The SCHD ETF, or the Schwab US Dividend Equity ETF, is a type of exchange-traded fund (ETF) that seeks to track the performance of high-dividend-yielding stocks in the United States.
As the name suggests, the ETF is managed by Charles Schwab Investment Management and is designed to provide investors with exposure to a diversified portfolio of large-cap U.S. stocks that pay above-average dividends. The fund uses a proprietary index, the Dow Jones U.S. Dividend 100 Index, as its benchmark.
The holdings in the SCHD ETF are selected based on a number of factors, including dividend yield, dividend growth, and payout consistency. The fund is weighted by market capitalization, with the largest holdings accounting for a greater proportion of the portfolio.
Investors who buy shares of the SCHD ETF can gain exposure to a diversified portfolio of blue-chip stocks that have a history of paying steady dividends. This can provide a source of income for investors, as well as potential long-term capital appreciation.
Like all ETFs, the SCHD ETF can be bought and sold throughout the trading day on major stock exchanges, providing investors with the flexibility to manage their investments as needed. The fund also has a relatively low expense ratio, making it an attractive option for cost-conscious investors.
However, like all investments, the SCHD ETF comes with risks, including the possibility of losing money if the underlying stocks decline in value, and the risk of dividend cuts or suspensions by the companies in the portfolio. Investors should carefully consider their own investment goals, risk tolerance, and financial situation before investing in the SCHD ETF or any other investment.
SCHD Dividend History
댓글