DGRO News & Analysis

SCHD Outperforms S&P 500 by 9% YTD with 17% Return

The Schwab U.S. Dividend Equity ETF (SCHD) has gained 17% year-to-date, outperforming the S&P 500's 8% return by approximately 9 percentage points. This performance has drawn attention to dividend growth funds, particularly in sectors such as healthcare, energy, and financials, which now trade at more reasonable multiples. SCHD tracks the Dow Jones U.S. Dividend 100 Index, utilizing a three-factor screen, accounting for dividend history, cash flow, and growth. This outperformance suggests a shift in market leadership towards funds focusing on real cash flow and sustainable dividend policies.