SCHD
Schwab US Dividend Equity ETF
stockNYSEETF

SCHD is up while VTI is down

It doesn't exactly matter whether you sell shares or receive a dividend, though. Also if you wanted dividends in retirement it's not like you must hold SCHD during the accumulation phase; you can always just buy SCHD in bulk closer to retirement.

what's the one thing I've been trying to communicate to people and not just about VOO but also frankly SCHD and any ETF that obey a set of preordained filtering rules that relocate

There’s nothing keeping you from moving your wealth - once you actually have it - into SCHD. You don’t get a leg up by diluting your growth today.

Because I believe VOO is too concentrated into 7 companies right now, I supplement it with SCHD and VYM. Moreso in a tax shielded account like a Roth IRA

I don't think this is necessarily true either. SCHD may not have the growth, but it would have a pretty steady dividend in retirement and you wouldn't have to sell any funds. Starting to acquire is slowly as you approach retire could be a good strategy.

I don’t think that’s necessarily true. If you look at the [backtests](https://testfol.io/?s=9yFuLSgHuVw) going back to 1999, SCHD outperforms SPY, 11% vs 8% respectively. And yes, SCHD didn’t exist in 1999, the returns are simulated. But the data it’s based on is robust for that time period, it isn’t a black box. The index it’s based on (Dow Jones US Dividend 100) was backtested by S&P Global themselves. One could argue that it suffers from hindsight bias (the index was created in 2011 based on what had worked previously), but the data is real. I think one of the reasons for the outperformance may be its factor exposure. If you look at [SCHD](https://bestfolio.app/tools/factor-lens?q=SCHD%20100&region=US) vs [SPY](https://bestfolio.app/tools/factor-lens?q=SPY%20100&region=US), SCHD loads much more heavily on nearly every one of the Fama-French 4+ factors. Of course nobody knows what the future will hold, but I wouldn’t bet against SCHD.

SCHD caps its holdings to around 4% so the top 10 can be misleading because you will never see more than 40% of the portfolio. You should be looking at the top 20 holdings or more if possible. Qualcomm and Texas instruments are tech for example and SCHD is around 10-20% tech. It's not true diversification from the AI bubble but the majority of its holdings can be useful for a specific market rotation into consumer def, healthcare, and energy. Cautionary note: SCHD is not invulnerable and can still crash. With 100 holdings it is a relatively concentrated etf compared to many broad market etfs. SCHD needs a purpose in a portfolio and unless you very much want a higher concentration in a handful of energy, consumer def, and healthcare holdings, it would be good to have a more thoughtful strategy that involves your age and retirement plan. Right now buying into SCHD near its all time high is like performance chasing while people are temporarily scared of AI stocks.

I know allot of people on here shit on schd. But I feel like it could work for the better if you're younger. Because you have a longer runway starting at 18. Especially If you're splitting it between the two. If you put $750 away a month in each fund by the time you're 53 SCHD will be paying you $105k per year by 63 it'll be over 300k per year. Thats without you selling any shares. Plus you still get growth from VOO. I have both. I like having both. But it all depends on your situation, what account you are holding it in. What state you live in. My state doesn't tax dividends. So I only pay federal in a taxable brokerage. And it's taxed at up to 98k and 15% over 98k per year which is lower than my earned income taxes.

SCHD is a decent proxy for quality, and is less volatile and more defensive than VOO biut due to dividends on taxes and dividend irrelavance it would only really make sense in a tax advantaged account with dividends reinvested. Could also do a combo of XLP, XLV, XLU and VOO 25% each as you still get some growth potential as you’re in 100% equities but much less volatility from being 75% defensive. Could also do AVGV instead of VOO for global value tilt which MAY keep pace w VOO due to higher exposure in small cap value and emerging markets. Could also just do VOO with a 10% position ea in gold / long bonds (via GLD / TLT) which has basically the same returns as VOO with only 2/3 of the drawdown and volatility. You could also probably just stay 100% in VOO and just check your port less!

I buy a little SCHD because it makes me less sad when everything else is red. It’s up 23% on the year and 15% on 3 years, but when the retired boomers who hold it stop being the largest demographic of individual investors, it probably won’t keep growing at current rate.

If the market corrects you think the top 10 of SCHD would be safe?

SCHD it is only worth if you want to live off dividends in retirement AND want to pass this ability of living off dividends to your children. And this is still questionable. SCHD and SP500 funds have pretty much the same risks, but SCHD trails SP500 ETFs

There's two reasons to hold SCHD: You are retired (or semi retired) and the tax advantaged dividends (in a taxable account) are paying part of your living expenses. You want a lower volatility counterbalance to high flying tech stocks. Even so, a better choice might be a value-oriented fund; SCHDs value tilt is secondary to its selection for dividend growth. It's a poor choice for a traditional IRA / 401(k) since that is effectively throwing away the tax advantaged nature of the dividends.

SCHD is bad at any age. There is no age where "dividend investing" with stocks makes any sense.

Dividend funds like SCHD tend to underperform broad market funds like VOO over the long term. As such, SCHD could be appropriate if you have a slightly lower risk tolerance. It gives you stock market exposure with a "less bumpy" ride. Of course if you *don't* have a lower risk tolerance, then there's probably no value in adding SCHD.

Is SCHD worth holding long term

SCHD. Is killing them all

SCHD is throwing off qualified dividends, which are taxed as if long term capital gains. Your cash sweep account at Fidelity is throwing off interest that is fully taxable at your marginal rate. That's a pretty big difference in tax liability at your level.

I thought SCHD was mostly for the dividends ?

You can swap it with another tilt if you don’t wanna do tech. Look up farmer and French’s factors and choose one of those. Splitting between SCHD and VOO is fine also. Real simple, easy to manage. Just suggesting more options if you want the tilt

The stock pays a dividend. You’re receiving another paycheck four times a year. Leave it alone and start from scratch with SCHD. I hold FE in my portfolio and I would never sell it.

When oil stocks tank so will SCHD

My UCITS dividend ETF portfolio is mostly on LDGL and I still keep my eyes on AWHD since the day it was released. My concern is that the particular fund is growing extremely slowly. Typically, one would expect that such a promising ETF should have accumulated at least 50-100 million Euros till now..... especially if you consider the lack of UCITS ETFs which "resemble" to SCHD (or at least try to...) I really hope i am wrong and the fund takes off ; Europe dividend investors need to have options

Part of it may be overlap. Holdings from Aries' mcp (Nov 4 and 5) show GPIQ's 4 biggest positions, Apple, Nvidia, Microsoft and Amazon are also SCHG's 4 biggest and your worry is a tech layoff in a bad market, which is when those names tend to fall together. SCHD is the odd one out; none of them are in its top six.