Schwab US Dividend ETF Reaches Record High, Technical Risks Loom
The Schwab US Dividend ETF (SCHD) has been on an impressive run this year, reaching a record high of $35.30 and outperforming popular indices like the Dow Jones, Nasdaq 100, and S&P 500.
This surge in performance has allowed SCHD to add nearly $20 billion in assets this year, making it one of the best gainers in the ETF industry. As a result, it is on track to become the biggest dividend fund in the world, potentially overtaking Vanguard Dividend Appreciation (VIG) as soon as this week.
The fund's strong rally has been driven by its holdings in traditional industries, with top companies like Merck, Amgen, and Abbott Laboratories experiencing significant gains. However, technical analysis suggests that the fund may be at risk of a brief reversal, as it has formed an ascending channel and is now close to the upper side.