The Schwab U.S. Dividend Equity ETF has doubled the S&P 500’s 10.36% gain in 2026, driven by large-cap value and energy exposure.
The Schwab U.S. Dividend Equity ETF (SCHD) has returned 21.62% year-to-date as of July 21, 2026, outpacing the Vanguard S&P 500 ETF (VOO), which gained 10.36%. The outperformance stems from SCHD’s focus on dividend consistency, financial strength, and an overweight position in energy and large-cap value stocks.
SCHD’s strategy, which includes annual reconstitution and a 0.06% expense ratio, lagged during the AI-driven rally of 2024 and 2025. Investor sentiment shifted in 2026 as value stocks rebounded, drawing renewed attention to the fund’s disciplined approach.
The ETF’s methodology screens for profitability and dividend growth, avoiding high-yield traps. Its sector positioning and lower volatility have appealed to investors amid broader market rotations.