SCHD Faces Fresh Downturn as Value Signals Falter

A Seeking Alpha analysis argues the Schwab U.S. Dividend Equity ETF (SCHD) is poised to underperform the S&P 500 again after a recent rally and its annual reconstitution. The author contends SCHD’s methodology overemphasizes dividend metrics that no longer capture true value or growth, criticizes the fund’s energy overweight and stock removals, and warns the reconstitution process may hinder performance during market rebounds and periods of lower oil prices. The piece remains bearish on SCHD and labels it a Sell.