SCHD Is Doing The Unthinkable

Quad 7 CapitalInvesting Group LeaderFollow5ShareSavePlay(8min)Comment(1)SummaryThe Schwab U.S. Dividend Equity ETF was a horrific underperformer in 2024 and especially in 2025.SCHD's top holdings—defense, energy, communications, and select tech—now comprise over 22% of the ETF, which has led to something peculiar.Annual reconstitution poses risks and opportunities, as past rebalancing led to both under- and outperformance depending on sector momentum.With falling rates and rising dividend appeal, SCHD's diversified, dividend-growing approach may lead to ongoing outperformance.I do much more than just articles at BAD BEAT Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More » alexsl/iStock via Getty Images Today we check back in on the Schwab US Dividend Equity ETF™ (SCHD). We have cited this name as a buy a few times in the low and mid $20s. The suggestion for this ETF to have a role inThis article was written byQuad 7 Capital44.25K FollowersFollowThe Pioneer Of Seeking Alpha's BAD BEAT Investing, Quad 7 Capital is a team of 7 analysts with a wide range of experience sharing investment opportunities for nearly 12 years. They are best known for their February 2020 call to sell everything & go short, & have been on average 95% long 5% short since May 2020. The broader company has expertise in business, policy, economics, mathematics, game theory, & the sciences. They share both long & short trades & invest personally in equities they discuss within their investing group BAD BEAT Investing, focused on short- & medium-term investments, income generation, special-situations, & momentum trades. Rather than just give you trades, they focus on teaching investors to become proficient traders through their playbook. Their goal is to save you time by providing in depth, high-quality research, with crystal clear entry and exit targets. They have a proven track record of success.Benefits of BAD BEAT Investing include: Learning how to understand the pinball nature of markets, executing well-researched written trade ideas each week, use of 4 chat rooms, receive daily complimentary key analyst upgrade/downgrade summaries, learning basic options trading, & extensive trading tools. If you would like to learn more, click the link above!Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. BAD BEAT Investing and Quad 7 Capital offers research and writes opinion columns. By using our service you understand and acknowledge that there is a very high degree of risk involved in trading securities and, in particular, in trading options, including the entire loss of principal. Use of the service, our research columns, the chat service, and any other tools and the information contained herein is not intended to be a source of advice with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice. All users of the site are encouraged to consult with a personal financial advisor. No personal investment advice is being made, nor will be given. This content does not take into account your particular investment objectives, financial situation, or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this content. Before acting on information in this content, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.