Dividend-Focused SCHD ETF Faces Mounting Headwinds

The Schwab U.S. Dividend Equity ETF is confronting persistent investor outflows as market sentiment shifts away from high-dividend strategies. Despite its defensive sector positioning, the fund is posting clear losses, raising questions for income-focused investors.

Recent trading data paints a concerning picture, with the ETF firmly entrenched in a downward trajectory. Last week saw SCHD decline by 0.96%, extending to a 1.28% monthly drop. While the fund maintains a 2.80% year-over-year gain, the current momentum is troubling market observers.

The fund does maintain strong liquidity, evidenced by robust trading volume exceeding 18 million shares. Read more...