By Ian Salisbury
Investors who own the $88 billion Schwab US Dividend Equity exchange-traded fund probably don't expect a rocket ship to the moon. But this year, at least, that's what they're getting.
The index fund -- which pitches itself as "a straightforward, low-cost fund offering" suitable for the core holding in a diversified portfolio -- has delivered a total return of more than 16% in 2026. The S&P 500, beset with uncertainties about the Middle East and investors' newfound doubts about artificial intelligence, has gained just 0.7% over that time.
Just how good is the Schwab fund's performance? Good enough to rank it No. 4 among more than 3,600 large-cap funds and ETFs in Morningstar's database.
That's a marked improvement from the past three years, when the ETF delivered average annual total returns of just 12.6% -- a respectable gain but falling well short of the 21% annual return enjoyed by the S&P 500, which benefited from AI exposure.
The Schwab fund's current success owes to investors' renewed interest in "hard hat" sectors after years of obsession with Silicon Valley. The ETF's top four holdings -- Lockheed Martin, ConocoPhillips, Verizon Communications, and Chevron -- each delivered 20%-plus returns in 2025.
Of course, it remains to be seen if Schwab US Dividend Equity can keep up its red-hot performance. At this pace, it would finish the year with a total return of more than 140%.
Write to Ian Salisbury at ian.salisbury@barrons.com
Last Week
Markets
The U.S.-Israel war against Iran that began on Feb. 28 has investors worried about broader fallout. On Friday, oil prices hit a psychologically important $90 a barrel for the first time in two years as Kuwait cut output. U.S. job growth in February was much weaker than economists expected. Stocks tumbled on Friday on hints of stagflation. Earlier, the White House formally nominated Kevin Warsh to chair the Federal Reserve. A federal judge ordered the Trump administration to refund more than $130 billion it collected in tariffs invalidated last month by the Supreme Court. Trump fired Department of Homeland Security Secretary Kristi Noem following a tumultuous tenure. On the week, the Dow fell 3.0%, the S&P 500 lost 2.0%, and the Nasdaq Composite dropped 1.2%.
Companies
Apple unveiled its most affordable laptop, the MacBook Neo, which starts at $599. Broadcom beat first-quarter expectations, thanks to strong demand for its hardware that powers artificial intelligence. Berkshire Hathaway's new CEO, Greg Abel, said the conglomerate would buy back its own shares for the first time in nearly two years, a departure from predecessor Warren Buffett.
Deals
German publisher Axel Springer will buy Britain's Daily Telegraph newspaper for about $770 million. Digital advertising company Trade Desk is exploring a partnership with OpenAI to sell ads, according to The Information.
Next Week
Tuesday 3/10
Oracle headlines the earnings slate for the week to come. Analysts polled by FactSet expect the cloud provider to report adjusted earnings of $1.70 a share on sales of $16.92 billion for the quarter that ended in February. Cloud revenue is expected to rise to $8.77 billion, up from $7.98 billion in the November quarter. Wall Street will also pay close attention to the firm's costs related to data-center construction.
Wednesday 3/11
A double-dose of inflation data is due out this week. The Bureau of Labor Statistics will release the consumer price index for February on Wednesday. The consensus call is for a 2.5% year-over-year increase. The core CPI is expected to rise 1.4%. Both indexes are expected to rise 0.3% from January. Then, on Friday, the Bureau of Economic Analysis will put out the personal consumption expenditures price index for January. Economists forecast a 2.9% year-over-year increase, matching the December figure. The core PCE price index is expected to hold steady at 3%.
Friday 3/13
Investors will get a look at the Job Openings and Labor Turnover Survey for January, as well as the University of Michigan's Consumer Sentiment Index for March.
The Numbers
67%
Weekly gain in European natural-gas prices, to 53.39 euros, as the Iran war disrupted global LNG flows.
415 M
Barrels of oil in the U.S. Strategic Petroleum Reserve, vs. capacity of 714 million. Cost to refill: $20 billion-plus.
$170 M
Price paid by Meta Platforms' Mark Zuckerberg for an under-construction mansion in Miami, an area record.
28,000
Decline in U.S. healthcare jobs in February, amid strikes. Sector had been averaging gains of 36,000.
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(END) Dow Jones Newswires
March 06, 2026 20:51 ET (01:51 GMT)
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