Schwab Grabs Lowest Cost Dividend ETF Crown

Charles Schwab Corporation (SCHW) introduced the Schwab U.S. Dividend Equity ETF (SCHD) on 10/20/11.  With an expense ratio of just 0.17%, the new ETF becomes the lowest cost U.S. listed dividend fund.  Schwab’s online customers can also buy and sell it commission-free. According to the underlying index fact sheet (pdf), the Dow Jones U.S. Dividend 100 Index came into existence only two months ago.  Investors should not confuse it with the “Select” dividend indexes from Dow Jones that enjoy longer histories.  Dow Jones backtested the index methodology from 12/3/1998 and supplied selected data from that test. One hundred stocks are selected for the index using four fundamental characteristics: cash flow/total debt ratio, return on equity, dividend yield, and five-year . . . → Read More: Schwab Grabs Lowest Cost Dividend ETF Crown