The Schwab US Dividend Equity ETF (NYSE:SCHD) is hovering near its all-time high and is beating the S&P 500 and Nasdaq 100 in terms of total returns this year, a sign that there is demand for value stocks.
SCHD ETF’s Total Return is Better Than VOO and QQQ This Year
The fund has performed well despite having limited exposure to high-growth sectors such as artificial intelligence (AI). Consumer staples is its largest sector allocation, accounting for 20% of the portfolio. It is followed by healthcare, energy, and industrials, giving the fund a more defensive sector mix.
The biggest companies in the SCHD ETF are firms like Home Depot, Merck & Co, UnitedHealth Group, Amgen, and Abbott Laboratories. The only large companies with exposure to the AI sector are Qualcomm and Texas Instruments.
SCHD has had over $13.23 billion in inflows in the last 12 months, bringing its total assets under management to nearly $100 billion. It is also relatively cheap, with its price-to-earnings ratio being 18, lower than S&P 500 Index’s 23. Its price-to-book and price-to-cash flow ratios being 3.84 and 10.9, respectively.
