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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Reuben Gregg Brewer, The Motley FoolSat, November 1, 2025 at 3:15 PM GMT+1 5 min readWealth is built over the long term, not the short term. Patience is required.The market is near all-time highs, but this dividend-focused ETF has been lagging.If you haven't started investing, now is the right time -- and this dividend ETF is a smart way.10 stocks we like better than Schwab U.S. Dividend Equity ETF ›The S&P 500 is hovering near all-time highs, which may make some worry that they've missed their chance to invest. That's the wrong way to think about investing. You don't build wealth in a day, a month, or even a year. It takes decades, and the best time to start your wealth journey is now.Schwab US Dividend Equity ETF (NYSEMKT: SCHD) could be a smart option. Here's why.This is an exchange-traded fund (ETF), buying whatever's in the Dow Jones U.S. Dividend 100 Index. If you want to make a smart decision about Schwab US Dividend Equity ETF, you need to understand the index it tracks.Image source: Getty Images.The Dow Jones U.S. Dividend 100 index begins its selection process by limiting its options, only looking at companies that have 10 or more annual dividend increases behind them. Real estate investment trusts are excluded from consideration because of their corporate structure. This single step drastically reduces the number of stocks being considered and focuses the index on well-run companies. Indeed, it takes a fair bit of success to reach a decade of annual dividend hikes.The index creates a composite score for each company listed. The score includes cash flow to total debt, return on equity, dividend yield, and a company's five-year dividend growth rate. This is an interesting collection of factors, since they basically mean the index is trying to find well-run companies that are financially strong and that have large and growing dividends. That's basically what most dividend investors are looking to do, too.The 100 highest-ranked companies are included in the index using a market cap weighting. This ensures that the largest companies have the biggest impact on performance. The index is updated annually, so the portfolio will always contain the best stocks, according to the index's methodology. You get all this for a very low expense ratio of 0.06%.SCHD data by YChartsThe first reason the ETF is a smart choice is fairly simple. As noted, it basically does what a dividend investor would do to build a portfolio stock by stock. In other words, this isn't some esoteric investment approach that you can't wrap your head around. It just makes your life easier because you get a diversified portfolio of dividend stocks with one quick purchase.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,898.25 +24.25 (+0.35%)Dow Futures47,865.00 +143.00 (+0.30%)Nasdaq Futures26,114.75 +110.75 (+0.43%)Russell 2000 Futures2,500.00 +10.10 (+0.41%)VIX17.44 +0.53 (+3.13%)Gold3,977.80 -18.70 (-0.47%)PortfolioSign in to access your portfolioSign inTop gainersBHF Brighthouse Financial, Inc. 57.07 +11.38 (+24.91%)ILMN Illumina, Inc. 123.54 +24.53 (+24.78%)TWLO Twilio Inc. 134.88 +22.02 (+19.51%)TVTX Travere Therapeutics, Inc. 35.16 +5.51 (+18.58%)BFAM Bright Horizons Family Solutions Inc. 109.23 +16.95 (+18.37%)Top losersATGE Adtalem Global Education Inc. 98.02 -43.75 (-30.86%)SPSC SPS Commerce, Inc. 82.24 -21.65 (-20.84%)TBBK The Bancorp, Inc. 65.37 -11.83 (-15.32%)DXCM DexCom, Inc. 58.22 -9.98 (-14.63%)ABR Arbor Realty Trust, Inc. 10.09 -1.46 (-12.64%)Most activeNVDA NVIDIA Corporation 202.49 -0.32 (-0.16%)AMZN Amazon.com, Inc. 244.22 +21.36 (+9.58%)PFE Pfizer Inc. 24.65 +0.36 (+1.48%)OPEN Opendoor Technologies Inc. 7.77 +0.43 (+5.86%)ONDS Ondas Holdings Inc. 6.44 +0.15 (+2.38%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 109,656.61 -281.96 (-0.26%)ETH-USD Ethereum USD 3,862.49 -3.18 (-0.08%)XRP-USD XRP USD 2.50 -0.00 (-0.01%)VOLT Tema Electrification ETF 30.49 -0.08 (-0.26%)SOL-USD Solana USD 186.67 +1.57 (+0.85%)Top economic events