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For investors seeking momentum, Schwab U.S. Dividend Equity ETF (SCHD - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 24.4% from its 52-week low price of $44.03/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SCHD in Focus
SCHD provides exposure to dividend yielding U.S. stocks issued by companies with a record of consistent dividend payments. It has key holdings in consumer staples, information technology, industrials and consumer discretionary. The fund charges 6 basis points in annual fees (see: all the Large Cap Value ETFs here).
Why the Move?
The dividend corner of the broad U.S. stock market has been an area to watch out for lately, given the prospects of rate cuts anytime soon. This has raised the appeal for dividend investing. Additionally, trade war and global slowdown concerns make investors jittery. In such a scenario, dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. This is because dividend products offer the best combination of safety in the form of payouts and stability as these are less immune to large swings in stock prices.
More Gains Ahead?
Currently, SCHD has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely some promise for those who want to ride this surging ETF a little further.
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Dividend ETF (SCHD) Hits New 52-Week High
For investors seeking momentum, Schwab U.S. Dividend Equity ETF (SCHD - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 24.4% from its 52-week low price of $44.03/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SCHD in Focus
SCHD provides exposure to dividend yielding U.S. stocks issued by companies with a record of consistent dividend payments. It has key holdings in consumer staples, information technology, industrials and consumer discretionary. The fund charges 6 basis points in annual fees (see: all the Large Cap Value ETFs here).
Why the Move?
The dividend corner of the broad U.S. stock market has been an area to watch out for lately, given the prospects of rate cuts anytime soon. This has raised the appeal for dividend investing. Additionally, trade war and global slowdown concerns make investors jittery. In such a scenario, dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. This is because dividend products offer the best combination of safety in the form of payouts and stability as these are less immune to large swings in stock prices.
More Gains Ahead?
Currently, SCHD has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely some promise for those who want to ride this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>