This Top Dividend ETF Is Making Some Major Changes
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is one of the largest exchange-traded funds (ETFs) focused on dividend stocks. The fund has over $77.5 billion in assets under management (AUM), making it the second-biggest fund geared specifically toward dividend investing. The Schwab U.S. Dividend Equity ETF doesn't just invest in any dividend stock. It focuses on companies with the highest-quality payouts. The fund tracks the Dow Jones U.S. Dividend 100 Index, which selects stocks based on their ability to pay sustainable dividends that steadily grow.The managers of that index screen companies to ensure they meet and maintain the highest-quality dividend standards. Once a year, they remove companies that no longer pass their review and replace them with higher-quality dividend stocks. The index recently completed its annual reconstitution, which led the dividend ETF to make some major changes. Continue reading
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is one of the largest exchange-traded funds (ETFs) focused on dividend stocks. The fund has over $77.5 billion in assets under management (AUM), making it the second-biggest fund geared specifically toward dividend investing.
The Schwab U.S. Dividend Equity ETF doesn't just invest in any dividend stock. It focuses on companies with the highest-quality payouts. The fund tracks the Dow Jones U.S. Dividend 100 Index, which selects stocks based on their ability to pay sustainable dividends that steadily grow.
The managers of that index screen companies to ensure they meet and maintain the highest-quality dividend standards. Once a year, they remove companies that no longer pass their review and replace them with higher-quality dividend stocks. The index recently completed its annual reconstitution, which led the dividend ETF to make some major changes.
