SCHD: This ETF Stinks

Quad 7 CapitalInvesting Group LeaderFollow5ShareSavePlay(8min)Comment(1)SummarySchwab U.S. Dividend Equity ETF (SCHD) receives a lot of flack, with constant assertions of underperformance and better alternatives.SCHD underperforms broad indices recently, primarily due to AI-driven market moves and sector allocations.Current top holdings are heavily weighted in biotech/pharma, with sector concentration shifting annually via index reconstitution and rebalancing.Despite recent lagging returns recently, SCHD delivers reliable dividend growth and stability.SCHD outperformed the market since inception on certain time frames, until very recently. Tatiana Foxy/iStock via Getty Images Today we check back in on the Schwab U.S. Dividend Equity ETF™ (SCHD). We have not checked in on this ETF since mid 2025. We see the comments. "This ETF stinks." "SCHD underperforms badly." "There are way better places to invest." AThis article was written byQuad 7 Capital44.04K 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. 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.