Tue Feb 03 15:20:00 UTC 2026: ### SCHD ETF Surges Amid Tech Stock Rotation and Energy Sector Boom

The Story:
The Schwab US Dividend Equity ETF (SCHD) is significantly outperforming major market indices like the S&P 500 and Nasdaq 100 in 2026, driven by a rotation from technology stocks to value-oriented companies. The ETF has increased by 8.50% this year, reaching an all-time high, contrasting sharply with the S&P 500’s mere 1% gain. This shift is fueled by crashing tech stocks and soaring energy prices, the latter constituting a substantial 20% of the fund’s holdings.

Key Points:

  • SCHD is up nearly 30% from its lowest level in April 2025.
  • Technology stocks, including NVIDIA and Microsoft, have experienced significant declines, entering correction or bear market territory.
  • Energy sector performance is a major driver, with the State Street Energy Select Sector ETF (XLE) up 40% since April 2025, reaching a record high.
  • Key energy stocks within SCHD include Chevron, ConocoPhillips, EOG Resources, and Valero Energy.
  • Upcoming corporate earnings from companies like Palantir, Walt Disney, and ConocoPhillips, along with US non-farm payroll data and potential Federal Reserve Chair nomination, will serve as potential catalysts.

Key Takeaways:

  • Market dynamics are currently favoring value stocks and dividend-focused ETFs like SCHD over high-growth technology stocks.
  • Energy sector performance is a significant contributor to SCHD’s success.
  • Investor sentiment is shifting away from the AI boom, and towards more stable and higher dividend paying stocks.
  • Upcoming economic data releases and corporate earnings will be crucial in determining the ETF’s future trajectory.

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