The market has kept grinding higher with big tech leading the way, and most portfolios have ended up leaning more heavily toward growth stocks as a result. While growth has enjoyed a particularly long stretch of outperformance, its streak won’t last forever. In fact, during the 1980s and after the internet bubble burst, there were long periods when value stocks outperformed their growth counterparts.
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The markets move in cycles, and value stocks will eventually have their turn in the spotlight. This is why it could be time to give a fund like the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) a second look. The exchange-traded fund (ETF) is built around stocks with consistent free cash flow and rising dividends, rather than companies chasing revenue growth. So while it isn’t time to abandon growth stocks, mixing in a little value with the help of SCHD could be a good idea.