This Dividend ETF Yields 3.2% and Is Beating the Nasdaq-100 This Year

Yahoo Finance ·

The Schwab U.S. Dividend Equity ETF ( SCHD 0.35% ) is having an exceptional year, despite being considered a more conservative fund compared to growth-focused funds. The fund has returned about 20% in 2026 as of this writing, ahead of the roughly 11% gain in the S&P 500 . And it's ahead of the tech-heavy Nasdaq-100 's roughly 17% return, too. The growth indexes have set the market's pace for most of the artificial intelligence (AI) boom, and income funds have been the thing investors held for stability. Yet here is a $95 billion portfolio of dividend payers trading at a 52-week high, yielding about 3.2%, and charging just 0.06% in annual expenses. Here's a closer look at how the fund pulled it off.

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SCHD ETF has recorded a return of approximately 20% in 2026, outperforming the S&P 500's 11% and the Nasdaq-100's 17%. This indicates that dividend stocks have secured both stability and profitability amidst an AI-driven growth stock market. A dividend yield of 3.2% and a low expense ratio of 0.06% serve as strong attractions for conservative investors.

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