Hello, SCHD is an exchange-traded fund (ETF) that tracks the performance of the Dow Jones U.S. Small-Cap Value Total Stock Market Index. This index is composed of small-cap stocks that are considered to be undervalued by the market. The ETF seeks to provide investors with exposure to these stocks in a cost-effective and diversified manner. The strategy used by SCHD is to invest in a portfolio of small-cap stocks that are considered to be undervalued by the market. The ETF seeks to provide investors with exposure to these stocks in a cost-effective and diversified manner. The fund invests in a variety of sectors, including consumer discretionary, financials, industrials, information technology, materials, and healthcare. The ETF uses a passive investment strategy which means it does not actively manage its portfolio or attempt to outperform the index it tracks. Instead, it simply seeks to replicate the performance of the index as closely as possible by investing in all or a representative sample of the securities included in the index. This approach helps reduce costs and allows investors to benefit from any potential outperformance of the underlying index without having to pay active management fees. In addition, SCHD also employs an active risk management strategy which involves monitoring and managing risk factors such as sector concentration and stock selection risk. This helps ensure that investors are not exposed to excessive levels of risk while still providing them with exposure to potentially undervalued small-cap stocks. Overall, SCHD's strategy is designed to provide investors with exposure to potentially undervalued small-cap stocks in a cost-effective and diversified manner while also employing an active risk management strategy for added protection against potential losses due to market volatility or other factors.