What is SCHD's concentration in its top 10 holdings?

The top 10 positions make up 41% of the fund's $94 billion in assets.

What are the risks of concentration in SCHD?

Concentration risk means the fund's performance depends heavily on a few stocks, increasing volatility and reducing diversification.

Should I be worried if I invest in SCHD?

It depends on your risk tolerance. Investors may want to diversify across other funds to reduce exposure.

SCHD Now Puts 41% of Your Money in Just 10 Stocks

The Schwab U.S. Dividend Equity ETF (SCHD), managing $94 billion, now allocates 41% of its assets to just 10 stocks. For a retiree with $400,000 in the fund, that means $164,000 is tied to ten companies.

June 6, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

fund size

$94 billion

concentration percentage

41%

top positions count

retiree portfolio

$400,000

exposure to top10

$164,000

Rising Concentration in SCHD Raises Concerns

The Schwab U.S. Dividend Equity ETF (SCHD), with $94 billion in assets under management, now concentrates 41% of its portfolio in just 10 stocks. For a 63-year-old retiree holding $400,000 in the fund, this means $164,000 of their nest egg is exposed to only ten names.

Details

SCHD tracks the Dow Jones U.S. Dividend 100 Index, which includes 100 high-quality dividend-paying stocks. However, over time, the top 10 positions have grown to represent a significant portion of the fund. The report did not disclose the specific stocks, but SCHD is known to hold companies like Cisco Systems (CSCO), AbbVie (ABBV), Merck (MRK), and Bristol-Myers Squibb (BMY).

Context

Portfolio concentration is not uncommon in index funds, but it increases volatility risk. If one of the top holdings faces a downturn, the fund's performance could be significantly impacted. However, SCHD is known for selecting stocks with strong fundamentals and stable dividends.

What This Means for Investors

Investors in SCHD should monitor the portfolio allocation and ensure it aligns with their risk tolerance. Some may consider diversifying across other funds to reduce exposure to any single stock or sector.

Frequently Asked Questions

SCHD is a Schwab ETF that tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-quality U.S. dividend-paying stocks.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.