Significant Outflow from U.S. Dividend Growth ETF
A significant outflow of funds is being observed from the U.S. Dividend Growth ETF, Schwab U.S. Dividend Equity (SCHD). Despite the overall rise in U.S. stock markets this year, SCHD has maintained a lower performance as it primarily invests in value stocks, contrary to the current bullish trend toward technology stocks. Over the past six months, approximately $1.93 billion has flowed out of SCHD, placing it at the bottom ranks in terms of net inflow among 3,243 ETFs.
This outflow is attributed to the underperformance or negative returns of energy and healthcare-related stocks included in SCHD's portfolio. Compare that with the recent surge in AI-related tech stocks, investors appear more optimistic about the potential returns from AI stocks. Consequently, many experts are advising an asset allocation toward safe-haven assets like gold.
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