SCHD overtakes VIG as biggest dividend ETF
Schwab US Dividend ETF has overtaken Vanguard Dividend Appreciation to become the biggest dividend fund, with more than $20 billion of inflows this year and assets at $113 billion.
The Schwab US Dividend ETF (NYSE: SCHD) has officially become the biggest dividend fund, overtaking the Vanguard Dividend Appreciation (NYSE: VIG), which had held the title for years. The move coincided with strong inflows and the fund’s performance this year. Db data show SCHD has taken in over $20 billion in inflows this year, lifting its total assets to $113 billion. It has gained 27% this year, outperforming the S&P 500 and Nasdaq 100 indices.
VIG has gained 8.1% this year, with inflows of $585 million. SCHD’s holdings are spread across healthcare, energy and consumer goods, and its technology exposure is the sixth-largest weighting in the fund. Instead of concentrating in technology, SCHD holds more exposure in healthcare, consumer staples, energy and industrials. That mix has made the fund appealing to investors seeking to hedge AI exposure, especially after high-profile figures such as Michael Burry and Ray Dalio warned the AI trade may be starting to look like a bubble.
Top AI names have also struggled in recent months. Nvidia (NASDAQ: NVDA) is trading at $230, below its all-time high. Micron (NASDAQ: MU) finished the week at $1,016, versus an all-time high of $1,253, while Sandisk (NASDAQ: SNDK) is down 26% from its peak. SCHD’s strong run has pushed its dividend yield down to 3.14%, below what short-term government bonds are paying.
Even so, the fund’s total return this year stands at 28.9%. SCHD: Key Technical Risks Have Emerged. SCHD chart | Source: TradingView The risk, however, is that the SCHD ETF has formed patterns that may lead to a near-term reversal. It has formed a small island reversal pattern, which occurs after a big gap followed by consolidation.
The ETF has also formed a bearish The Relative Strength Index and MACD indicators have fallen, pointing to a reversal pattern. That leaves a risk of a short-term retreat, followed by a rebound. Read Also: XRP Price Prediction as Ripple USD (RLUSD) hits $2.4 billion milestone.