Told You to Forget SCHD. It Just Beat the S&P by 12 Points, Its Biggest Win Ever

The Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD) has notably outperformed the S&P 500 in 2026, prompting renewed attention on the dividend-focused fund after it lagged during a tech-led rally. Through the first eight months of 2026, SCHD returned 27.92% versus 13.85% for the S&P 500 through Aug. 14, creating a wide year-to-date gap. Over the trailing one-year period, SCHD gained 30.88% compared with 20.37% for the index. The article attributes the strength to a rotation into areas including analog semiconductors, healthcare recovery names, energy, and telecom “cash cows,” with SCHD described as a low-cost, broad expression of that trade.