Overview
- The Schwab U.S. Dividend Equity ETF has reported a 12.3% average annual total return since its late-2011 launch.
- At that rate, a $2,000 one-time investment would exceed $1 million in about 54 years, though such projections rely on returns continuing at the reported pace.
- Adding contributions accelerates compounding, with $1,000 per year shortening the timeline to roughly 42 years and $2,000 per year to about 36 years.
- The fund seeks to mirror the Dow Jones U.S. Dividend 100 Index, which screens for higher-yielding stocks with five-year dividend growth and strong financial metrics.
- SCHD manages more than $75 billion, ranking as the second-largest dividend-focused ETF by assets.