Let's Get Real: SCHD Has Been A Chronic Underperformer

  • SCHD's 3.9% yield is attractive, but total return performance has lagged broad market ETFs like SPY and VTI over most timeframes. The fund's high concentration in its top holdings increases risk, where underperformance by a few names can drag down overall returns. SCHD has not been tested in a prolonged recession. High-yielding stocks often see dividends cut and share prices fall in such an environment.