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# How Does SCHD Fare Vs. The SPY And Other Yield Plays? (Archive)
- URL: https://www.huntingalphas.com/how-does-schd-fare-vs-the-spy-and-other-yield-plays-archive/
- Published: 2025-06-13T18:47:00.000Z
- Updated: 2026-02-28T17:42:02.000Z
- Description: SCHD’s sector tilts, valuation, and technicals leave it trailing SPY, despite attractive yield-focused alternatives.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, SCHD, SPY, ETF

*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

- SCHD has large net overweights to the Energy (especially upstream O&G), Industrials, and Consumer Staples sectors vs the S&P500.
- SCHD's industrials overweight may not be favorable given contracting US Manufacturing PMI data.
- I don't like how SCHD has zero exposure to some of the SPY's Top 10 Magnificent 7 stocks I am bullish on; NVIDIA, Microsoft, and Amazon.
- SCHD's valuations are low and undemanding, and hence are a source of upside risk. But to contest this point, technical analysis of SCHD vs. SPX500 says the underperformance downtrend remains.
- So overall, I prefer the S&P500 over SCHD. And for yield-focused investors, I think there are higher-yielding alternatives such as Enbridge, Petrobras, and British American Tobacco; all of these beat SCHD's 3.87% dividend yield.

Read the full article [here](https://seekingalpha.com/article/4794741-how-does-schd-fare-vs-the-spy-and-other-yield-plays?ref=huntingalphas.com).

#### Disclosures and Disclaimers

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