Schwab U.S. Dividend Equity ETF™ (SCHD)

One of the easiest and lowest-cost ways to invest is by using ETF investments in your portfolio. But I have another basic requirement. The dividends must be growing and the mix of companies in the ETF must cover the business sectors sensibly. So, for example utility ETF FUTY is a good choice, but it is not diversified in the best sense because it focuses on low-growth utilities.

I prefer ETF’s like VYM, DVY, DGRO and SCHD. Today I made my first purchase of SCHD for Cindie’s ROTH IRA. SCHD has a decent dividend yield of 2.75% and a very sensible expense ratio of 0.07%. But of equal concern is dividend growth. The dividend growth looks like the featured image on this post.

In addition, the diversification is also desirable. There are 100 stock positions in this fund. The stated investment objective is “The investment seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index.

From Weiss Ratings