Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/zaZWpr4hx0w.


SCHD ETF may not be the best dividend ETF but it sure is a top contender based on the low fees and comprehensive methodology that offers a reasonably high yield and reasonable dividend growth. What is the best dividend ETF? That's a topic for a coming video, but today we're focused on how the SCHD ETF is structured. Plenty of newbie retail investors are attracted to SCHD, based on all the searches we see for SCHD stock. It's based on the Dow Jones U.S. 100 Dividend Index which selects stocks that have paid a dividend for at least 10 years in a row (not increased, that's an important distinction that wasn't raised in the video) and are above a market cap of $500 million. Other factors are taken into account such as yield, 5-year growth, and trading volume. Once the 100 stocks are selected, they need to far fall from grace before they're kicked out of the index. Long story short, the Schwab US Dividend Equity ETF is a good way to get dividend income exposure at a very low cost.

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