After a Hot Start to the Year, the Schwab U.S. Dividend Equity ETF (SCHD) Has Gone Practically Nowhere for 5 Months. Is It a Buying Opportunity for Value Investors?
The Schwab U.S. Dividend Equity ETF is a well-diversified fund for generating passive income from stocks.
Overview
With just under $100 billion in net assets and a 3.3% yield, the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is an ultrapopular exchange-traded fund (ETF) for generating passive income. The fund is crushing the S&P 500 index (SNPINDEX: ^GSPC) year to date -- up 18.1%, compared to 10.7% for the index. But the bulk of those gains came in the first six weeks of the year as investors gravitated toward value stocks.
Over the last five months, the Schwab U.S. Dividend Equity ETF is only up 3.4%, while the S&P 500 is up 10.9% -- driven by massive gains in megacap tech stocks.
Details
Here's why the Schwab U.S. Dividend Equity ETF has stalled out. Let's determine whether it's a buying opportunity for patient investors.
Source
Originally published at www.fool.com.