The market’s winningest theme, growth stocks, have finally started to lose ground since 2026. One of the most successful ETFs, the Vanguard Growth ETF, is down 7% year-to-date, lagging behind other S&P 500 funds. Several factors suggest that growth’s run might be over: stagnant labor market growth, high inflation, and rising debt levels.
In contrast, the Schwab U.S. Dividend Equity ETF has performed well in recent challenging markets. With its focus on financially sound companies, strong balance sheets, and lower debt levels, it tends to withstand economic slowdowns better than other funds. This strategy considers factors like cash-flow-to-debt ratio, return on equity, and dividend history.
The Schwab U.S. Dividend Equity ETF has top sector holdings in energy, consumer staples, healthcare, and industrials, positioning the portfolio for market favoring trends. It’s also back in the top 1% of Morningstar’s Large Value category, thanks to its defensive nature. Historically, this ETF declines less than the S&P 500 in challenging markets, making it a valuable option for minimizing losses.
Source: https://www.fool.com/investing/2026/03/15/growth-stocks-are-getting-riskier-this-etf-histori