Schwab US Dividend Equity Fund (SCHD), which is a Schwab ETF, is performing well and consistently beating other markets such as the S&P 500 index and Nasdaq 100 index.
SCHD is at an all-time record high after a jump of 8.50% in 2018. The S&P 500, on the other hand, has only risen by 1%. The main reason the SCHD is thriving in this year’s article.
SCHD ETF thrives as AI company rotation continues
The SCHD ETF has been on fire this year, and it is now up nearly 30% since its low point in April of last year.
This is mainly due to the fact that the market has been moving away from high-tech stocks and towards value names.
If you look closely, it is clear that the majority of technology stocks are in a crash and have either entered a correction market or bear market.
NVIDIA has fallen by 10 percent from the highest point it reached in 2025. Microsoft’s stock, which was at $430 in 2025, has fallen by 22% to $430.
Several other software companies have also crashed, including well-known names such as Palantir and ServiceNow. Intuit has also been affected.
Investors have also turned their attention to value-oriented companies, which have outperformed the market over the last few months.
The SCHD has risen in value due to the rising energy costs
Energy is another major reason for the current SCHD rally. The data shows that energy companies account for the largest part of the index.
Crude oil prices have been soaring in recent months, and this has led to a surge in energy stocks. Brent, the benchmark global price, climbed to $70 on the back of the increased risk that Iran will be attacked by the United States.
State Street Energy Select Sector (XLE), according to data, has risen by 40 percent from its April 2016 low. ETF is at a new record.
The SCHD ETF includes Chevron Energy, ConocoPhillips Energy, EOG Resource, and Valero Energy.
The impact of corporate earnings on its performance
This week, the SCHD ETF will be a notable catalyst. Most important will be the key earnings of top corporations like Palantir and Walt Disney.
The earnings report will give more details about the performance of these companies in the last quarter. Analysts are expecting the earnings report to reveal that the companies did well during the fourth quarter.
This week, the upcoming US Non-Farm Payrolls Data will also be a catalyst for the SCHD. These data will be released on Friday. The ETF will also respond to Donald Trump’s decision to name Kevin Warsh to be the new Federal Reserve chair.
Technical analysis of the SCHD ETF Stock
Source: TradingView
Charts of the daily timeframe show that the SCHD stock is in a strong upward trend in recent months. The stock has risen from $23.20, the low in April of last year, to $29.82 today.
Funds have consistently stayed above 50-day and100-day exponential moving averages. The Supertrend indicator, the Ichimoku Cloud and also the Supertrend moved up.
The Average Directional Index has increased to 43. This is its highest level since over a month and much higher that the low point of last year (9.68). An ADX that is rising is an indication of a growing momentum.
The most probable scenario would be that it will continue to rise as bulls aim for the next major resistance level of $35. The bullish forecast will be invalidated if the price drops below $28, the main support level.
The post SCHD stock beats the S&P500 and Nasdaq this year could be updated as new information unfolds.
