NEW YORK, Feb 3, 2026, 10:58 (EST)
Schwab’s SCHD, a dividend-focused ETF packed with U.S. stocks, is outpacing key benchmarks early in 2026 and sits close to an all-time high, according to an Invezz report shared by TradingView. The fund has posted an 8.5% gain year-to-date, compared to roughly 1% for the S&P 500. (TradingView)
It’s the timing that’s grabbing attention. Big tech had been driving U.S. stocks, but now value and income shares are stepping into the spotlight, pushing investors to reassess what counts as “market leadership” in these opening weeks.
That shift is now filtering into retail portfolios. This week’s commentary casts SCHD not just as a steady income play but as a slick, low-friction option for tapping dividend payers—especially as volatility returns to growth stocks.
According to Schwab’s fund page, SCHD held roughly $79.0 billion in net assets as of Feb. 2. The fund carries a 0.06% annual expense ratio—the fee investors pay yearly based on assets. Schwab also reported a trailing 12-month distribution yield of 3.82%, reflecting the cash payouts relative to its price. (Schwab Brokerage)
On Feb. 2, Motley Fool’s Reuben Gregg Brewer noted that SCHD follows the Dow Jones U.S. Dividend 100 Index, which targets companies with at least a decade of rising dividends. The index then ranks these firms based on factors like cash flow versus debt and return on equity, a key profitability measure. Brewer put SCHD’s dividend yield near 3.8%, compared to about 1.1% for the S&P 500, and highlighted that $500 would currently buy roughly 17 shares. (The Motley Fool)
Seeking Alpha contributor Frederik Mueller laid out a $75,000 model dividend portfolio centered on SCHD and a selection of “top 10 dividend picks” for 2026. He pegged the portfolio’s weighted average dividend yield at 5.67% with a five-year dividend growth rate of 5.60%. To manage concentration risk, Mueller capped individual company and sector exposure, while diversifying with funds and stocks like VNQ, QQQI, Visa, Microsoft, and AbbVie. (Seeking Alpha)
Fees remain a key battleground, and the rivalry is anything but quiet. On Monday, Vanguard announced it will slash fees on 53 index mutual funds and ETFs, including its International High Dividend Yield ETF, as it fights to protect its low-cost reputation in an increasingly crowded field. “Low fees have been a powerful marketing and behavioral hook,” said Jeff DeMaso, editor at the Independent Vanguard Adviser. Morningstar analyst Zachary Evans noted the cuts “tend to be small… but it does send a signal” that Vanguard is still committed to driving costs lower. (Reuters)
There are obvious risks here. SCHD’s avoidance of the fastest-growing sectors could backfire if investors rush back into tech. And a dividend yield won’t shield you from a long stretch of falling prices. Plus, the fund holds significant stakes in areas like energy, which can shift sharply if oil prices drop.
Rates are still unpredictable. Atlanta Fed President Raphael Bostic weighed in on Monday, saying the Fed shouldn’t cut rates this year. He argued that easing now would make hitting the inflation target “very unlikely” and added, “So I think this is the time to be patient.” (Reuters)
At the moment, SCHD is drawing renewed attention online — driven by a mix of its performance, fees, and investor sentiment. The real test lies ahead, with major U.S. corporations releasing earnings and new economic figures reshaping forecasts on growth and interest rates.
