So, this Schwab U.S. Dividend Equity ETF – SCHD – is suddenly doing well. After years of… well, let’s just say it wasn’t exactly setting the world on fire. People are acting like this is some kind of miracle. Like they predicted this. Please. It’s a market. Things bounce around. It doesn’t require a genius.
It’s now the second-largest dividend ETF, apparently. Eighty-five billion dollars! That’s… a lot of money chasing yield. Makes you wonder what everyone else is missing, doesn’t it? Or maybe they aren’t missing anything and it’s just a temporary blip. I’m leaning towards the blip. They were bragging about eight years of being in the top third of Morningstar’s Large Value category. Top third. That’s… participation trophy territory. And keeping pace with the S&P 500? That’s like being slightly less bad than everyone else. It’s not a ringing endorsement.
Then came the years you don’t talk about. The megacap tech stocks, the AI hype… SCHD was just… there. Underperforming. Badly. Bottom quartile. Bottom two percent in 2025. It’s infuriating! You build a portfolio based on some… principle… and then the market decides that principle is irrelevant. It’s like ordering a pastrami on rye and getting a tuna salad. What is happening?
And now, 2026. Top one percent. Top dividend ETF. They’re acting like they invented sliced bread. It’s just… timing. Pure luck. They’re saying it’s about being “perfectly positioned.” Perfectly positioned for what exactly? To benefit from a market that finally decided to acknowledge value stocks? That’s not skill, that’s waiting for the tide to turn.
Nearly 40% in Energy and… Staples?
Okay, so they’re heavily weighted in energy and consumer staples. Twenty percent and nineteen percent respectively. And they’re proud of this. Like it’s some stroke of genius. “Only a dozen ETFs have more in consumer staples!” So what? People need toilet paper, I get it. But it doesn’t mean it’s a brilliant investment strategy. It just means they anticipated people continuing to, you know, live. It’s the most basic prediction you can make!
Energy is up 27 percent. Staples up 15 percent. And suddenly, this ETF is a winner. It’s like betting on the sun rising. You’re not exactly taking a huge risk.
“Deep Value Tilt” – A Fancy Way of Saying “We Got Lucky”
They call it a “deep value tilt.” A price-to-earnings ratio of 18. That’s… not exactly screaming “value.” The Schwab Large Cap ETF has a P/E of 28. So, they’re slightly less expensive. Congratulations. They’re comparing it to Vanguard Growth. Of course, value is outperforming growth! It’s cyclical! It’s been happening for decades! It’s not some revolutionary discovery.
The Sectors They Didn’t Bet On
Financials, tech, consumer discretionary, communication services. Those are the worst-performing sectors. And this ETF conveniently has low allocations to them. It’s like dodging potholes. It doesn’t require a PhD. They’re saying it’s “perfectly positioned to take advantage of what’s in favor.” It’s not taking advantage, it’s avoiding disaster. There’s a difference.
Look, it’s a fine ETF. It focuses on financially healthy companies. That’s… responsible. But let’s not pretend it’s some kind of investment masterpiece. It’s benefiting from a temporary shift in market sentiment. And when that sentiment shifts again, it’ll be back to being… just another ETF. Mark my words. And don’t even get me started on the fees. They’re always nickel and diming you.
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2026-03-09 06:32