Overview
- Schwab U.S. Dividend Equity ETF (SCHD) is up about 11% year to date while the Vanguard S&P 500 ETF (VOO) is down around 1%, highlighting a sharp shift toward dividend and value stocks.
- Vanguard Value ETF (VTV) has outpaced the S&P 500 by roughly 7% this year as less reliance on mega-cap tech and broader exposure to finance, energy, healthcare, and staples helped performance.
- SCHD completed its annual index reset, dropping 22 stocks and adding 25 after screening for yield, five-year dividend growth, and financial strength, with new top holdings in UnitedHealth and Abbott Laboratories and the removal of AbbVie.
- The reshuffle lifted healthcare to about 18.9% of the fund and kept a defensive tilt with consumer staples and healthcare near 38% combined, while energy eased to 16.5% and technology sits near 11%.
- The portfolio’s headline yield holds near 3.4%, but the average five-year dividend growth rate rose to 9.4% from 8.6%, though recent March volatility and geopolitical risks could still reverse this year’s value lead.