Investors are advised to be cautious of the Schwab U.S. Dividend Equity ETF (SCHD) due to its underperformance compared to broader market indices like the S&P 500, NASDAQ, and Dow Jones Industrial Average. Despite focusing on high dividend-yielding stocks with strong financials, SCHD’s returns have lagged behind.
Alternative investment options, such as individual high-yield stocks like AT&T and Truist Financial, offer better returns and higher yields than SCHD. The ETF’s increased exposure to financials adds risk, and its yield is relatively low compared to other investment opportunities like 30-year treasury notes.
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Source: https://seekingalpha.com/article/4750372-schd-great-way-to-miss-out-on-wealth-accumulation