SCHD Hits Record $32.83, Tops S&P 500 and Nasdaq

The Schwab US Dividend Equity ETF (SCHD) closed at a record $32.83 last week, marking roughly a 20% gain year-to-date. The fund rose for five straight trading days before hitting the high, while the S&P 500 is up about 9% and the Nasdaq 100 about 17% so far this year.

On the daily chart, SCHD has formed a cup-and-handle pattern with a cup rim near $31.93–$32 and a low near $30.21, a depth of about $1.72. A measured move from that pattern puts a target near $33.65. The ETF has traded above its key moving averages and the Supertrend indicator. The Relative Strength Index and the Average Directional Index have moved higher. Market participants say the bullish technical case would be invalidated if SCHD falls below $31.93.

Investors point to the ETF’s sector makeup as a factor in its recent strength. SCHD’s largest weights are in energy, financials and consumer staples, sectors that are less concentrated in artificial intelligence names. Traders note the fund is being used by some as a hedge against narrow leadership among AI-focused growth stocks and could benefit if flows rotate from growth to value.

Corporate earnings are also cited as a supporting factor. First-quarter earnings across the market rose about 28.6% year-over-year, the strongest quarterly gain since late 2021, and several companies held in SCHD reported solid results for the period.

Some companies in SCHD’s holdings have announced workforce reductions tied to AI-related cost cuts, reflecting early efforts to use the technology to lower expenses. SCHD contains relatively few pure AI businesses, but observers say potential efficiency gains from technology adoption could affect profitability among its components over time.

On valuation, SCHD’s price-to-earnings ratio is about 18, compared with roughly 35 for the Nasdaq 100 and about 22 for the S&P 500. The ETF’s trailing dividend yield is near 3%, which remains modest relative to yields on some U.S. government securities.

Market participants say they are watching the technical setup, the $31.93 support level and the fund’s income profile as they assess SCHD’s outlook amid broader market moves.