SCHD Is Down 6% From Its Peak. Here's Why History Says It's Still a Buy.
One big reason for concern about the U.S. stock market right now is whether the S&P 500 index is relying too much on tech stocks and the artificial intelligence (AI) build-out. In case major AI companies have to scale back their investments in data centers, the AI trade might turn into a sell-off. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) offers a different way to put money to work that could diversify your investments away from a possible AI bubble. Because it's not too tech-heavy, this dividend index fund might be more resilient in the case of an AI-driven sell-off in the S&P 500. SCHD hit an all-time high of $35.31 on Aug. 24, and since then, its shares are down about 6%. Continue reading