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# Changing My Stance And Loading Up On SCHD (Archive)
- URL: https://www.huntingalphas.com/changing-my-stance-and-loading-up-on-schd-archive/
- Published: 2024-01-09T01:57:00.000Z
- Updated: 2026-02-27T06:15:17.000Z
- Description: Changing my stance as SCHD’s valuation, exposures and risk-reward skew turn compelling.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, ETF, SCHD

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Early last year, I thought SCHD would underperform the S&P500\. This has played out as SCHD made negative alpha vs S&P500 of 8.53%. But now I am bullish SCHD.
- I like SCHD's relative underweights vs SPY in: a) Technology due to its premium valuations b) Payment Processing due to decelerating growth c) Retail as that is yet to rebound.
- I like SCHD's relative overweights vs SPY in: a) Asset Management & Custody Banks as I anticipate higher activity b) Soft Drinks & Beverages due to strong growth prospects.
- Valuations wise, SCHD is trading at a 28% discount to the S&P500, providing a good margin of safety.
- Risks wise, SCHD has no exposure to Microsoft, Apple or NVIDIA and positive earnings surprises in these companies can hinder SCHD's alpha vs S&P500.

Read the full article [here](https://seekingalpha.com/article/4661801-changing-my-stance-and-loading-up-on-schd?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*