Schwab's SCHD Offers AI-Proof Shield for Long-Term Investors

The AI market's rapid growth has led to a buying frenzy in top chip and infrastructure stocks, propelling the S&P 500 to record highs. However, Grand View Research predicts that the global AI market could still expand at a 30.6% CAGR from 2026 to 2033.

A slowdown in AI spending and potential rate hikes, inflation, and geopolitical conflicts could trigger a downturn in these top stocks. To protect against this risk, investors may consider shifting their cash into the Schwab U.S. Dividend Equity ETF (SCHD), which tracks the Dow Jones U.S. Dividend 100 Index.

SCHD holds $112 billion in assets and passively tracks the index's top-ranked stocks with a market cap of at least $500 million, annual dividend growth for ten consecutive years, and a strong financial profile. Its top holdings include Merck, Amgen, Abbott Laboratories, Coca-Cola, and Chevron.