There’s been a lot of controversy this year surrounding one of the most popular dividend-growth ETFs out there, which is SCHD. The Schwab US dividend equity ETF has been underperforming a lot in 2023 when compared to the S&P 500 as well as other dividend growth ETFs. A lot of people have been discouraged by the performance of SCHD, and some people are considering or have even already sold out of it in hopes of finding a better-performing dividend ETF. So in today’s video, I thought it would be a good idea to take another look at this fund and try to determine why it’s been underperforming and if there’s still hope for this fund going forward.

Most people watching this are probably familiar with this fund. It’s a passively managed ETF that tracks the total return of the Dow Jones U.S. Dividend 100 Index. This index holds a lot of slow-growth blue-chip stocks that have consistently grown their dividends over a long period of time. The majority of what this fund holds are dividend aristocrats and dividend kings, which are companies that’ve increased their dividends every year for decades. Today, SCHD is one of the largest dividend ETFs and one of the largest ETFs in existence, having over $46 billion in total assets under management. Not to mention, it has a very low expense ratio at just six basis points.

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