Article Of The Week
"This ETF May Be A Suitable Replacement For SCHD"
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly in the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age. I want to help you take control of your life, have F.I.R.E.
And the platform allows analysts to share 5 free articles a month. So, I like to share them once a week for all my subscribers and future subscribers.
If you’re an individual investor who likes dividends, then it’s likely you’ve heard of the dividend-focused ETF by Schwab (SCHW), Schwab U.S. Dividend Equity ETF (SCHD).
The ETF is very popular with dividend investors, mainly because of their solid dividend yield of 3.81% and the income stability & reliability it provides. But over the past year, SCHD has underperformed in terms of price appreciation in comparison to the overall market.
At the time of writing, the ETF is down, but only modestly at less than 1%. However, investors have grown wary because the S&P has continued to make new highs, while SCHD has remained stagnant. But this doesn’t have anything to do with the fundamentals and more so to do with the strong growth of AI, or the Technology (XLK) sector.
SCHD’s underperformance has also caused investors to look for replacements in their portfolios as a result. And if you’re one of those investors, then you may be in luck with the latest article of the week that you can read here.
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