Mon Jul 14 13:50:00 UTC 2025: **Summary:**

The Schwab U.S. Dividend Equity ETF (SCHD) is a popular investment choice, especially among retirees, due to its focus on dividend-paying stocks and lower volatility compared to the S&P 500. It tracks the Dow Jones U.S. Dividend 100 Index, holds a diversified portfolio of 100 stocks (with significant weight in energy, consumer staples, and healthcare), offers a high dividend yield of 4.0%, and boasts a low expense ratio. While it has underperformed the S&P 500 since its inception, its reduced volatility makes it an attractive option for conservative investors seeking stability. However, The Motley Fool’s Stock Advisor team suggests that there are 10 better stocks to invest in currently.

**News Article:**

**Schwab Dividend ETF Remains a Popular Retirement Choice Despite Underperformance**

**New York, NY -** The Schwab U.S. Dividend Equity ETF (SCHD) continues to be a favorite among retirees and conservative investors looking for reliable income and reduced market volatility. The ETF, which tracks the Dow Jones U.S. Dividend 100 Index, offers a high dividend yield of 4.0% and holds a diversified portfolio of 100 dividend-paying stocks.

“Retirees often prioritize stability over aggressive growth, making dividend-focused ETFs like SCHD an appealing option,” explains a market analyst. “Its lower volatility, particularly during market downturns, provides a sense of security.”

SCHD’s top holdings include major players like Texas Instruments, Chevron, and ConocoPhillips, with significant sector exposure in energy, consumer staples, and healthcare. The fund’s low expense ratio of 0.06% further enhances its attractiveness.

However, despite its popularity and stability, the SCHD has underperformed the S&P 500 since its inception in 2011. This has led some experts to question whether it’s the optimal choice for all investors.

Notably, The Motley Fool’s Stock Advisor team has identified 10 stocks they believe offer better investment opportunities. “While SCHD offers stability and income, investors seeking higher returns may want to explore alternative options,” the investment research firm stated.

Despite the underperformance, SCHD’s focus on dividend aristocrats – companies with a long track record of increasing dividends – remains a compelling argument for risk-averse investors. For those prioritizing stability and income, the Schwab U.S. Dividend Equity ETF remains a solid contender.

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