Getty Images SCHD: Last Year's Reconstitution Into Energy Looks Timely Now In March last year, when Schwab US Dividend Equity ( SCHD ) underwent its annual reconstitution, several energy companies ( XLE ) and consumer staples ( XLP ) were added (among others) into its portfolio as part of SCHD's reconstitution process , tracking the changes in the Dow Jones US Dividend 100 Index. At that time, I h...
Getty Images SCHD: Last Year's Reconstitution Into Energy Looks Timely Now In March last year, when Schwab US Dividend Equity ( SCHD ) underwent its annual reconstitution, several energy companies ( XLE ) and consumer staples ( XLP ) were added (among others) into its portfolio as part of SCHD's reconstitution process , tracking the changes in the Dow Jones US Dividend 100 Index. At that time, I had mixed feelings about this reallocation to energy . Back then, there were many ambiguities about how President Trump's energy policies were going to play out. And coming right off the tremors from Trump’s Liberation Day tariffs, sentiments in the energy sector were still very much in flux. Yet, I felt that those uncertainties had been baked into SCHD’s valuation. Because after all it was still reasonably valued, suggesting that the market had significantly discounted my concerns, which firmly kept me on the bullish side of the ledger. And since then, I have become more convinced that the rotation to energy was supported by strong fundamentals and appealing valuations for SCHD investors . And, since then, it seems like the rotation to more energy exposure has proved incredibly prescient in last year’s reconstitution, as energy is now the best-performing sector in the S&P 500 year-to-date, up more than 25% as I pen this write-up. As we anticipate the upcoming annual reconstitution for SCHD that is expected to take place on the third Friday of this month, I will be closely monitoring what new insights we could glean from the underlying changes. However, I don't expect even more energy exposure at this time. It is not because I think energy is going to a downtrend, because it clearly isn't the case right now. In fact, the energy sector has already surged to a new high, and that was even before the current Middle East conflict between the US and Israel against Iran. Top 10 Holdings of SCHD (Seeking Alpha) So energy investors have already reallocated, potentially diversifying f...
AlexLMX/iStock via Getty Images Key Takeaways Markets: US equity markets delivered gains in the fourth quarter, driven by strong earnings, Fed interest-rate cuts, and optimism around artificial intelligence. Contributors: Stock selection contributed in the financials, consumer discretionary, materials, and industrials sectors Detractors: Stock selection in information technology. Underweight expos...
AlexLMX/iStock via Getty Images Key Takeaways Markets: US equity markets delivered gains in the fourth quarter, driven by strong earnings, Fed interest-rate cuts, and optimism around artificial intelligence. Contributors: Stock selection contributed in the financials, consumer discretionary, materials, and industrials sectors Detractors: Stock selection in information technology. Underweight exposure to communication services and overweight exposure to consumer staples. Outlook: We expect investors will continue to focus on actions from a divided US Federal Reserve, and we are monitoring lofty equity valuations and potential headwinds in the consumer sector. Morningstar Rating™ Overall Rating as of December 31, 2025 ★★★★★ (5-Star) Class Y ★★★★★ (5-Star) Class A As of 12/31/2025 the fund's Class A and Class Y shares received a 5 star overall Morningstar rating™, measuring risk-adjusted returns against 1059, 995 and 832 Large Value funds over the 3-, 5- and 10-year periods, respectively. A fund's overall rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics. Performance Review For the quarter, the portfolio generated a positive return and outperformed its benchmark, the Russell 1000 Value Index. Stock selection was the main driver of relative outperformance, while sector allocation had a relatively neutral impact. Stock selection contributed most in the financials, consumer discretionary, materials, and industrials sectors. This was partially offset by relative weakness among stocks in the information technology sector. From a sector allocation perspective, relative performance was hurt by an underweight to communication services and an overweight to consumer staples. Top individual contributors to performance included overweight positions in General Motors (consumer discretionary), Regeneron Pharmaceuticals (health care), Citigroup (financials), and Southwest Airlines (industrials). ...
On February 17, 2026, Cooper Creek Partners Management reported selling out of Bath & Body Works (NYSE:BBWI) shares worth an estimated $128.98 million. According to a February 17, 2026, SEC filing , Cooper Creek Partners Management sold its entire holding of 5,006,959 shares in Bath & Body Works. The stake’s quarter-end value declined by $128.98 million. Bath & Body Works is a leading specialty re...
On February 17, 2026, Cooper Creek Partners Management reported selling out of Bath & Body Works (NYSE:BBWI) shares worth an estimated $128.98 million. According to a February 17, 2026, SEC filing , Cooper Creek Partners Management sold its entire holding of 5,006,959 shares in Bath & Body Works. The stake’s quarter-end value declined by $128.98 million. Bath & Body Works is a leading specialty retailer with a strong presence in the North American personal care and home fragrance market. The company leverages a multi-channel distribution strategy, including both physical retail and e-commerce, to maximize customer reach and brand engagement. Continue reading
In a combative press conference, the Pentagon chief dodged questions about the goals of the US military’s Iran operation Sign up for the Breaking News US email to get newsletter alerts in your inbox Leave it to Pete Hegseth, the ex-Fox News host now leading the Pentagon, to reframe the massive US-Israeli military operation in Iran as an act of resistance against political correctness: the first ba...
In a combative press conference, the Pentagon chief dodged questions about the goals of the US military’s Iran operation Sign up for the Breaking News US email to get newsletter alerts in your inbox Leave it to Pete Hegseth, the ex-Fox News host now leading the Pentagon, to reframe the massive US-Israeli military operation in Iran as an act of resistance against political correctness: the first based regime-change war of the Maga era. In a combative press conference at the Pentagon on Monday , Hegseth brought his anti-PC ethos to defend exactly what Donald Trump has said he did not want: to embroil the US in a major intervention in the Middle East with no clear timeline for exit. Continue reading...
US liquefied natural gas exporters stand to gain from supply disruptions amid the war with Iran, but the benefits may be tempered by the fact that American producers are already near maximum capacity for shipping cargoes of the fuel. Qatar’s decision to halt production at its giant Ras Laffan LNG plant following an attack Monday opens a huge opportunity for LNG producers. Yet those exporters have ...
US liquefied natural gas exporters stand to gain from supply disruptions amid the war with Iran, but the benefits may be tempered by the fact that American producers are already near maximum capacity for shipping cargoes of the fuel. Qatar’s decision to halt production at its giant Ras Laffan LNG plant following an attack Monday opens a huge opportunity for LNG producers. Yet those exporters have little spare capacity to fully take advantage of it. “Overall, US is exporting at capacity, so there’s not much wiggle room, maybe 5%, for additional volumes. This is a drop in the bucket compared to what Qatar produces at Ras Laffan,” said Ira Joseph, senior research associate at the Center on Global Energy Policy at Columbia University. Still, shares of Venture Global Inc . and top US exporter Cheniere Energy Inc. rose as much as 20% and 5.7% Monday, respectively. Shale driller EQT Corp . also hit an all-time high briefly after markets opened. “The events over the weekend have had a strong impact on global energy markets,” said Venture Global CEO Michael Sabel during a fourth-quarter 2025 earnings call on Monday. “With the largest available incremental LNG capacity in the world, the United States will play a critical role during this historic disruption in the market.” Venture Global and Cheniere are ramping up their existing facilities. Cheniere’s Corpus Christi LNG plant in Texas is incrementally adding new capacity. Venture Global is bringing online its second Louisiana plant, Plaquemines, and building a third, CP2, in the state. Read More: Gas Prices Surge as Qatar Shuts World’s Largest LNG Export Plant The uptick for US exporters may be shortlived as companies are already shipping almost all their cargoes and would need significant additional supplies to fill the gap opened up by Qatar. The price spike also would need to be sustained for companies with American LNG to take advantage of the yawning arbitrage, given that it takes at least two weeks for vessels to reach...
PM Images/DigitalVision via Getty Images As we move into the third month of 2026 amidst tense geopolitical conditions, b elow is a list of the best performing consumer discretionary stocks with market capitalizations exceeding $11 billion throughout the month of February. The list includes stocks with Quant Ratings ranging from Strong Buy to Hold, ranked by their one-month price performance. The l...
PM Images/DigitalVision via Getty Images As we move into the third month of 2026 amidst tense geopolitical conditions, b elow is a list of the best performing consumer discretionary stocks with market capitalizations exceeding $11 billion throughout the month of February. The list includes stocks with Quant Ratings ranging from Strong Buy to Hold, ranked by their one-month price performance. The list is topped by Tapestry ( TPR ), with a monthly gain of 21.90%. Five Below ( FIVE ) follows closely as the second-highest performer with a 19.38% gain. BorgWarner ( BWA ) and Hasbro ( HAS ) stand out as Strong Buy candidates based on their Quant scores of 4.50 and 4.51 respectively. Norwegian Cruise Line Holdings ( NCLH ) rounds out the top performers with a Buy rating and an 18.84% monthly gain. Here is the list: Tapestry ( TPR ), 1 month performance percentage: 21.90% Five Below ( FIVE ), 1 month performance percentage: 19.38% BorgWarner ( BWA ), 1 month performance percentage: 18.87% Norwegian Cruise Line Holdings ( NCLH ), 1 month performance percentage: 18.84% Deckers Outdoor ( DECK ), 1 month performance percentage: 17.08% Hasbro ( HAS ), 1 month performance percentage: 11.04% PulteGroup ( PHM ), 1 month performance percentage: 10.75% Ross Stores ( ROST ), 1 month performance percentage: 10.56% Carnival Corporation & plc ( CUK ), 1 month performance percentage: 10.46% Toll Brothers ( TOL ), 1 month performance percentage: 9.90% Consumer Discretionary ETFs: ( XLY ), ( VCR ), ( FXD ), ( FDIS ), ( RSPD ), and ( RXI ) More on consumer discretionary stocks VCR: Vanguard's $6.1 Billion Consumer Discretionary ETF Has Some Major Fundamental Headwinds Consumer Discretionary In The Great Rotation FDIS: Consumer Discretionary Dashboard For February Lowest Quant-rated stocks from JPM's 'conflict laggards' list amid the U.S.-Israel-Iran War Treasury signals tariff strategy to continue as courts weigh potential refunds