Schwab U.S. Dividend Equity ETF Faces Short-Term Struggles
Recent Performance Overview: The Schwab U.S. Dividend Equity ETF SCHD has seen a downturn, pushing it below its moving averages amid increasing market pressures.
This exchange-traded fund (ETF) boasts a dividend yield of 3.67% and an expense ratio of just 0.06%, making it an appealing option for investors. However, as of Monday, SCHD has declined 3.20% over the past month, closing at $27.87. Notably, it issued its last dividend payment on December 16 of the previous year.
From a technical analysis standpoint, daily moving averages suggest that SCHD may continue to struggle in the short term. The ETF’s closing price is below both its eight and 20-day simple moving averages, which stand at $28.30 and $28.82, respectively. Furthermore, its current price is also lower than the 50-day moving average of $28.65. Nevertheless, it remains above the 200-day moving average of $27.15, hinting at the potential for a long-term uptrend as it tests new support levels.
The relative strength index (RSI) currently at 31.22 signals bearish short-term conditions. Yet, since it hovers near oversold territory, a price reversal could be on the horizon. Historically, assets often retreat after reaching critical levels but can recover soon after.
Competitive Edge: When weighed against its competitors, SCHD stands out with the highest dividend yield and lowest expense ratio, according to Nasdaq data.
| Dividend ETFs | Expense Ratio | Dividend Yield | Annual Dividend |
| Schwab U.S. Dividend Equity ETF SCHD | 0.06% | 3.67% | $1.058 |
| Vanguard High Dividend Yield Index Fund ETF Shares VYM | 0.06% | 2.58% | $3.404 |
| iShares Core Dividend Growth ETF DGRO | 0.08% | 2.54% | $1.6123 |
| iShares Core High Dividend ETF HDV | 0.08% | 4.23% | $4.9179 |
| SPDR S&P Dividend ETF SDY | 0.35% | 2.27% | $3.1408 |
Despite its advantages, SCHD’s year-to-date performance lags behind several of its peers.
| Dividend ETFs | YTD Performance |
| Schwab U.S. Dividend Equity ETF | 9.04% |
| Vanguard High Dividend Yield Index Fund ETF Shares | 17.32% |
| iShares Core Dividend Growth ETF | 17.14% |
| iShares Core High Dividend ETF | 10.77% |
| SPDR S&P Dividend ETF | 9.44% |
In Conclusion: Investors should closely watch SCHD in the coming weeks to see if it can recover its footing amidst challenging market conditions.
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