SCHD Gains Over 15% in 2026, Beating S&P 500's 7% Rise

8 articles · Updated · The Motley Fool · May 13

SCHD has climbed more than 15% this year through Tuesday, outpacing the S&P 500's 7% gain as investors rotate toward dividend-focused, defensive stocks.
Investor worries about pricey tech shares, a possible AI bubble and uncertainty tied to the Iran war have boosted demand for value, helping SCHD's sector mix stand out.
Consumer staples, healthcare and energy make up more than half of SCHD, while information technology accounts for about 11%, a far smaller tech tilt than major indexes.
SCHD screens for 10 straight years of dividend increases, solid debt ratios and dependable cash flow, and currently offers a dividend yield slightly above its 3.2% decade average.
The ETF has beaten the S&P 500 in only three of the past 10 years, underscoring that its appeal is steadier income and stability rather than consistent market outperformance.

With the AI boom proving real, are investors in SCHD sacrificing future growth for today's safety?

As experts pivot to healthcare and utilities, is SCHD's defensive strategy becoming outdated?