New to SCHD? This guide covers everything you need to know about the Schwab U.S. Dividend Equity ETF — what it is, how it works, why investors love it, and how to start building a position. Use our SCHD Calculator alongside this guide to model your own investment.
What Is SCHD?
SCHD is the Schwab U.S. Dividend Equity ETF, launched in October 2011. It tracks the Dow Jones U.S. Dividend 100™ Index, which selects 100 U.S. companies based on dividend quality metrics: cash flow to total debt, return on equity, dividend yield, and 5-year dividend growth rate. This screening process results in a portfolio of financially strong, consistent dividend payers.
Key SCHD Facts for 2026
- Ticker: SCHD
- Exchange: NYSE Arca
- Issuer: Charles Schwab Investment Management
- Current Yield: ~3.5%
- 10-Year Dividend CAGR: ~10.6%
- Expense Ratio: 0.06%
- AUM: $76B+
- Holdings: 100 U.S. companies
- Distribution Frequency: Quarterly (March, June, September, December)
Why Do Investors Love SCHD?
SCHD combines three things that are hard to find together: a meaningful current yield (~3.5%), strong dividend growth (~10.6% annually over 10 years), and a rock-bottom expense ratio (0.06%). Most ETFs that offer high yield sacrifice growth, and most growth-focused ETFs sacrifice yield. SCHD threads the needle.
How to Start Investing in SCHD
- Open a brokerage account (Schwab, Fidelity, Vanguard, or others)
- Search for ticker: SCHD
- Place a buy order — fractional shares available at many brokers
- Enable DRIP (dividend reinvestment) in your account settings
- Set up recurring monthly contributions to build your position over time
Use our free SCHD Calculator to see what your investment could grow to over 10, 20, or 30 years.
This article is for educational purposes only and does not constitute financial advice.