SCHD’s holdings and sector mix are the foundation of its steady performance – think of it as the lineup that keeps your financial stable running smoothly. If you want the big picture on what makes the SCHD ETF tick, understanding what’s inside isn’t just for Wall Street pros; it’s how everyday investors can spot strengths, weaknesses, and the hidden gears that make this fund tick.
What Are SCHD’s Holdings?
Let’s face it: most ETF buyers glance at a ticker and move on. But do you ever wonder what companies are actually working for you behind the scenes? SCHD’s holdings are the backbone of its dividend payouts and risk profile. In plain English, “holdings” are simply the stocks the fund owns – each one a workhorse contributing to your returns. The sector breakdown? That’s how the barn is organized – consumer staples in one stall, healthcare in another, energy and industrials rounding out the mix. If you’re curious about how this blend impacts yield and performance, the yield and performance analysis has you covered.
Think of SCHD’s portfolio as a barn full of reliable horses. Some are thoroughbreds, others steady plodders, but all have a job: deliver dividends and keep the fund on track.
Top Holdings – Who’s Pulling the Weight?
When I first checked SCHD’s lineup, I was struck by how many household names showed up. As of May 2025, here’s the current roster of top performers:
| Company | Sector | Weight (%) |
| Verizon | Communication | 4.33 |
| Coca-Cola | Consumer Staples | 4.29 |
| ConocoPhillips | Energy | 4.23 |
| Altria Group | Consumer Staples | 4.21 |
| Lockheed Martin | Industrials | 4.16 |
| Cisco Systems | Technology | 4.16 |
| Home Depot | Consumer Discr. | 4.09 |
| Texas Instruments | Technology | 4.04 |
| Chevron | Energy | 3.82 |
| AbbVie | Healthcare | 3.66 |
| Amgen | Healthcare | 3.64 |
| PepsiCo | Consumer Staples | 3.59 |
Notice the balance? No single company dominates the stable – each contributes a manageable slice, which helps keep risk in check. It’s a lineup designed for resilience, not drama.
Sector Allocation – Balancing the Barn
Why do some sectors get more hay than others? SCHD’s sector allocation isn’t random; it’s a calculated bet on where steady dividends are most likely to come from. As of May 2025, the fund leans toward consumer staples (19.4%), energy (19.1%), healthcare (14.2%), and industrials (13.1%).
Imagine your portfolio as a barn: consumer staples are the sturdy beams, energy is the roof, healthcare and industrials are the walls. If one part of the barn takes a hit, the others help keep things standing. This balance is what makes SCHD less volatile than funds chasing the latest market fads.
How Holdings Change – Reconstitution in Action
Every March, SCHD’s index reviews its lineup, swapping out underperformers and bringing in new contenders. If you want to understand the mechanics and impact of these changes in SCHD’s holdings, it’s worth keeping an eye on the reconstitution process. Rebalancing is like rotating the horses – fresh legs keep the stable strong. In 2025, for example, several energy and industrial names were added, while a few laggards were shown the door.
Why does this matter for you? Because these changes can affect everything from yield to risk. Staying aware of reconstitution means you’re never caught off guard when the stable gets a shake-up.
SCHD’s holdings and sector mix aren’t just a list – they’re the engine that drives performance, yield, and stability. By understanding what’s inside, you’re not just along for the ride – you’re in the driver’s seat. A stable portfolio starts with the right lineup, and SCHD’s barn is stocked with some of the market’s most reliable workhorses.