Schwab US Dividend Equity ETF Sees Positive Fund Flows

Schwab US Dividend Equity ETF ( $SCHD ) has fallen by 0.82% in the past week. It has experienced a 5-day net inflow of $405.74 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Cisco has received a bullish upgrade from Deutsche Bank, which has raised its stock rating to Buy from Hold, highlighting the positive impact of AI on its business. The bank’s analyst, Matthew Niknam, has increased the price target to $73, suggesting an 11.4% upside potential. Cisco’s recent strong financial results and guidance, driven by demand for AI infrastructure, have contributed to a 2.2% rise in its stock, which is up nearly 11% year-to-date. The company is expected to maintain durable growth, supported by AI tailwinds, a refreshed portfolio, and improved competitive dynamics. With solid earnings, cash flows, and an attractive valuation, Cisco is well-positioned for future growth.
• Texas Instruments is making a significant investment in U.S. semiconductor manufacturing, with plans to spend over $60 billion to expand its domestic footprint. This includes a $40 billion mega-site in Sherman, Texas, which will house four wafer fabrication plants. The move aligns with U.S. industrial policy goals and aims to enhance supply chain control. Texas Instruments will receive substantial funding and tax credits under the CHIPS Act to support this expansion. Although the stock saw a modest 0.33% increase following the announcement, the company’s long-term strategy focuses on supply chain strength and customer alignment, with a Moderate Buy rating from analysts despite a slight downside in the stock price target.