Schwab U.S. Dividend Equity ETF (SCHD) posts high yield and strong 2025‑26 returns

The Schwab U.S. Dividend Equity ETF (SCHD) emphasizes current dividend yield, charging a 0.06% expense ratio and delivering a 3.2‑3.3% trailing‑12‑month distribution yield—the highest among major dividend ETFs. Over the past year the fund returned about 24%, outpacing Vanguard’s Dividend Appreciation ETF (VIG), which returned roughly 20% and offers a lower 1.5% yield. SCHD’s portfolio of 103 holdings is weighted toward technology (19%), consumer‑defensive (18%) and healthcare (18%) stocks, with top positions in Texas Instruments, Qualcomm and UnitedHealth Group. Its beta of 0.68 indicates lower volatility than the broader market. The related Schwab International Dividend Equity ETF (SCHY) applies the same cash‑flow quality filter to developed‑market companies outside the United States, managing roughly $71.6 billion, returning about 22% annually, and paid a quarterly dividend of $0.1818 in Q1 2026. Both funds aim to protect investors from dividend traps by focusing on companies with strong cash‑flow generation and consistent dividend growth.