Low Cost, Solid Yield: Schwab U.S. Dividend Equity ETF

A Seeking Alpha Contribution

Summary

• SCHD is the cheapest dividend ETF.
• SCHD isn’t a high-yield ETF, but is has a high yield relative to similar funds.
• SCHD achieves that relatively high yield with almost no utilities exposure.

Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) has been around for 3 years and it has attracted its fair share of investor interest thanks to a solid yield, very low expense ratios and commission free trading for Schwab customers.

Index & Strategy

SCHD tracks the Dow Jones U.S. Dividend 100 Index. The index mainly relies on four fundamental criteria: cash flow to total debt, return on equity, dividend yield and five-year dividend growth rate. The holdings are weighted using a modified market capitalization… To Continue Reading, Please Click Here.

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