SCHD Investors: Mark Your Calendar for March 23 -- Huge Changes Are Coming

"With approximately $84 billion in assets under management and a low expense ratio of just 0.06%, The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index. The index screens for stocks with at least 10 consecutive years of dividend payments, solid free-cash-flow-to-debt ratios, high return on equity, and competitive yields."

"For example, energy stocks have played an outsized role in the ETF lately, commanding roughly 20% of the fund's holdings. This weighting surged after last year's reconstitution and has been a key driver of recent outperformance. Major names like Chevron, ConocoPhillips, and Valero Energy have anchored the sector, benefiting from elevated oil prices and strong cash flows."

"That heavy tilt helped SCHD deliver impressive gains in 2026, with year-to-date returns around 13% as energy stocks outperformed broader tech-heavy benchmarks. The sector's high yields and resilient dividends aligned perfectly with SCHD's mandate during a period when value and cyclical names rotated back into favor."

The Schwab U.S. Dividend Equity ETF, managing approximately $84 billion with a 0.06% expense ratio, tracks the Dow Jones U.S. Dividend 100 Index using strict screening criteria including 10+ consecutive years of dividend payments, strong free-cash-flow-to-debt ratios, high return on equity, and competitive yields. The upcoming March 23 reconstitution represents a significant rebalancing event. Energy stocks currently comprise roughly 20% of holdings, driving recent outperformance with major positions in Chevron, ConocoPhillips, and Valero Energy. The ETF delivered approximately 13% year-to-date returns in 2026, benefiting from elevated oil prices and strong cash flows aligned with the index's quality requirements.

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