SCHD: SCHWAB U.S. DIVIDEND EQUITY ETF
Share-split context: A forward split was recorded on Oct 11, 2024 with coefficient 3. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.
ETF Education Report: SCHWAB U.S. DIVIDEND EQUITY ETF (SCHD)
What this ETF is trying to do
The SCHD ETF is designed to provide exposure to U.S. companies. Based on its name and holdings, it focuses on dividend-paying stocks. It holds a total of 102 different companies.
What the numbers show
When looking at ETF performance, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes both the price change and the cash distributions (dividends) paid out to investors.
Here is how SCHD has performed:
• Year-to-Date (YTD): The price return is approximately 19.03%, while the total return is approximately 21.96%.
• One-Year: The price return is approximately 19.68%, while the total return is approximately 23.86%.
• Three-Year: The price return is approximately 40.67%, while the total return is approximately 56.95%.
This ETF has a history of forward splits. In its most recent split on October 11, 2024, one old share became three new shares. This means the price per share dropped proportionally, but your total ownership stayed the same. Because of this history, we use split-adjusted returns to show true performance.
Income and distribution explanation
This ETF pays out cash to investors, known as distributions. The current distribution yield is approximately 3.23%. This number describes the cash paid out relative to the current share price of $32.65.
The ETF usually pays these distributions quarterly, and it has made 4 payments in the last 12 months. While high yields can provide cash income, they are not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry that high payouts might cause the fund's value to shrink over time.
For SCHD, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are some of the largest companies held in this ETF (note that this is a partial list):
• QUALCOMM INC (4.62%)
• TEXAS INSTRUMENTS INC (4.58%)
• PROCTER & GAMBLE CO (4.23%)
• COCA-COLA CO (4.14%)
• MERCK & CO INC (4.11%)
• CHEVRON CORP (4.08%)
Pros
• The ETF shows a history of positive total returns over one, three, and five-year periods.
• It provides regular cash distributions.
Cons
• Because this is a partial list, you are not seeing all 102 companies held in the fund.
• Holdings can change over time.
Beginner takeaway
When studying SCHD, remember that the total return is higher than the price return because it includes dividends. Always look at both numbers to see how much value an investment has actually created.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | QUALCOMM INC | QCOM | 4.62% |
| 2 | TEXAS INSTRUMENTS INC | TXN | 4.58% |
| 3 | PROCTER & GAMBLE CO | PG | 4.23% |
| 4 | COCA-COLA CO | KO | 4.14% |
| 5 | MERCK & CO INC | MRK | 4.11% |
| 6 | CHEVRON CORP | CVX | 4.08% |
| 7 | AMGEN INC | AMGN | 3.96% |
| 8 | UNITEDHEALTH GROUP INC | UNH | 3.96% |
| 9 | VERIZON COMMUNICATIONS INC | VZ | 3.90% |
| 10 | CONOCOPHILLIPS | COP | 3.85% |