SCHD: Good Times Are Likely Over

Stone Fox CapitalInvesting Group LeaderFollow5ShareSavePlay(10min)Comments(3)SummaryThe Schwab U.S. Dividend Equity ETF is set to underperform the S&P 500 again after a recent rally and annual reconstitution.SCHD's methodology fails to capture attractively valued stocks, relying too heavily on dividend metrics that no longer reflect true value or capital return priorities.The ETF's energy sector weighting and removal of certain stocks highlight flaws in its reconstitution process, risking underperformance during market rebounds and lower oil prices.I remain bearish on SCHD, citing its persistent inability to select dividend payers with compelling valuations and sustainable growth.Looking for a helping hand in the market? Members of Out Fox The Street get exclusive ideas and guidance to navigate any climate. Learn More »Getty Images After a snapback rally, the Schwab U.S. Dividend Equity ETF (SCHD) is set to again underperform the S&P 500 index. The dividend ETF loved by the market just reconstituted the fund alongside the Dow JonesThis article was written byStone Fox Capital55.29K FollowersFollowStone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat and direct chat with Mark for questions. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRM 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. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.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.