SCHD Returns by Year: 15 Years of Bear Markets, Lagging Years and a Record Comeback

SCHD, the Schwab U.S. Dividend Equity ETF, launched in October 2011 and has grown into one of the most widely followed dividend funds in the world. Including reinvested dividends, it returned about 13.7% a year from launch to early November 2026, turning $10,000 into roughly $69,300.

Its history is one of the most interesting of any popular ETF, because it has moved so differently from the broad market at key moments. SCHD held up remarkably well in the 2022 bear market, lagged badly during the technology-led rally of 2023 to 2025, and then surged ahead of the S&P 500 in 2026 by one of the widest margins in its history.

This guide tells that story year by year. It explains how SCHD was built, what happened in every calendar year since launch, how far it fell in each major correction and how long it took to recover, how its dividend grew, and what its record means for anyone holding it today.

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SCHD at a Glance

All return figures in this guide are total returns, meaning they include dividends reinvested, unless stated otherwise. Past performance does not guarantee future results.

SCHD Returns by Year

Over its 14 full calendar years, SCHD finished higher in 11 and lower in three: 2015, 2018 and 2022. In none of those years did it lose more than about 6%.

The Fund and the Index Behind It

SCHD tracks the Dow Jones U.S. Dividend 100 Index, which is built to find financially strong companies that pay reliable dividends. To qualify, a company must have paid dividends for at least 10 consecutive years, and real estate investment trusts are excluded.

Eligible companies are scored on four measures: cash flow to total debt, return on equity, dividend yield and five-year dividend growth rate. The 100 companies with the strongest combined scores make it into the index, which is reconstituted once a year in March.

Each holding is capped at 4% and each sector at 25% at the annual rebalance. That keeps SCHD from being dominated by a few giant companies, and it explains why the fund often behaves very differently from the S&P 500, where a handful of technology companies carry enormous weight.

The Launch: October 2011

SCHD launched on October 20, 2011, as part of Charles Schwab’s push into low-cost ETFs. Schwab had entered the ETF market in 2009 and was building a lineup of funds designed to compete on cost with Vanguard and iShares.

The timing was notable. SCHD arrived just weeks after the S&P 500 had fallen about 19% in a correction driven by the European debt crisis and the first-ever downgrade of the US government’s credit rating. Investors were nervous and looking for steadier, income-producing investments.

From its first trading day to the end of 2011, SCHD gained about 5.3%. Its very first quarterly dividend, paid in December, was small because the fund had only been running for a few weeks.

2012: A Solid First Full Year

In 2012, SCHD returned about 11.4%, behind the S&P 500’s 16.0%. The broad market was led by a recovery in financial stocks and technology, areas where SCHD held relatively little.

The year also brought worries about the so-called fiscal cliff, a set of tax rises and spending cuts due at the end of the year. Dividend investors were particularly concerned, because the tax rate on dividends was scheduled to rise sharply if no deal was reached.

A last-minute agreement kept qualified dividends taxed at favorable rates for most investors. SCHD paid about $0.27 per share in dividends in 2012, on a split-adjusted basis, its first full year of payouts.

2013: SCHD’s Best Full Year

2013 was exceptional for almost every US stock fund, and SCHD returned about 32.9%, slightly ahead of the S&P 500. It remains SCHD’s best full calendar year.

The Federal Reserve’s bond-buying program kept interest rates low, which pushed investors towards dividend-paying stocks in search of income. Company profits rose and the economy strengthened.

By the end of 2013, an investor’s $10,000 from launch had grown to about $15,600. SCHD’s dividend rose about 11.6% for the year, an early sign of the growth that would become its defining feature.

2014: Steady Progress

SCHD returned about 11.7% in 2014, slightly behind the S&P 500’s 13.6%. The bull market continued as the Federal Reserve wound down its bond-buying program.

Oil prices began to collapse in the second half of the year, falling from over $100 a barrel. SCHD’s energy holdings felt the pressure, but its broad spread across consumer, industrial and healthcare companies limited the damage.

The fund’s dividend grew about 15.8% in 2014, one of its fastest increases. Income investors were beginning to notice SCHD’s combination of low cost and rising payouts.

2015: The First Losing Year and the Oil Crash

2015 brought SCHD’s first calendar-year loss, a small one of about 0.3%. From early March to late August 2015, it fell about 13.9% including dividends.

The oil crash deepened through the year, hitting energy companies, and in August China’s surprise currency devaluation triggered a global sell-off and a flash crash in US markets. SCHD’s industrial and energy holdings were among the hardest hit.

The fund did not regain its March 2015 peak until March 2016, about a year after the decline began. Yet its dividend kept rising, up about 9.5% for the year.

2016: Value Stocks Bounce Back

2016 was a strong year for SCHD, which returned about 16.5% against the S&P 500’s 12.2%. After oil prices bottomed in February, energy and industrial companies recovered sharply.

The surprise result of the US presidential election in November sparked a rally in value and financial stocks on expectations of tax cuts and lower regulation. Dividend-paying companies benefited.

By the end of 2016, an investor’s $10,000 from launch was worth about $20,200, doubling in just over five years. SCHD’s dividend rose about 9.7%.

2017: Calm and Strong

2017 was one of the calmest years in market history, with steady gains and few pullbacks. SCHD returned about 20.9%, close to the S&P 500’s 21.8%.

Strong global growth and the corporate tax cuts passed in December 2017 supported company profits. Lower corporate taxes, which took effect in 2018, gave many companies more room to raise their dividends.

SCHD’s dividend rose about 6.9% in 2017, one of its slower years. Even so, the fund’s income per share had risen by about two-thirds since 2012.

2018: Two Sell-Offs and a Loss

2018 tested SCHD twice. In early February, a sudden spike in market volatility triggered a sharp sell-off, and SCHD fell about 12.4% from late January to late March including dividends.

It recovered by September, only for a second, larger decline to follow. From late September to Christmas Eve, rising interest rates, trade tensions with China and fears of a slowing economy drove SCHD down about 17.1%.

SCHD finished 2018 down about 5.6%, its worst full calendar year to date. It regained its September peak by early April 2019, and its dividend still rose about 7.0% for the year.

2019: A Powerful Recovery

When the Federal Reserve paused its rate rises in early 2019 and then cut rates three times later in the year, markets rebounded strongly. SCHD returned about 27.3%, behind the S&P 500’s 31.4% as technology stocks led.

The year’s standout figure for SCHD investors was its dividend. Its annual payout jumped about 19.8%, the fastest growth in its history, as its companies passed on strong profits to shareholders.

By the end of 2019, the original $10,000 had grown to about $29,400. SCHD had more than doubled its dividend per share since its first full year.

2020: The COVID Crash

In early 2020, the spread of COVID-19 triggered the fastest market crash in history. From late January to March 23, SCHD fell about 33.4% including dividends, roughly in line with the broad market.

Many companies cut or suspended dividends as the economy shut down. SCHD’s focus on financially strong companies helped protect its income, and its annual dividend still rose about 17.7% in 2020, even as many dividend funds saw payouts fall.

SCHD regained its pre-crash peak by early September 2020, about five and a half months after the low. It finished the year up about 15.0%, behind the S&P 500’s 18.3% as technology companies benefited most from the shift to working from home.

2021: Back in Front

2021 was a strong year for almost everything, and SCHD returned about 29.9%, edging ahead of the S&P 500. Economies reopened, company profits surged and value stocks had a strong run.

Energy, financial and industrial companies, all areas where SCHD held more than the broad market, benefited from the reopening. The fund’s dividend rose about 10.9%.

By the end of 2021, an investor’s $10,000 from launch had grown to about $43,900. However, inflation was rising rapidly, setting up the most important year in SCHD’s history.

2022: SCHD’s Defining Year

2022 was the year SCHD made its reputation. As inflation hit 40-year highs, the Federal Reserve raised interest rates at the fastest pace in decades, and the S&P 500 fell into a full bear market.

The broad market fell about 18.2% for the year, driven by steep losses in technology and growth stocks. SCHD lost only about 3.3%, and its peak-to-trough decline from January to September was about 16.9%, much shallower than the market’s 25.4%.

Its energy holdings soared as oil prices spiked, and its consumer staples and healthcare companies held up well. SCHD’s dividend rose about 13.9%, and the fund attracted a wave of new investors who saw it as a safer way to own stocks.

2023: Left Behind by the AI Rally

2023 was the opposite of 2022. Excitement about artificial intelligence drove huge gains in a small group of large technology companies, and the S&P 500 returned about 26.3%.

SCHD, which held very few of those companies, returned only about 4.5%. It did not regain its January 2022 peak until late December 2023, almost two years after the decline began.

The gap frustrated many investors who had bought SCHD after its strong 2022. SCHD’s dividend growth also slowed to about 3.8%, its smallest annual increase on record.

2024: The Split and Another Gap

SCHD returned about 11.7% in 2024, a solid result that still trailed the S&P 500’s 25.0% by a wide margin. Large technology companies continued to dominate the market’s gains.

In October 2024, SCHD carried out a 3-for-1 share split, turning each share into three. The split did not change the value of anyone’s investment, but it lowered the share price and made it easier for smaller investors to buy whole shares.

The dividend rebounded, rising about 12.2% for the year. FRC’s guide to SCHD’s dividend history shows every payout, adjusted for the split.

2025: The Tariff Shock and a Third Year of Lagging

In early 2025, sweeping US tariff announcements triggered a sharp market sell-off. On a price basis, SCHD fell about 17.6% from late November 2024 to its April 2025 low.

At the annual reconstitution in March 2025, the index added ConocoPhillips at a 4% weighting and raised its exposure to energy. That shift would prove important a year later.

SCHD returned only about 4.3% in 2025, against the S&P 500’s 17.8%. It was the third year in a row of significant underperformance, and its price did not regain its previous high until January 2026. Its dividend still rose about 5.4%.

2026: The Biggest Lead in Its History

2026 transformed SCHD’s reputation once again. At the start of March, war between the United States and Iran sent oil prices above $100 a barrel, and SCHD’s energy holdings, including Chevron and ConocoPhillips, rose more than 30% in the first months of the year.

Its top holding at the time, defense company Lockheed Martin, also surged on expectations of higher defense spending. By mid-March, SCHD was up more than 12% for the year while the S&P 500 was down about 3%.

The lead widened as the year went on. Strong results from SCHD’s healthcare holdings, a rotation away from the most expensive technology companies and the fund’s relatively low valuation all helped. By early November, SCHD was up about 34.1% for 2026, against about 11.2% for the S&P 500, and it was trading at an all-time high.

Every Major Fall at a Glance

Figures are total returns including dividends, except the 2025 decline, which is measured on price alone. In every case so far, SCHD eventually recovered and went on to new highs.

How SCHD Compared With the Market Over Time

From SCHD’s launch in October 2011 to early November 2026, SCHD returned about 13.7% a year and the S&P 500, measured by VOO, about 14.9% a year. Over the same period, $10,000 in SCHD grew to about $69,300, against about $81,200 in VOO.

Over the 10 years to November 2026, SCHD returned about 13.9% a year against VOO’s 15.5%. Over five years, it returned about 10.5% a year against 11.8%, and over three years about 19.9% against 22.0%.

So SCHD has trailed the S&P 500 over most long periods, but by a narrower margin than its 2023 to 2025 results suggested, and with a smoother ride in bear markets. FRC’s comparison of SCHD vs VOO explains the trade-offs in detail, and FRC’s VOO performance history tells the S&P 500 side of the same story, year by year.

The Dividend Story

SCHD’s annual dividend has risen every year since its first full year. On a split-adjusted basis, it paid about $0.27 per share in 2012 and about $1.05 per share in 2025, close to four times as much.

That works out to dividend growth of roughly 11% a year on average. The increases ranged from about 3.8% in 2023 to about 19.8% in 2019, and the fund raised its payout even in 2020, when many companies cut theirs.

For long-term investors, that growth has been as important as the yield. An investor who bought in 2012 and held on was earning a much higher yield on their original cost by 2025, an example of compound interest at work.

What the Corrections Taught SCHD Investors

The first lesson is that a dividend fund is still a stock fund. SCHD fell about a third in the 2020 crash, almost as much as the broad market, and its dividend focus did not prevent sharp losses.

The second is that SCHD tends to hold up best in particular kinds of declines. In 2022, when rising interest rates hit technology and growth stocks hardest, its value and quality focus limited its losses far better than the S&P 500’s.

The third is that it can lag for long periods. Three years of underperformance from 2023 to 2025 tested many investors’ patience, and those who sold missed the 2026 rebound. FRC’s guide to growth stocks vs value stocks explains why different styles take turns leading.

How SCHD Compares With Other Dividend Funds

SCHD’s history differs from other popular dividend funds because of its quality screens and sector caps. VYM, Vanguard’s high-yield fund, holds around 600 companies and has behaved more like the broad market, while VIG focuses on dividend growth and holds far more technology.

In 2022, VYM lost only about 0.5% and VIG about 9.8%. In 2023, VIG returned about 14.5% and VYM about 6.6%, both ahead of SCHD. FRC’s comparisons of SCHD vs VYM and SCHD vs VIG explain these differences.

Covered call funds such as JEPI aim for higher income but give up more growth. FRC’s comparison of JEPI vs SCHD shows how SCHD’s 2026 surge compared with JEPI’s more modest gains.

Costs and Taxes Over SCHD’s History

SCHD has been one of the cheapest dividend funds available throughout its history and charges an expense ratio of 0.06% today, or $6 a year for every $10,000 invested. That low cost has helped it keep more of its returns for investors.

Like most index ETFs, SCHD has rarely distributed capital gains. Most of its dividends have been qualified dividends, taxed at the lower long-term capital gains rates, which makes it reasonably efficient in a taxable account.

FRC’s guides to qualified vs non-qualified dividends and how to minimize capital gains tax explain how dividend income is taxed and how investors keep tax bills low.

What SCHD’s History Does Not Tell You

SCHD’s 15-year record covers a specific period, including unusually low interest rates for much of its life, a historic run for technology stocks and an oil shock in 2026. Future returns may look very different.

Its holdings also change every year at the reconstitution. The SCHD of 2026, with heavy weightings in energy, healthcare and defense, is a different portfolio from the SCHD of 2015, so past results are only a partial guide.

FRC’s guide to SCHD for passive income explains how the fund works today and how investors use it in a portfolio.

Is Your Money Safe in SCHD?

SCHD is a regulated investment company overseen by the SEC, with its holdings kept by an independent custodian and separate from Schwab’s own assets. FRC’s guide to Is Charles Schwab Safe? explains how Schwab is structured and regulated.

When you hold SCHD at a SIPC member brokerage, your account is protected up to $500,000, including $250,000 in cash, if the brokerage fails and assets are missing. This protection does not cover market losses, such as SCHD’s fall of about a third in 2020.

SCHD’s history shows that its value and its relative performance can swing widely. Its safeguards protect the safekeeping of your investment, not its value or income.

Keep Learning

SCHD’s first 15 years show that a dividend fund can protect investors in some downturns, lag badly in some rallies and then surge when market leadership changes. The investors who benefited most were usually those who understood what the fund owned and stayed with it.

The FRC dictionary is more than a dictionary. It is a library of explainer videos, written explanations and on-page quizzes, so you can open any term, such as ex-dividend, and go deeper whenever something is unclear.

FRC’s programs and memberships are open to everyone. FRC’s Investing for Beginners guide and its guide to dollar-cost averaging vs lump sum are natural next steps.

Your Next Step

Since October 2011, SCHD has returned about 13.7% a year, turned $10,000 into about $69,300 and raised its annual dividend from about $0.27 to about $1.05 per share. It held up far better than the market in 2022, lagged from 2023 to 2025 and surged ahead in 2026.

Use that history to set realistic expectations: a dividend fund can still fall sharply, can lag for years and can lead when markets change, so choose it for what it owns and hold it for the long term.