Introduction

For investors seeking high-yield ETFs, the Schwab U.S. Dividend Equity ETF (SCHD, $79.24) is a top choice.

This ETF is one of the largest on Wall Street, making it cost-effective with a low fee structure that benefits most investors.

The basic strategy of SCHD is to track the Dow Jones U.S. Dividend 100 Index, holding 100 of the biggest and most liquid stocks that pay above-average dividends.

Companies included in this fund must have a history of paying dividends for at least the past 10 years.

This allows investors to earn double the current yield of the S&P 500 while investing in well-known, low-risk companies.

Some of the top holdings in this dividend ETF are United Parcel Service (UPS), Home Depot (HD), and Chevron (CVX).

These are considered stable stocks that tend to perform well even during market volatility.

Conclusion

With its focus on high dividends, this ETF is expected to be a good investment option in the coming year.