24/7 Wall Street
26 May 2026, 13:50 UTC · 1h ago
Source · https://247wallst.com/investing/2026/05/26/schds-dividend-quality-filter-now-concentrates-42-percent-of-your-money-in-just-ten-stocks/
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SCHD concentrates 42% of its assets in its top ten positions, creating significant single-stock risk despite its image as a diversified index fund. — High concentration increases volatility and exposure to specific sector risks, such as pharma patent cliffs and energy cycles, which may deter risk-averse income investors.
-0.40SCHD significantly outperformed the S&P 500 year-to-date by 12 percentage points, driven largely by strong performance in the energy sector. — Strong relative performance attracts capital inflows and signals a rotation toward quality-screened dividend stocks.
+0.30Over a five-year horizon, SCHD trailed the S&P 500 (SPY) by 39 percentage points, returning 53% compared to SPY's 92%. — Long-term underperformance relative to the broad market suggests a drag on total returns for those prioritizing growth over income.
-0.20Vanguard's VYM offers a flatter weighting with top ten holdings rarely exceeding 25%, presenting a more diversified alternative to SCHD. — Provides a low-volatility alternative for retirees, though it comes with lower dividend yields and negative revenue growth.
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Experienced a 47% one-year gain due to rising crude prices.
Mentioned as a top holding exposed to pharma patent cliffs.
Mentioned as a top holding that passes quality screens but is subject to general sector cycles.
Mentioned only in the context of an analyst's historical success.
Mentioned as a top holding that passes quality screens.
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