SCHD Nears Top Dividend ETF as Technical Risks Appear

The Schwab U.S. Dividend ETF (SCHD) reached a record price of $35.30 and holds more than $112 billion in assets, putting it close to Vanguard’s Dividend Appreciation ETF (VIG), which has roughly $113 billion. SCHD has added nearly $20 billion in assets so far this year and is up about 27% year-to-date, outperforming the Dow Jones, Nasdaq 100 and S&P 500 over the same period. Industry flow data indicate SCHD could pass VIG in size as soon as this week.

SCHD’s portfolio is concentrated in traditional dividend-paying companies rather than major AI-focused technology names. Top holdings include Merck, Amgen and Abbott Laboratories; Merck has gained more than 40% this year and Amgen more than 30%. Other large positions include Coca-Cola, Chevron, Verizon Communications, ConocoPhillips, Home Depot, Procter & Gamble and UnitedHealth. The fund does not hold Nvidia, Micron or SanDisk.

On the chart, SCHD has traded inside an ascending channel and remains above its 50-day and 100-day exponential moving averages. A small island reversal formed after a gap up and consolidation, and the Percentage Price Oscillator (PPO) has registered a bearish crossover with lines moving downward near the channel’s upper boundary. Market participants are watching two paths: a decisive breakout above the channel would open a route toward a $40 target, while failure to sustain gains could lead to a retest of the channel’s lower side near $33.25.

SCHD was created to track dividend-paying U.S. companies and has grown as investors sought income and lower-volatility exposure. Its five-year total return is about 62%, compared with roughly 80% for the broad-market ETF VOO and 91.4% for QQQ.

Fund flows and relative performance will affect whether the ETF sustains momentum or sees stronger profit-taking in the near term.