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SCHD ETF stock is beating the S&P 500 and Nasdaq 100 this year


Crispus Nyaga
для Invezz
SCHD ETF stock is beating the S&P 500 and Nasdaq 100 this year

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AI generated image of stock market bull and bear on wall street

The Schwab US Dividend Equity ETF (SCHD) is doing well this year and is constantly beating the broader market, including the S&P 500 and the Nasdaq 100 indices. 

SCHD has jumped by 8.50% this year and is now hovering at its all-time high, while the S&P 500 has risen by just 1%. This article explores the main reason why the SCHD ETF is thriving this year.

SCHD ETF is thriving as rotation from AI companies continue 

The SCHD ETF is firing on all cylinders this year and is up by nearly 30% from its lowest level in April last year. 

The main reason behind the rally is the ongoing rotation from technology stocks to value names.

A closer look shows that most technological stocks have crashed and moved into either a correction or a bear market.

NVIDIA, a top player in the AI industry, has dropped by 10% from its highest level in 2025. Similarly, Microsoft stock has plummeted to $430, down by 22% from its all-time high.

Other software companies, including popular names like Palantir, ServiceNow, Intuit, and Salesforce, have all crashed.

On the other hand, investors have turned to other value companies that have underperformed the broader market in the past few months.

Soaring energy prices have boosted the SCHD stock 

The other main reason behind the ongoing SCHD stock rally is the energy sector. Data shows that the energy segment is the biggest part of the index, with companies in the industry accounting for 20% of the fund.

Energy stocks have jumped in the past few months as crude oil has soared. Brent, the global benchmark, rose to $70 as the risk that the United States will attack Iran rose. 

Data shows that the State Street Energy Select Sector ETF (XLE) jumped to a high of $51, up by 40% from its lowest level in April last year. The ETF has jumped to a record high.

Some of the top energy stocks in the SCHD ETF are Chevron, ConocoPhillips, EOG Resources, and Valero Energy.

Corporate earnings to impact its performance 

The SCHD ETF stock will have some notable catalysts this week. The most important one will be key corporate earnings, including top companies like Palantir, Walt Disney, AMD, Merck, Amgen, Pfizer, Alphabet, Eli Lilly, AbbVie, Qualcomm, Boston Scientific, ConocoPhilips, Bristol-Myers Squibb, ICE, Philip Morris, and Biogen.

These companies will publish their earnings, which will provide more information about their performance in the fourth quarter. Analysts expect the report to show that these companies continued doing well in the quarter.

The other potential catalysts for the SCHD ETF this week will be the upcoming US non-farm payrolls data, which will come out on Friday. It will also react to the decision by Donald Trump to nominate Kevin Warsh as the next Federal Reserve Chair.

SCHD ETF stock technical analysis 

SCHD ETF stock
SCHD stock chart | Source: TradingView

The daily timeframe chart shows that the SCHD ETF stock has been in a strong uptrend in the past few months. It jumped from a low of $23.20 in April last year to the current $29.82.

The fund has remained constantly above the 50-day and 100-day Exponential Moving Averages (EMA). It also moved above the Supertrend indicator and the Ichimoku cloud.

The Average Directional Index (ADX) has jumped to 43, its highest level in over a year, and much higher than last year’s low of 9.68. A soaring ADX indicator is a sign that the momentum is growing.

Therefore, the most likely scenario is where it continues rising as bulls target the next key resistance level at $35. A drop below the key support at $28 will invalidate the bullish outlook.

The post SCHD ETF stock is beating the S&P 500 and Nasdaq 100 this year appeared first on Invezz

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SCHD ETF stock is beating the S&P 500 and Nasdaq 100 this year


Crispus Nyaga
для Invezz
SCHD ETF stock is beating the S&P 500 and Nasdaq 100 this year

Поделиться:

AI generated image of stock market bull and bear on wall street

The Schwab US Dividend Equity ETF (SCHD) is doing well this year and is constantly beating the broader market, including the S&P 500 and the Nasdaq 100 indices. 

SCHD has jumped by 8.50% this year and is now hovering at its all-time high, while the S&P 500 has risen by just 1%. This article explores the main reason why the SCHD ETF is thriving this year.

SCHD ETF is thriving as rotation from AI companies continue 

The SCHD ETF is firing on all cylinders this year and is up by nearly 30% from its lowest level in April last year. 

The main reason behind the rally is the ongoing rotation from technology stocks to value names.

A closer look shows that most technological stocks have crashed and moved into either a correction or a bear market.

NVIDIA, a top player in the AI industry, has dropped by 10% from its highest level in 2025. Similarly, Microsoft stock has plummeted to $430, down by 22% from its all-time high.

Other software companies, including popular names like Palantir, ServiceNow, Intuit, and Salesforce, have all crashed.

On the other hand, investors have turned to other value companies that have underperformed the broader market in the past few months.

Soaring energy prices have boosted the SCHD stock 

The other main reason behind the ongoing SCHD stock rally is the energy sector. Data shows that the energy segment is the biggest part of the index, with companies in the industry accounting for 20% of the fund.

Energy stocks have jumped in the past few months as crude oil has soared. Brent, the global benchmark, rose to $70 as the risk that the United States will attack Iran rose. 

Data shows that the State Street Energy Select Sector ETF (XLE) jumped to a high of $51, up by 40% from its lowest level in April last year. The ETF has jumped to a record high.

Some of the top energy stocks in the SCHD ETF are Chevron, ConocoPhillips, EOG Resources, and Valero Energy.

Corporate earnings to impact its performance 

The SCHD ETF stock will have some notable catalysts this week. The most important one will be key corporate earnings, including top companies like Palantir, Walt Disney, AMD, Merck, Amgen, Pfizer, Alphabet, Eli Lilly, AbbVie, Qualcomm, Boston Scientific, ConocoPhilips, Bristol-Myers Squibb, ICE, Philip Morris, and Biogen.

These companies will publish their earnings, which will provide more information about their performance in the fourth quarter. Analysts expect the report to show that these companies continued doing well in the quarter.

The other potential catalysts for the SCHD ETF this week will be the upcoming US non-farm payrolls data, which will come out on Friday. It will also react to the decision by Donald Trump to nominate Kevin Warsh as the next Federal Reserve Chair.

SCHD ETF stock technical analysis 

SCHD ETF stock
SCHD stock chart | Source: TradingView

The daily timeframe chart shows that the SCHD ETF stock has been in a strong uptrend in the past few months. It jumped from a low of $23.20 in April last year to the current $29.82.

The fund has remained constantly above the 50-day and 100-day Exponential Moving Averages (EMA). It also moved above the Supertrend indicator and the Ichimoku cloud.

The Average Directional Index (ADX) has jumped to 43, its highest level in over a year, and much higher than last year’s low of 9.68. A soaring ADX indicator is a sign that the momentum is growing.

Therefore, the most likely scenario is where it continues rising as bulls target the next key resistance level at $35. A drop below the key support at $28 will invalidate the bullish outlook.

The post SCHD ETF stock is beating the S&P 500 and Nasdaq 100 this year appeared first on Invezz

Читать материал на Invezz

В этой новости

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В этой новости

Поделиться:

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