The Schwab US Dividend Equity (SCHD) ETF has soared to a record high, outperforming the S&P 500 and Nasdaq 100 this year due to an ongoing investor rotation from growth to value stocks. While its recent rally has been strong, technical analysis suggests the ETF is now highly overbought, with the Relative Strength Index (RSI) at its highest level since May 2021, indicating a potential retreat in the coming weeks. The rotation is driven by a decline in top technology companies and increased investment in traditional sectors like defense and energy.
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SCHD ETF gets extremely overbought: Is it a good dividend stock?
The Schwab US Dividend Equity (SCHD) ETF has soared to a record high, outperforming the S&P 500 and Nasdaq 100 this year due to an ongoing investor rotation from growth to value stocks. While its recent rally has been strong, technical analysis suggests the ETF is now highly overbought, with the Relative Strength Index (RSI) at its highest level since May 2021, indicating a potential retreat in the coming weeks. The rotation is driven by a decline in top technology companies and increased investment in traditional sectors like defense and energy.