The Curious Case of Schwab’s Dividend ETF: A Sizable Portion of Its Pie Sits in Just Three Sectors
With a 3.7% yield over the last 30 days (which, by the way, is practically three times what you’d nab from an S&P 500 index fund, poor thing), it’s an alluring proposition for those with a penchant for passive income. But there is, of course, a fly in the ointment, as there often is in such matters. A quick glance reveals that this highly-touted ETF is, shall we say, a tad choosy about the sectors it embraces-so much so that a good 54% of its assets are concentrated in just three areas. We’re talking energy, consumer staples, and healthcare-a combination that may raise an eyebrow or two.