SCHD: Unique Insights And A Preview For The March 2025 Index Reconstitution

2025-02-14 11:00:00 ET

Summary

• SCHD needs little introduction. It's a $68 billion ETF with a 0.06% expense ratio, a 3.57% trailing dividend yield, and an 11.59% five-year dividend growth rate.
• These high-level statistics are easily retrievable on SCHD's quote page, but this article aims to enhance your understanding of the fund by providing unique insights on its fundamentals.
• Divided into four sections, this article covers SCHD's overlap with large-cap ETFs, its compelling factor mix, a company-level comparison with four peers, and a preview for the March 2025 reconstitution.
• Weaknesses remain, including low growth and a surprising halt in earnings momentum. However, SCHD works great as large-cap value fund, and it's an efficient complement to all other large-cap ETFs.
• SCHD's Index reconstitution takes effect Monday, March 24, with a detailed follow-up article planned for the same day.

Introduction: How My Insights Are Unique

Based on the number of articles written on the Schwab U.S. Dividend Equity ETF ( SCHD ), I'm willing to bet most of you already know how it works. You know the strategy, you know it provides a high dividend yield and good dividend growth, and more recently, you know it's struggled against broad market benchmarks like the SPDR S&P 500 ETF ( SPY ). All these things can be quickly summed up in a few paragraphs, but today, my objective is to highlight things you can't easily find about SCHD, in particular:

1. SCHD's low overlap with 450+ other large-cap ETFs.
2. SCHD's unique combination of quality, value, risk, and income.
3. SCHD's projected changes at next month's reconstitution.
4. SCHD's current fundamentals compared to four peers.

Read the full article on Seeking Alpha

For further details see: