SCHD Gains 27% YTD, Beating Nasdaq 100 as Value Rotation Lifts Dividend Stocks

3 articles · Updated · 24/7 Wall St. · Aug 18

SCHD has returned 27% year to date and 30% over 12 months, topping the Nasdaq 100’s 19% and 26% as a retirement-focused dividend ETF unexpectedly leads.
Value rotation drove most of that outperformance: investors cut the premium paid for megacap AI names and favored cash-generative sectors where SCHD is concentrated, including healthcare, energy and consumer staples.
March’s index reconstitution added a second boost by reshaping the portfolio; Qualcomm and Texas Instruments became the top two holdings, helping SCHD capture the semiconductor rebound without owning the priciest growth stocks.
The fund had about $95 billion in net assets as of May, and inflows followed performance, though shares near $34 now imply a lower forward yield than buyers in prior years received.
For new investors, the report argues SCHD still fits best as a long-term core dividend holding with a $1.05 trailing 12-month distribution, not as a growth substitute simply because it beat the Nasdaq 100 this year.