NEW YORK, August 24, 2026, 15:30 EDT
- SCHD was last at $35.17 at 14:54 EDT, down 0.4% from its 52-week peak.
- By August 14, year-to-date inflows totaled $17.68 billion, representing 16.2% of total assets.
- The pairing case increases growth exposure, though SCHD’s value positioning now appears crowded.
The Schwab U.S. Dividend Equity ETF NYSEARCA:SCHD was trading close to a record high on Monday. A surge of $17.68 billion in inflows has shifted this defensive play into a top 2026 investment option.
This is important for investors looking up “schd stock” and weighing the option of a second ETF. Combining the two can help address SCHD’s growth shortfall, though it does not reverse the cost after a 27.8% total return.
SCHD was most recently traded at $35.17 as of 14:54 EDT on August 24, up 0.17% and 14 cents under its session high of $35.31. Trading volume exceeded 20.1 million shares.
The shift is already significant
| ETF | Mandate | YTD total return | YTD net flows | Expense ratio |
|---|---|---|---|---|
| SCHD | Quality U.S. dividends | 27.83% | $17.68bn | 0.06% |
| Invesco QQQ Trust NASDAQ:QQQ | Nasdaq-100 growth | 17.10% | $15.23bn | 0.18% |
| SPDR S&P 500 ETF Trust NYSEARCA:SPY | U.S. large-cap core | 12.88% | $21.03bn | 0.0945% |
| Vanguard High Dividend Yield ETF NYSEARCA:VYM | Broad high dividend | 16.62% | $4.10bn | 0.04% |
SCHD outperformed QQQ by 10.7 percentage points in those instances. It also surpassed SPY by 15 points. The difference highlights a marked shift toward cash-producing, lower-multiple firms.
The movement of funds stands out. Inflows to SCHD in 2026 amounted to 16.2% of its assets as of August 14. QQQ attracted a higher than typical dollar volume, but still trailed SCHD.
As of August 19, Schwab disclosed assets totaling $111.5 billion and 103 holdings. According to its official July figures, the year-to-date return was 24.03%, while the 30-day SEC yield stood at 3.18%.
Concentration leads to income
| Portfolio exposure | Weight | Investor implication |
|---|---|---|
| Health care | 20.72% | Defensive profits, faces policy and pipeline uncertainty |
| Consumer staples | 20.38% | Consistent demand, less affected by growth swings |
| Energy | 14.07% | Cash flow from commodities helps support income |
| Industrials | 11.55% | Cyclical growth linked to capital investment |
| Financials | 10.05% | Sensitive to interest rates and credit cycles |
| Information technology | 9.23% | Limited exposure to market growth leaders |
| Top 10 holdings | 41.38% | Significant exposure to individual stocks |
Health care and staples account for 41.1% of the portfolio, while technology comprises just 9.2%. This disparity reflects both SCHD’s resilience in 2026 and supports the recommendation to pair it with other holdings.
A QQQ combination brings in the essential growth element, but it also brings the Nasdaq-100’s tech-heavy valuation risk. SPY provides a more diversified approach, and VYM essentially mirrors the dividend profile.
Analyst perspective on SCHD’s top holdings
| Major SCHD holding | SCHD weight | Consensus | Average target | Implied upside |
|---|---|---|---|---|
| Merck & Co. NYSE:MRK | 4.88% | Buy | $147.77 | -1.81% |
| Abbott Laboratories NYSE:ABT | 4.83% | Buy | $119.40 | 2.51% |
| Amgen Inc. NASDAQ:AMGN | 4.81% | Buy | $388.48 | -12.37% |
| Coca-Cola NYSE:KO | 4.22% | Buy | $94.70 | 3.26% |
| Home Depot NYSE:HD | 4.05% | Buy | $377.50 | 11.95% |
Signals are mixed on a look-through basis. Each of the five holdings has a Buy consensus, but average price targets suggest downside for Merck and Amgen, while Abbott and Coca-Cola show only limited upside.
Limited support for the target is significant as levels approach a record high. Fresh investment is entering the fund at 18.7 times earnings. While that valuation is still under many growth portfolios, it no longer signals distress.
The appropriate pairing approach hinges on the investor’s objective. Investors aiming for style diversification might consider QQQ in controlled amounts. Those prioritizing broader diversification could opt for a core-market fund, accepting reduced income.
Key focuses for Monday are the all-time high and the endurance of flows. A steady move past $35.31 would signal continued demand. If inflows slow, it may indicate how much of 2026’s rerating is already reflected.
Risks: SCHD may lag if the market is driven by technology gains. Rising bond yields have the potential to dampen interest in dividend-focused funds. Its major sector exposures could be affected by adverse developments in pharmaceuticals, falling commodity prices or increased consumer strain.
