SCHD Reconstitution is complete!
Let's take a look under the hood at the Schwab U.S. Dividend Equity ETF!
SCHD Reconstitution takes place annually on the 3rd Friday in March.
It’s done.
So what does this mean for shareholders?
In today’s issue we’ll review:
The 23 companies removed from SCHD
The 23 companies added to SCHD
Changes to the top 10 holdings
Diversification
For the details on the Reconstitution process, you can read all about it here:
🔻23 Companies Removed
Below are the companies that have been removed from SCHD as a result of Reconstitution:
3M
ADVANCE AUTO PARTS INC
ALLSTATE CORP
AUTOMATIC DATA PROCESSING INC
BLACKSTONE INC
BROADCOM INC
ENNIS INC
FEDERAL AGRICULTURAL MORTGAGE NON
FIRST AMERICAN FINANCIAL CORP
HANMI FINANCIAL CORP
ILLINOIS TOOL INC
INTERNATIONAL PAPER
KELLANOVA
LAZARD INC
MERCK & CO INC
NEWMONT
NORTHERN TRUST CORP
NRG ENERGY INC
PARAMOUNT GLOBAL CLASS B
STEWART INFO SERVICES CORP
STURM RUGER INC
TYSON FOODS INC CLASS A
WILLIAMS SONOMA INC
Top 10 Prior to Reconstitution:
(Note that Broadcom and Merck & Co are no longer in SCHD)
✅ 23 Companies added to SCHD
SCHD also goes through a rebalancing quarterly which occurred along with the reconstitution.
This ensures that no one holding makes up more than 4% of the ETF.
And with that, here are the new Top 10 Holdings of SCHD:
What are you thoughts on the new top 10 holdings and the recent additions?
Some pretty significant changes are seen in the sector diversification of the ETF.
Most notable is the reduction of holdings in the Information Technology Sector with the loss of semiconductor giant Broadcom; moving from 12.7% of holdings down to 4.6%!
📅 When do shareholders get paid?
Below is the Distribution Schedule for shareholders of SCHD
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Disclaimer
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