The 10 largest holdings of the Schwab U.S. Dividend Equity ETF now represent between 41% [1] and 42% [2] of the fund's total assets.
This concentration is significant because the fund is marketed to provide diversification to investors seeking quality dividend income. When a small number of companies dominate the portfolio, the fund's performance becomes more dependent on a handful of stocks rather than a broad market segment.
According to a Schwab fact sheet released in June 2026, the fund's dividend-quality screening criteria favor a small group of high-quality, high-dividend companies [3]. This specific filtering process has led to the current concentration in the top 10 holdings [3].
The ETF, which trades on the NYSE ARCA exchange, maintains a total of 105 holdings [4]. Despite the concentration at the top, the fund maintains a low expense ratio of 0.06% [5].
Reports on the fund's total assets vary. One source lists the assets at $85 billion [1], while another reports the figure as $71 billion [2]. The discrepancy highlights the volatility or reporting differences in the fund's massive scale.
Investors typically use the SCHD ETF to gain exposure to U.S. dividend-paying stocks without having to select individual equities. However, the current weighting means that nearly half of an investor's capital in the fund is tied to just 10 companies [1].
“The 10 largest holdings of the Schwab U.S. Dividend Equity ETF now represent between 41% and 42% of the fund's total assets.”
The shift toward higher concentration suggests that the 'quality' filters used by Charles Schwab are narrowing the field of eligible stocks. For investors, this means the ETF behaves less like a broad index and more like a concentrated portfolio, increasing the potential impact of a single company's failure on the overall fund value.
