This ETF is getting an oil-fueled boost.
The Schwab U.S. Dividend Equity ETF (SCHD +0.13%) is one of the largest and most popular ETFs focused on dividend stocks. The fund offers a high current income yield (3.5% over the last 12 months). It has also delivered robust returns over the years.
While the fund delivered an underwhelming performance last year — it only generated a 0.4% return — it has gone hyperbolic in early 2026, surging nearly 15%. That has vastly outperformed the S&P 500’s less than 1% rise this year. Here’s the secret fuel source driving its outperformance.
Image source: Getty Images.
A hidden fuel source
The Schwab U.S. Dividend Equity ETF tracks an index (Dow Jones U.S. Dividend 100 Index) designed to measure the performance of 100 top dividend stocks. It screens companies based on several factors, including dividend yield and five-year dividend growth rate….
