Mar. 3 at 8:52 PM
The Schwab U.S. Dividend Equity ETF has surged more than 16% so far in 2026, far outpacing the S&P 500, which is up just 0.7%. The
$88 billion fund ranks fourth among more than 3,600 large-cap funds tracked by Morningstar .
Its strength reflects heavy exposure to defense and energy. Top holdings include Lockheed Martin, ConocoPhillips, Verizon, and Chevron — sectors that have outperformed as investors rotate away from high-growth tech.
Over the past three years, the ETF has delivered average annual returns of 12.6%, trailing the broader market’s AI-fueled 21% annualized gain but still solid historically. By contrast, the Vanguard Dividend Appreciation ETF has returned 16% annually over three years, helped by larger tech exposure, including Broadcom Inc. , Apple Inc. , and Microsoft .
The takeaway: as market leadership shifts from AI-driven growth to dividend-paying blue chips, funds like Schwab’s can quickly move from laggards to leaders.
$MORN $AVGO $AAPL $MSFT