Want Decades of Passive Income? Buy This Index Fund and Hold It Forever.

Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has a unique approach to stock selection, and in some ways, it feels like it is more than just a simple index fund. That, however, is not the case, since it basically tracks the Dow Jones U.S. Dividend 100 Index. Understand that index, and you'll understand why the Schwab U.S. Dividend Equity ETF is such an attractive source of passive income. Here's what you need to know.As an index-tracking exchange traded fund (ETF), the single most important thing for investors to know about the Schwab U.S. Dividend Equity ETF is really to understand what the Dow Jones Dividend 100 Index does. The goal of the index is simple: to provide investors a reliable income stream backed by financially strong companies, but the methodology is fairly complex.Image source: Getty Images.Continue reading

Feb 26, 2025 - 11:51
 0
Want Decades of Passive Income? Buy This Index Fund and Hold It Forever.

Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) has a unique approach to stock selection, and in some ways, it feels like it is more than just a simple index fund. That, however, is not the case, since it basically tracks the Dow Jones U.S. Dividend 100 Index. Understand that index, and you'll understand why the Schwab U.S. Dividend Equity ETF is such an attractive source of passive income. Here's what you need to know.

As an index-tracking exchange traded fund (ETF), the single most important thing for investors to know about the Schwab U.S. Dividend Equity ETF is really to understand what the Dow Jones Dividend 100 Index does. The goal of the index is simple: to provide investors a reliable income stream backed by financially strong companies, but the methodology is fairly complex.

Image source: Getty Images.

Continue reading