History Says This ETF Is a Fantastic Buy-and-Hold Investment -- and It Could Turn $100 per Month Into $359,492

High-yield dividend stocks are typically considered safer than tech stocks, but they often underperform in terms of growth. Mature, established companies that pay strong dividends usually have solid business models and balance sheets, but they are unlikely to experience rapid share price increases like some artificial intelligence (AI) stocks have recently.

However, for investors concerned about AI stocks and seeking diversification, high-yield dividend exchange-traded funds (ETFs) can be an attractive option. One such ETF is the Schwab U.S. Dividend Equity ETF (SCHD), which has a low expense ratio of 0.06%.

SCHD invests in 102 large-cap companies known for their quality and sustainability in dividend payments. Tech stocks make up only about 12.2% of the SCHD portfolio, with the top holdings including energy stocks like ConocoPhillips and Chevron, healthcare stocks like UnitedHealthcare and Merck, and consumer staples like Procter & Gamble and Coca-Cola. While there is no guarantee that any ETF is immune to a bear market, SCHD generally holds a different mix of companies compared to AI-focused tech ETFs.

Over the past five years, SCHD has delivered annualized returns of approximately 9.5%, slightly less than the S&P 500. However, over the longer term, SCHD has outperformed, with a 15-year track record of 13.11% annualized returns since its establishment in October 2011. Assuming a monthly investment of $100 in SCHD, and assuming the fund continues to deliver the same 13.11% annualized return, your investment would grow to $7,793 after five years, $22,222 after 10 years, $98,394 after 20 years, and an impressive $359,492 after 30 years.