NEW YORK, July 29, 2026, 12:00 p.m. EDT — Stocks opened for trading in the United States.
At midday Wednesday, Schwab U.S. Dividend Equity ETF NYSEARCA:SCHD was up 0.6% to $34.09, while SPDR S&P 500 ETF Trust NYSEARCA:SPY slipped 0.9% to $734.03. These figures are subject to change.
The gap widens with a marked turnaround projected for 2026. SCHD showed a 17.50% return as of June 30, outpacing SPY, which delivered 10.02%. The difference stands at 7.48 points.
Dividend yield is not the only key factor. Health care, consumer staples and energy account for 55.17% of SCHD’s allocation, compared to just 17.53% for SPY.
Technology accounts for 9.23% of SCHD, compared to 36.32% of SPY. This 27 percentage point underweight significantly affects the fund during periods when growth stocks fall.
| Metric | SCHD | SPY |
|---|---|---|
| 2026 total return as of June 30 | 17.50% | 10.02% |
| 30-day SEC yield | 3.27% | 0.97% |
| Published price-to-earnings ratio | 18.41 | 25.94 |
| Top 10 stocks | 41.77% | 36.79% |
| Weight in health care, staples, energy | 55.17% | 17.53% |
| Weight in information technology | 9.23% | 36.32% |
Performance figures reflect the reinvestment of distributions. Yield, valuation, and portfolio dates may differ somewhat depending on the issuer.
SCHD offers a yield that is 2.30 points higher. Its stated earnings multiple is roughly 29% less as well. Nonetheless, the fund remains less than 0.5% from its 52-week peak.
A Seeking Alpha analysis on Tuesday delivered a comparable mixed assessment, noting SCHD trades at a 30% price-to-earnings discount compared with the Schwab U.S. Broad Market ETF (NYSEARCA:SCHB). The analyst, however, chose not to increase holdings at present prices.
Despite having 103 stocks, SCHD’s portfolio is less diversified in practice. Its ten biggest holdings represent 41.77% of total assets. In comparison, the ten largest stocks in SPY comprise 36.79% of its assets.
Healthcare stocks make up 17.79% of SCHD, with four companies holding that share. Combined, healthcare and consumer staples account for more than 41% of the portfolio. As a result, the fund is focused on quality and value, rather than just being a collection of high-yield holdings.
The index’s yearly reset resulted in that level of concentration. By June 30, portfolio turnover stood at 42.28%. After the next reconstitution, today’s leading positions may change.
The benchmark factors in more than just yield. It takes into account dividend track record, cash flow, debt levels, return on equity and payout increases. These criteria are highlighted in Tuesday’s Motley Fool analysis as backing the argument for long-term durability.
Tony Dong, lead ETF analyst at ETF Central, explained the limitation. “The same value and sector tilts driving today’s outperformance can just as easily become headwinds.” 24/7 Wall St.
Wednesday’s resilience was not mirrored by other dividend funds. Vanguard Dividend Appreciation ETF NYSEARCA:VIG declined 0.6%, while iShares Core Dividend Growth ETF NYSEARCA:DGRO dropped 0.3%.
The extended track record paints a less favorable picture. SCHD posted a 10-year annualized return of 12.37% through June, while SPY returned 15.34% for the same span.
Risks: If technology stocks rally again, SPY could benefit more due to its larger weighting in growth sectors. A downturn in energy or healthcare would impact SCHD more significantly. SCHD’s concentrated holdings may intensify gains or losses.
SCHD has become largely a sector-specific investment for those seeking yield. The dividend payout stays above average, while the valuation is still below peers. However, with shares trading close to a 52-week peak, there is reduced room for error.
