SCHD ETF 2026 Reconstitution
The Dow Jones U.S. Dividend 100 Index completed its annual reconstitution in March 2026 — see all additions, removals, and sector impacts for SCHD.
SCHD 2026 Reconstitution Overview
The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index, which undergoes an annual reconstitution to ensure only the highest-quality dividend stocks qualify. The 2026 reconstitution occurred after market close on March 20, 2026, with changes effective March 23, 2026.
This resulted in 22 removals (including energy and materials names like VLO, HAL, PKG, CF) and 25 additions (strong healthcare/tech/financials like UNH, ABT, PG, QCOM, ACN). Energy exposure dropped significantly, offset by gains in healthcare and technology for better balance.
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SCHD 2026 Reconstitution Changes
Full lists of added and removed stocks from the Dow Jones U.S. Dividend 100 Index (effective March 23, 2026).
- UnitedHealth Group Inc (UNH)
- Abbott Laboratories (ABT)
- Procter & Gamble Co (PG)
- QUALCOMM Inc (QCOM)
- Accenture plc (ACN)
- Comcast Corp (CMCSA)
- Automatic Data Processing Inc (ADP)
- Blackstone Inc (BX)
- Devon Energy Corp (DVN)
- Ares Management Corp (ARES)
- Broadridge Financial Solutions (BR)
- Principal Financial Group Inc (PFG)
- Booz Allen Hamilton (BAH)
- Old Republic International Corp (ORI)
- Erie Indemnity Co (ERIE)
- Macy's Inc (M)
- Korn Ferry (KFY)
- The Marzetti Company (MZTI)
- Penske Automotive Group Inc (PAG)
- National Bank Holdings Corp (NBHC)
- Federal Agricultural Mortgage Corp (AGM)
- Hanmi Financial Corp (HAFC)
- Independent Bank Corp (IBCP)
- Orrstown Financial Services Inc (ORRF)
- Capital City Bank Group Inc (CCBG)
- Cisco Systems Inc (CSCO)
- AbbVie Inc (ABBV)
- Valero Energy Corp (VLO)
- Halliburton Co (HAL)
- Packaging Corp of America (PKG)
- CF Industries Holdings Inc (CF)
- Amcor plc (AMCR)
- LyondellBasell Industries N.V. (LYB)
- Ovintiv Inc (OVV)
- Unum Group (UNM)
- Janus Henderson Group plc (JHG)
- Radian Group Inc (RDN)
- International Bancshares Corp (IBOC)
- Signet Jewelers Ltd (SIG)
- Cathay General Bancorp (CATY)
- Whirlpool Corp (WHR)
- Huntsman Corp (HUN)
- FMC Corp (FMC)
- Northwest Bancshares Inc (NWBI)
- First Commonwealth Financial Corp (FCF)
- Carters Inc (CRI)
- Kforce Inc (KFRC)
| Sector | Change | Notes |
|---|---|---|
| Energy | ↓ ~8% | Major reductions from removals like VLO, HAL, CF, OVV |
| Healthcare | ↑ ~4% | Boosted by additions like UNH, ABT |
| Technology | ↑ ~3% | Increased via QCOM, ACN, ADP; CSCO removed |
| Financials | Modest gain | Additions like BX, ADP, PFG, BR |
| Materials / Chemicals | ↓ ~3% | Removed LYB, AMCR, HUN, FMC |
| Consumer Staples | ↑ ~2% | Added PG, CMCSA |
Approximate sector weight changes based on index methodology and reported impacts. Verify with latest Schwab holdings.
What Is SCHD Reconstitution?
The annual reconstitution refreshes the Dow Jones U.S. Dividend 100 Index to include only the top 100 U.S. stocks meeting strict criteria: 10+ years of consecutive dividends, strong fundamentals (ROE, cash flow), and competitive yields. Changes help maintain quality focus and sector balance in SCHD.
This rules-based process is not active management — it's mechanical and transparent. The 2026 update reduced commodity exposure while adding resilient dividend payers in healthcare and tech. Compare SCHD's post-reconstitution profile on our Top 100 Dividend ETFs list.
Why Were CSCO and ABBV Removed?
Cisco (CSCO) and AbbVie (ABBV) — two of SCHD's largest prior holdings — were removed as part of the 2026 reconstitution. While both remain strong dividend payers, the index's annual screening process recalibrates based on relative ranking across all eligible candidates on metrics such as free cash flow to total debt, return on equity, dividend yield, and 5-year dividend growth rate. Stocks are removed when other candidates score more favorably across the composite, not necessarily because of business deterioration.
What Does the 2026 Reconstitution Mean for SCHD Investors?
No immediate action is required. SCHD automatically adjusts its portfolio to reflect the new index composition. Investors holding SCHD in taxable accounts should note that reconstitution may trigger minor capital gains distributions, though these are typically modest in passively-managed index funds. Those who held CSCO or ABBV as SCHD proxies in individual portfolios should review whether to replace them with new additions like UNH or PG.
SCHD 2026 Reconstitution FAQ
Common questions about the March 2026 SCHD changes.
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What happened in the SCHD 2026 reconstitution?The index reconstituted with 25 additions and 22 removals, effective March 23, 2026. Energy exposure decreased notably, with gains in healthcare and technology.
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Which stocks were added to SCHD in 2026?Key additions: UNH, ABT, PG, QCOM, ACN, CMCSA, ADP, BX, DVN, and 16 others (see full list above).
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Which stocks were removed from SCHD in 2026?Removals include CSCO, ABBV, VLO, HAL, PKG, CF, AMCR, LYB, OVV, UNM, JHG, and 11 others (full list above).
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Why were CSCO and ABBV removed from SCHD?Both were removed because newer candidates scored higher on SCHD's composite metrics — including free cash flow to total debt, return on equity, dividend yield, and 5-year dividend growth rate. Removal does not necessarily indicate deteriorating business quality.
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When did the SCHD reconstitution changes take effect?Changes were implemented after close on March 20, 2026, and effective for trading starting March 23, 2026.
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Do I need to do anything after the SCHD reconstitution?No immediate action required — SCHD automatically adjusts. Review your allocation if sector shifts (e.g., lower energy) impact your strategy. See more ETFs at TopDividendETFs.com.
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How often does SCHD reconstitute?The Dow Jones U.S. Dividend 100 Index reconstitutes annually, typically in March. Between reconstitutions, the index may also rebalance quarterly for weight adjustments without adding or removing holdings.
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View the Full Top 100 List →Important Disclaimer
Reconstitution details are estimations and are based on published index changes and community/Schwab sources as of March 2026 but can be inaccurate! Please know Holdings and weights can shift; always verify via official Schwab asset management resources or your brokerage. This is informational only — not investment advice. TopDividendETFs.com is independent and not affiliated with Charles Schwab.