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Schwab Asset Management executed stock splits for 20 ETFs , with October 11th being the first day each ETF is trading at its split-adjusted price. Schwab's U.S. Dividend Equity ETF (SCHD), one of the companies more popular ETFs underwent a 3-for-1 split. Here’s a breakdown of what this means for current and potential investors, along with insights into who the fund is best suited for and a look at its top holdings.
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- SCHD wrapped up a 3-1 stock split with trading commencing at the new price on Oct. 11th
- The new price for the ETF is $28.34
- Current owners of SCHD lost or gained no value through the split.
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Impact of the SCHD 3-for-1 Split
For current investors already holding or looking to buy SCHD, the split doesn't change the overall value of their investments, but does change the number of shares they would own and the price per share will be lower.
- Lower Share Price, Same Investment Value : Before the split, SCHD was trading at $85.02 per share. After the 3-for-1 split, the price per share is approximately $28.34 , but shareholders will now own three times as many shares. This means if you held 100 shares worth $8,502 pre-split, you would now have 300 shares, but your total investment value remains the same.
- Increased Accessibility : Lowering the price per share makes SCHD more accessible to individual investors who may prefer to buy full shares rather than fractional ones. The new lower price point could appeal to cost-conscious investors looking to add dividend-focused ETFs to their portfolios without a high entry price.
Who Is SCHD Right For? SCHD is a fund designed for income-focused investors who want exposure to high-quality U.S. dividend-paying companies . The ETF targets firms that have a strong track record of paying consistent dividends, making it a great fit for:
- Long-term, income-seeking investors : Those who want to receive steady dividends while also benefitting from capital appreciation.
- Retirees or near-retirees : Investors who are looking for a reliable income stream in retirement, as SCHD focuses on companies with a history of dividend growth.
- Cost-conscious investors : With its low expense ratio of 0.06%, SCHD offers a low-cost option to gain exposure to large, stable U.S. companies with strong dividend histories.
Top Holdings in SCHD The fund currently holds 103 stocks, and its top holdings are blue-chip companies with strong financials and robust dividend-paying capabilities. Below are the top 10 holdings in SCHD, which make up a significant portion of the fund:
| Ticker | Name | Percent of Assets | Market Value |
| HD | Home Depot Inc | 4.41% | $2.8B |
| BLK | BlackRock Inc | 4.23% | $2.6B |
| CSCO | Cisco Systems Inc | 4.22% | $2.6B |
| CVX | Chevron Corp | 4.16% | $2.6B |
| BMY | Bristol Myers Squibb | 4.11% | $2.6B |
| LMT | Lockheed Martin Corp | 4.07% | $2.5B |
| VZ | Verizon Communications Inc | 4.06% | $2.5B |
| PFE | Pfizer Inc | 4.05% | $2.5B |
| TXN | Texas Instruments Inc | 3.89% | $2.4B |
| ABBV | AbbVie Inc | 3.87% | $2.4B |
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