The Schwab U.S. Dividend Equity ETF (SCHD) is recognized for its strong dividend stock selection process and has historically performed well, though it faced challenges from 2023 to 2025 due to the rise of megacap tech stocks. As of 2026, it has regained momentum in the dividend ETF category, but its attractiveness for investment depends on economic trends and the ongoing influence of AI stocks.
The Schwab U.S. Dividend Equity ETF (SCHD) has regained its leadership in the dividend ETF category in 2026, after a period of underperformance due to the dominance of megacap tech stocks. For a professional investor, this signals a potential opportunity to revisit SCHD, especially if market conditions continue to favor dividend-paying stocks over tech-driven growth, contingent on the sustainability of trends like AI.