The Schwab US Dividend Equity ETF (SCHD) stock price has soared to a record high as the fear and greed index has jumped. The fund has risen in the past five months straight as demand for US equities rose.
SCHD inflows are soaringNotably, the fund’s performance has happened at a time when inflows are rising. Data compiled by ETF.com shows that the fund has had strong inflows in the past five weeks straight. It has added over $356 million this year, giving it over $53 billion in total assets.
The SCHD’s performance is happening at a time when American stocks are in a strong bullish trend. On Friday, the key indices like the Nasdaq 100 and S&P 500 closed at a record high.
Interestingly, the fund has reached its all-time high even though it does not have a major exposure to technology companies. Unlike the two Nasdaq 100 and S&P 500 indices, the SCHD does not have the so-called Magnificent 7.
Instead, the fund is made up of old-school companies that don’t have spectacular earnings and revenue growth. Its biggest tech companies are also old-school in nature. They include the likes of Broadcom, Texas Instrument, and Cisco Systems.
The other big SCHD constituents are the likes of Abbvie, Merck, Verizon, Chevron, Coca-Cola, and Amgen.
Its performance is also surprising because, as I wrote in my last article, it has a big exposure to regional banks, which are in a lot of trouble. Some of the top regional banks in the ETF are the likes of Fifth Third Bancorp, Huntington Bancshares, Regions Financial, and Comerica.
Most regional bank stocks have tumbled hard in the past few months because of the rising concerns about their exposure to commercial real estate.
SCHD ETF stock analysis
Turning to the weekly chart, we see that the SCHD ETF has been in a strong uptrend in the past few weeks. The recent wave of upside is important because it has moved above the important resistance at $76.77, its previous all-time high. It was its highest point in January 2022.
The Schwab US Dividend ETF has remained above the 50-week and 100-week Exponential Moving Averages (EMA). This is a sign that bulls are in control. It has also invalidated the triple-top pattern whose neckline was at $63.01.
Therefore, the outlook for the SCHD ETF is bullish, with the next point to watch being at $80. A break above this point will open the possibility of it soaring to $100. The stop-loss of this trade will be at $76.77.
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