately, acting as steady ballast rather than big performance drivers.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
UnitedHealth4.30%$3.69B$276.23B-49.23%
72
Outperform
Chevron4.26%$3.65B$379.84B39.02%
71
Outperform
Texas Instruments4.24%$3.64B$195.50B45.48%
78
Outperform
Merck & Company4.20%$3.61B$303.31B53.35%
80
Outperform
Coca-Cola4.06%$3.49B$336.23B8.46%
75
Outperform
Conocophillips4.05%$3.48B$150.92B41.86%
78
Outperform
PepsiCo3.88%$3.33B$214.65B8.74%
78
Outperform
Verizon3.85%$3.31B$201.52B5.28%
81
Outperform
Amgen3.79%$3.25B$189.22B22.74%
77
Outperform
Abbott Laboratories3.76%$3.23B$174.69B-20.95%
73
Outperform

SCHD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
30.77
Negative
100DMA
29.17
Positive
200DMA
27.82
Positive
Market Momentum
MACD
0.03
Negative
RSI
48.85
Neutral
STOCH
75.56
Neutral
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 30.53, equal to the 50-day MA of 30.77, and equal to the 200-day MA of 27.82, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, 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
$86.76B0.06%
73
Outperform
$74.77B0.04%
71
Outperform
$22.61B0.38%
69
Neutral
$20.61B0.35%
71
Outperform
$13.62B0.08%
72
Outperform
$8.62B0.15%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SCHD
Schwab US Dividend Equity ETF
30.56
5.91
23.98%
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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