SCHD’s ‘Anti-AI’ Stance Outpaces S&P 500 and Nasdaq 100
SCHD has gained 19% year-to-date, drawn over $12 billion in net inflows and grown assets above $96 billion while keeping limited exposure to AI and heavy weightings in traditional sectors.
The Schwab US Dividend Equity ETF (SCHD) has returned 19% year-to-date and recorded more than $12 billion in net inflows, lifting its assets to over $96 billion. The ETF’s performance outpaced Invesco’s QQQ (15.2%), Vanguard’s VOO (7.53%) and JPMorgan’s JEPI (7.0%) for the period. SCHD’s inflows this year exceeded those of other large dividend ETFs such as DGRO and VYM.
SCHD’s portfolio has limited direct exposure to artificial intelligence-related companies. The fund is concentrated in consumer staples, healthcare, energy and industrials, sectors that account for the bulk of its holdings. Investors shifted capital into SCHD even as several market benchmarks attracted attention for AI-driven gains.
UnitedHealth Group is the fund’s largest holding at about 4.5% of the portfolio. UnitedHealth’s share price has risen more than 80% from a low near $234 last year, and the company’s market capitalization has moved above $388 billion. Merck is the ETF’s second-largest holding after a rally of roughly 65% from its 2025 lows and is trading closer to previous peaks.
Other top positions in SCHD include Home Depot, Abbott Laboratories, Procter & Gamble, Amgen, Coca-Cola and Verizon Communications. These companies have limited direct exposure to the current AI investment cycle.
Market participants have treated SCHD as a technical hedge during periods when high-growth, AI-linked stocks pulled back. Earlier in the year, SCHD reached a record high while several AI-focused names declined, and that price action correlated with renewed inflows into the fund.
On technical charts, SCHD bottomed near $30.20 in March and has traded inside an ascending channel since then. The ETF has remained above its 50-day and 100-day moving averages and has formed a cup-and-handle pattern. The year-to-date high is $32.92; some traders identify about $35 as a potential next level if the price closes above the recent high.
SCHD’s results and flows this year reflect increased allocations into dividend-oriented strategies within the U.S. equity market alongside continued interest in AI-driven growth names.
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