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# SCHD: Annual Portfolio Refresh Won't Help (Archive)
- URL: https://www.huntingalphas.com/schd-schd-annual-portfolio-refresh-wont-help-archive/
- Published: 2023-03-21T06:25:00.000Z
- Updated: 2026-02-26T15:42:13.000Z
- Description: SCHD’s looming energy overweight risks turning dividend strength into cyclical performance drag.
- 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

- I replicate the new index based on the reconstruction rules to anticipate what the new SCHD portfolio may look like.
- I am not concerned about Financials and Regional Banks' exposure as I expect those weights to be small.
- But I anticipate a sharp rise in Energy exposure as higher O&G prices in 2022 and strong capital return policies have elevated ROEs and dividend yields.
- I think this will drag down SCHD's performance further vs. the S&P 500 since I expect further weakness in O&G prices due to increased chances of a recession.

Read the full article [here](https://seekingalpha.com/article/4588885-schd-etf-annual-portfolio-refresh-wont-help?ref=huntingalphas.com).

#### Disclosures and Disclaimers

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