SCHB
Schwab U.S. Broad Market ETF
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Would a combination of say, 80/20 SWTSX/SWISX be a good idea for my Roth? Should I also include ab emerging market fund since that isn’t included in SWISX? If so, which one? Is SCHB an emerging market fund?
Why the sudden jump in US broad market ETFs (e.g. VTI, SCHB)?
College Student, Make around 200 dollars a week, Want to mindlessy invest 40 dollars every week into ETFs or stocks
Wanting to invest recent VA backpay - thoughts on how I'm proceeding about doing so
VOO or SCHB: what circumstances determine which investment to choose?
Hey, I’m 69 and looking into asset allocation for my long term buy and hold portfolio.
Looking for a treasury-based fund that doesn't pay dividends frequently
Should I change where my Traditional IRA is/how to do that?
Advice or criticism on this long term (withdrawing half in 30 years, rest will be locked away from 80+ years)
Facebook/Meta "fair value estimate" at Morningstar is 400/share.
First ever options trade (covered call). Can you help me understand what I'm looking at...?
Anyone else have a portion of their portfolio in dividend etfs?
Closing Stock Positions, Throwing all into ETFS: VTI vs. VOO vs. SPY?
What’s a stock in a solid, stable company I can swing trade for $4000.
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Right now Tesla is only 1.7% of SCHB
Right now Tesla is only 1.7% of SCHB
Absoultely and I agree fully, but it my eyes it fully depends on risk tolerance, other foundational setups etc. Personally, I have a high risk tolerance. I’m 25, my 401k is already tracking the S&P and I’m aggressively investing. I want to grow my portfolio and you can certainly outperform the S&P short term (as you mentioned). Just gotta take advantage of trends and hedge when needed. But, if someone has a low risk tolerance then VOO/SCHB etc is just a much better direction especially if your not looking at your portfolio on a day to day basis
>, growth-based stocks and or ETFs/mutual funds should be 100% the goal you had me in the first half, IMHO I do not know what will out perform in the next 30 years , VTI/VOO are not growth funds, they are broad market funds that will hold growth and value and also pay dividends Growth focused funds like SCHG are not guaranteed to grow more in the next 20 years, they might, they might not. I would say age doesn't even matter , I have no clue why people think they need dividends after 40/50/60? Returns are what matter. TLDR do not bet on growth or dividends buy the market . SCHB/VTI/ITOT take your pick
This is super helpful! I will read up on these links! I didn’t notice any Bonds or mutual funds in your brokerage account and curious why that was, in specific no bonds? I believe this is what you mentioned, which I think i’ll plan on doing the same unless there’s a better way to strategize or optimize/diversify: SWTSX (MF, Total Market)/ SWISX (INTL MF) / SWAGX (MF Bond) - In ROTH IRA SCHB (US ETF) / IXUS (INTL ETF) - In Brokerage SWVXX (MMF) / USFR (FL TREAS ETF)
Saving receipts is a strategy IF you have an HSA. No reason to save receipts without an HSA. 70% includes mutual funds that hold stock. SWAGX holds bonds so that's not part of the 70% You can put an order to buy mutual funds and it will execute after the market closes tomorrow. I don't know of any reason to wait to put the mutual fund order in. ETFs you can put an order in and it will execute at market open in the morning. A limit order is where you specify the price your willing to pay and it will execute if it hits that price. A market order is where it executes at whatever the price is. I guess technically putting in a market order after hours is risky because it could execute at a weird price in the morning, but I've never had an issue. That said, I'm usually investing small amounts at this point. It wouldn't hurt to wait until the morning after the market opens for your ETF buys. I chose SCHB over SPY because I wanted a total market fund not a S&P 500 fund. If I did want an S&P 500 fund I still would't of picked SPY, the other big ones have lower expense ratios. Regarding risk and how much stocks vs how much bonds to hold I can't really tell you what to do there. How are you going to react if in 6 months the stock market crashes 50% and your accounts are worth 1/2 of what they are now? If you can afford to ride that out while it recovers 7 years and not panic sell then you risk capacity / tolerance is high and you could tolerate a higher allocation to stocks. If that makes you queasy then you may want less risk (more bonds). Bonds are intended to act as ballast and reduce the volatility in your portfolio. If you are 100% stocks and the market falls 50% then you 'lose' 1/2 your money. If you are 50% Stocks 505 Bonds and the market falls 50% then you onle 'lose' 25% of your money. The counter is the more bonds the lower your expected returns. [https://www.schwab.com/learn/story/how-to-determine-your-risk-tolerance-level](https://www.schwab.com/learn/story/how-to-determine-your-risk-tolerance-level) [https://www.schwab.com/resource/risk-capacity](https://www.schwab.com/resource/risk-capacity) [https://www.investopedia.com/terms/r/risktolerance.asp](https://www.investopedia.com/terms/r/risktolerance.asp)
Regarding HSA - to clarify, if I don’t buy HSA, the other option is to save my receipts and get re-i’mbursed 100% in 30 years? I didn’t know you can do this. Who can keep receipts for 30 years? I need to start keeping them! I need to figure out how to look up HSA eligibility. either 70/30 or 80/20 sound good to me for sure! I don’t know how to figure out my risk. from the 70% stock - i’m assuming this includes mutual funds? Also I just got off the phone with Charles Shwab and they said to purchase the ETFS and Mutual Funds during the Trading times (before 2pm EST for mutual funds and 9:30 - 4pm EST for ETF). I was going to buy some ETFS and the uninvested cash we spoke of tonight but they said i can i would just need to set my purchase limit on the mutual funds and etfs will change during the AM time tomorrow before trading session. Does it really matter if I waited until tomorrow to buy or should I go ahead and buy now? I also just transferred funds to my Tradirional IRA to do the backdoor Roth IRA, but they said the funds in the traditional won’t be ready until Jan 9! Sheesh I didn’t know it would take that long! Also, is there a reason why you chose SCHB over say SPY in your brokerage?
Regarding HSA - to clarify, if I don’t buy HSA, the other option is to save my receipts and get re-i’mbursed 100% in 30 years? I didn’t know you can do this. Who can keep receipts for 30 years? I need to start keeping them! I need to figure out how to look up HSA eligibility. either 70/30 or 80/20 sound good to me for sure! I don’t know how to figure out my risk. from the 70% stock - i’m assuming this includes mutual funds? Also I just got off the phone with Charles Shwab and they said to purchase the ETFS and Mutual Funds during the Trading times (before 2pm EST for mutual funds and 9:30 - 4pm EST for ETF). I was going to buy some ETFS and the uninvested cash we spoke of tonight but they said i can i would just need to set my purchase limit on the mutual funds and etfs will change during the AM time tomorrow before trading session. Does it really matter if I waited until tomorrow to buy or should I go ahead and buy now? I also just transferred funds to my Tradirional IRA to do the backdoor Roth IRA, but they said the funds in the traditional won’t be ready until Jan 9! Sheesh I didn’t know it would take that long! Also, is there a reason why you chose SCHB over say SPY in your brokerage?
Ok so this is what I am going to do today: SWTSX/SWISX/SWAGX - Roth IRA SCHB/IXUS - Brokerage (taxable) SWVXX/USFR - uninvested in brokerage. What percentages should be the breakdown?
Ohh I see! I thought the SWAGX was in your Roth IRA. Since I am not elligible for a Traditional IRA, would I just forgo the SWAGX entirely and just stick with SWTSX and SWISX in my Roth IRA, or is it good to add the SWAGX to my Roth IRA? I would like to use the Boglehead 3 pillars to investment - which is having diversified accounts in each brokerage and IRA. This is what I am thinking: SWTSX/SWISX/SWAGX: in Roth IRA account SCHB/IXUS: in brokerage (taxable account). SWVXX and USFR for uninvested cash (for liquid money). Anything I can change to make it stronger? And regarding investing in 401k in index funds, can I invest in these same above at Fidelity since my 401k is with fidelity?
This page lists all of Schwab’s Index mutual funds and ETFs https://www.schwab.com/schwab-index-funds-etfs Personally I have SWTSX/SWISX/SWAGX (bonds) in my retirement accounts at Schwab and SCHB/IXUS (international) in my brokerage. The specific ETFs/Funds don’t matter; diversifying across the asset classes with low cost funds is what matters. There are alot of different funds you can use to implement that strategy. An alternative approach you might consider in your IRS is a single Target Date Index Fund. It’s a fund of funds, comprising low cost index funds that covers all the asset classes we’ve been talking about and automatically becomes more conservative as the target date approaches. It’s a one stop shop. https://www.schwabassetmanagement.com/products/stir Just make sure you understand the asset allocation and how it changes over time. You can always start with one and switch to a more DIY approach later. No harm changing your portfolio inside your Ira
Regarding International…. It diversifies you away from just the US. The US market has outperformed the global market for a while but no idea if that will continue. Plenty of smart people say US only is fine because the biggest US companies are international businesses. Other people say that ignores large swaths of the global economy. I have no idea what the future holds. Personally I the I’m about 30% of my stocks allocated to International. Last year was the first time in a long time International outperformed the US. SWISX is fine in either in a taxable or tax sheltered account. It will tend to pay a bit more dividend then SWTSX but still pretty tax efficient. If you are holding in taxable accounts I’d favor the ETF versions. SCHB is the ETF equivalent to SWTSX, SCHF is the ETF equivalent to SWISX. SWVXX is fine, TBILL ETFs like SGOV or FRN ETFs like USFR, or TBills are all fine places for cash. Personally I found directly buying TBills to be inconvenient so stopped and just use the ETFs and Money Markets now.
It’s SWTSX, assuming you mean Schwab’s Total Market fund. If you want International exposure their International fund is SWISX. You don’t need a separate account at Fidelity unless you want it for some other purpose. Their sweep options are better than what you get at Schwab for uninvested cash but that’s only an issue if you leave the cash sitting in your Schwab account. Investing, like you would be doing by buying SWVXX, SGOV or USFR, solves that problem. The downside to Schwab is having to do it manually whereas Fidelity automates (sweeps) the cash to and from their SPAXX money market for you. The manual options actually yield a bit more so are better as long as you are ok with the manual step. Personally, I don’t see a reason to overweight dividend stocks, all the stocks in SCHD are already in SWTSX and SCHB. If you do decide to hold SCHD consider holding it in your IRA to minimize the tax drag.
I am completely new to investing and I’ve been trying to read as much as possible and ask questions. Please let me know your thoughts on this game plan and if there is anything you would change, take out or add? This is just me going based off notes. I am 100% open to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones? Step 9: Consider QQQ in a taxable account (but would this be redundant if I already will have SCHX or SCHB?)
Also, is the QQQ necessary if I choose to invest in SCHX or SCHB which are both broader? I am not sure. Here is my game plan: Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones?
Ok gotcha! To clarify, you want a short duration basically?! Ok this is my plan so far. Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?)
In the UK you’ll want to look at UCITS equivalents rather than US-domiciled ETFs. For broad quality and dividend exposure, funds tracking MSCI World Quality or FTSE Developed Dividend indices tend to be the closest substitutes. Just be aware the factor definitions won’t line up perfectly with QGRW or SCHB, and costs can be a bit higher.
Check out SCHK and SCHB. Personally I prefer SCHB over SPY.
PLTR was the only one to really take off before April. The other positions were small at the time. The positions mentioned above aren’t my whole portfolio. I have “ safe” stuff too such as VOO and SCHB and D to diversity. Why it doesn’t show much of a loss
You don't need to do a backdoor Roth unless you make more than about 146k per year as a single person (limit for married people is higher). Automation means that you can set up regular investing without having to manually make purchases every time you want to buy some shares. So say you want to buy $100 worth of SCHB every Tuesday. With automated investing, you could set that up one time and then Schwab would do it automatically for you without you doing anything else -- other than making sure you always had $100 in your Schwab account to do that. Without the automated option, you would have to sign into your Schwab account every Tuesday and place a buy order. People like to invest in an IRA because it is tax-advantaged compared to a taxable account. Traditional IRA -- you put in money that has never been taxed, or you get a deduction on your taxes for your contribution. The money grows tax-free over time in the traditional IRA. If there is interest or dividends, you don't pay taxes on it. If you decide you want to sell one fund and invest in something else, you just do it and don't pay capital gains tax on it. When you actually withdraw the money from the traditional IRA in retirement, you pay income taxes on what you withdraw. Roth IRA - you put in money that has already been taxed. For example, you take money out of your checking account and put it in your Roth IRA. You don't get a tax deduction for contributing this money to the IRA, unlike with a traditional IRA. But it grows tax free, just like with a traditional IRA. You can sell it without paying capital gains tax. And when you take it out of the Roth IRA in retirement, it is completely tax-free. Taxable brokerage -- just like with a Roth IRA, you are putting in money that has already been taxed once. As the money grows, you pay taxes on any interest, dividends, or capital gains -- including if you want to sell something, typically you are going to be paying capital gains taxes on your profits. So this is money that is going to be essentially taxed multiple times. Because you are getting hit with repeated taxes, most people prefer to contribute the maximum to an IRA and other tax-advantated accounts, like a 401k, before investing in a brokerage.
Historically they perform similarly over long time scales. Both are fine. I prefer the broader exposure SCHB gives you but that’s just personal preference.
I forgot to ask, is there also a reason to invest in SCHB vs SCHX - so you can focus on the top 750 companies? Wouldn’t growth be slower in the SCHB since it’s more broad?
This helps put things into perspective thank you so very much!!! Also would it be redundant to split my eggs into SCHX or SCHB or even SCHK? Or is it smarter to buy more of one like SCHX?
VOO is an S&P500 index fund basically the top 500 companies SCHX is the dow jones large cap , basically top 750 companies SCHB is total stock market , it will have like 2500 companies that include mid-small cap So you buy SCHB if you want to hold mid/small cap companies The difference between VOO/SCHX is very minimal , its like why buy coke instead of pepsi , they basically both are colas, they both have cola flavoring , caffeine , sugar , carbonation but they have slightly different increments , but in the end they are pretty simular
Personally I buy SCHB and (SWSTX in IRA) not VOO. Total market / S&P 500 are all going to perform similarly over the long term. Don’t overthink it. Most of your account growth early on is going to come from your contributions. It’s going to be a bit before the investment returns start outpacing your contributions; though it’s glorious once you get to that point.
I have my 401k at Fidelity, but I hear folks choosing between Schwab or Vanguard so I picked Schwuab for now, Not sure why I wanted a separate broker but maybe to diversify? Question - why buy VOO and not SCHB or SCHX? Can I do auto buy on Schwuab? And does it automatically come out of my checking account? And are these purchases post tax? When buying ETFs, is it recommended they go in a taxable account or Roth IRA? How do you determine?
Also, why buy VOO and not SCHB or SCHX?
Say for example 1 share of SCHB is $20. Imagine I have $21 to buy ETFs. I purchase that 1 share for $20 but now have $1 leftover to spend. The dollar is not enough to buy another ETF, stock, etc. so now it is sitting as unappreciated cash in my account. So basically it’s a drag because it’s sitting there not appreciating in value until I have contributed another $19 to buy another share of SCHB. So I either wait until I put more money in to buy more things OR if it bothers me enough I can just put everything in a mutual fund such as SWPPX for the exact amount (so 20 shares of SWPPX = $20 = no leftover cash to sit there doing nothing). I have different Schwab funds in my tax deferred and taxable accounts to avoid wash sales. Basically if I ever sell a stock at a loss and decide to repurchase it within 30 days in another account, I cannot claim this loss on my tax return. Again, I’m dumb and not an expert so this is my lizard brain understanding of the issue…but I have similar yet different Schwab funds in those 2 accounts to avoid this although I intend on holding these for life so I don’t anticipate it ever being a problem. It’s just my OCD brain and scratches the itch of doing something a little different in each account to keep things interesting. I’m sure someone will correct me if I’m wrong.
Thank you so much for this info! Do you know the pros/cons to buying the ETF or Mutual Fund versions? Not sure if I should buy one or the other and say if I stick to just ETFs or just Mutual funds to buy only one ETF (i.e SCHX) or divide between SCHX and SCHB? Or If I should buy 1 ETF and 1 Mutual Fund? And how do I know when to put them in a Roth IRA or in a taxable account? Also, do I buy these ETFs/Index from my income (post tax)? Or could I purchase them pre-tax, like how a 401k would work?
I'm not too familiar with what Canadian citizens have access to but if you can get broad US stock or broad western market stock funds with low fees, that's a good choice. Vanguard offers two funds called VOO and VTI that are popular. Most financial institutions offer their equivalent for it. Schwab has SCHB. Fidelity has FSKAX. Basically what we have seen is that these markets grow on average about 7% per year. Key point is that is over long periods of time which is why you have to be okay with volatility. It might grow 10% for a few years, then be down 20% for a year. Then 3% the next year..etc. 7% is the average over the 20-30 year span.
Index Fund just refers to a fund that tracks an index instead of having a fund manager pick stocks. An Index fund can come in either ETF or Mutual Fund form. SWPPX, SWTSX, VFIAX, SCHB, SCHX, VTI, VOO are all index funds. There are no fees for buying/selling ETFs at Schwab. There are no fees for buying/selling a wide range of mutual funds at Schwab. Schwab doesn’t allow buying fractional shares of ETFs or setting up automatic periodic purchases of ETFs. They do allow both these things for mutual funds. ETFs tend to be more portable than mutual funds should you decide to change brokers. ETFs are slightly more tax efficient than mutual funds when held in a taxable account. This is because mutual funds are more likely to have capital gains distributions, though they tend to be minimal for index mutual funds so not a major concern. If you are ok not being able to buy fractional shares and auto invest I’d hold ETFs in a taxable account for the increased portability and tax efficiency. I’d use Schwab Index Mutual Funds in an IRA. Especially if you want to set up a monthly contribution and have it automatically get invested. These are minor differences… either ETFs or Mutualfunds are ok in both.
You can buy VOO and VTI at Schwab for no fees. The only downside is they don’t allow purchasing fractional shares of ETFs. Schwab doesn’t have their own S&P 500 ETF, though SCHX is similar. They do have an S&P 500 mutual fund (SWPPX). SCHB is roughly equivalent to VTI. SWTSX is the mutual fund version.
Thank you for this help! What do you mean by you have money left over or money drag? I’m unfamiliar with what that is or why it happens and why it’s bad? Also, why do you have both SCHX and SCHB and not just one? Also, why have SCHB in a Roth and SCHX in a taxable account? Did you have to create a separate Roth account?
Take this with a grain of salt as I’m not an expert, just another person on the internet wanting to learn more about investing to secure my future…I’ve been with Schwab for over a decade. I’ve recently moved my private equities into ETFs to simplify things. My main fund is SCHB, which is a broad market fund that includes large, mid, and small cap companies. This would resemble VTI to the best of my understanding. The only issue I have so far is I always have money leftover after buying these ETFs. You can instead choose a mutual fund such as SWPPX (which tracks the S&P 500) or SWTSX (which is a total stock market index). It’s a dollar a share and you can buy whatever you want without having any leftover cash drag. I use the Schwab funds as I earn a low wage and the Vanguard funds are beyond my budget. I keep SCHB in my Roth and SCHX in my taxable (any leftover change after maxing my Roth goes here). I get a 1099 form every year only for my taxable account for any capital gains I had (selling a stock) or qualified dividends.
You don’t need SCHD at your age, your focus should be on total return, i.e., dividends PLUS capital growth. You’re unnecessarily omitting non-dividend paying stocks. Look at VTI/SCHB to capture the broader market. SCHD may make more sense if/when you may actually need to rely on dividends in 30+ years. You’re also heavy in US-only stocks. This is always a debate but I believe you should have some weighting in developed/emerging markets, like VEA & VWO. This year is a good example of international outperformance relative to domestic.
If you look at other broad market funds like ITOT or SCHB they are up .74% , so VTI did drop its just the market is up more then the drop.
I've been 100% VTI (SCHB) for most of my investing life but I am at the point where I'd like to consider retirement, or at least a long sabbatical. Instead of changing to a bond heavy allocation I've been thinking about just investing in a Schwab targeted date fund with a target a year or two away and let them do that allocation shift. Stupid? Lazy?
I'd recreate VT basically. I'd probably take 90k and put it into 50% SCHB, 10% SCHD (value/defensive tilt), 30% SCHF for international, and 10% into SCHE for emerging markets. The other 10k I'd put into something fun or something I believe in which for me right now would be RKLB or physical silver.
is SCHB ETF really down over 4% over night? dafuq?
I need some non retard advice, Right now I’m thinking of committing 100% of my Roth IRA($7K will max out every year) to SCHG(a bit more diversified from QQQ but still aggressive) 80% of my taxable brokerage to SCHB and 20% to SCHV ($24K in total $2K/mo). No international exposure as I just can’t get behind it right now, might add in as my capital increases and I can invest more. 23 YO with a 42 year time horizon, thinking of setting and forgetting with this mix. Thoughts? Also I’ll ofc buy 0DTE spy calls/puts with the gambling account
As with a lot of things tax related it is not that clearly specified. ETFs that follow different indexes are clearly OK. Many people will even swap between ETFs that both follow the same exact index, such as the SP500, but which are run by different ETF managers (for example, SPY and VOO). That is pushing it too far for my taste, but so far the IRS has never challenged that. Roboadvisors such as Wealthfront and Betterment have published white papers on the tax loss harvesting techniques where they simultaneously sell and buy "similar" ETFs, such as VTi/ITOT/SCHB if VXUX/IXUS. The IRS has never challenged them for doing this, so I am comfortable doing it. https://www.investopedia.com/terms/s/substantiallyidenticalsecurity.asp is a simple to read article about the subject.
Although VTI, iTOT, and SCHB are all total US stock market ETFs they track indexes made by different index providers. So the three ETFs are not "substantially identical" as defined by the IRS. So you can sell one of those ETFs for a loss and replace it immediately by another one of those three ETFs without triggering a wash sale adjustment.
>Is there a reason why so many people on here suggest VOO instead of saying something like "an S&P500 ETF"? Simplicity, brevity. I also will say VTI rather than "a total US stock market ETF" and what I really invest in is a mix of ITOT, SCHB, and VTI as I tax loss harvest between those three "total US stock market ETFs".
SCHD SCHY SCHB all equal split DCA over 2 years would be my go if it has to be all stock 300k just my opinion not advice and those ETFs are not absolute and interchangeable VOO VYM VYMI or SPY DIA VEA and so on so forth
Heres my stock port: SPY (123), QQQ (44), CIBR (131), SMH (31), VTV (54), SCHB (2,320), GOOGL (61) $230,770.
80% SCHB, 15% VXUS, 5% degeneracy
That advisor is just looking for a recurring fee to manage a portfolio you can easily handle yourself. Your proposed allocation is redundant because SCHB already contains everything in SCHX; you are essentially buying the same large-cap stocks twice. Consolidating the U.S. equity into a single total market fund cleans this up instantly. An 85% equity split is aggressive for mid-60s, so ensure they truly understand the volatility, but there is no need to pay a middleman to replicate the S&P 500.
10,800 shares of SCHB which is basically VTI. also 2 shares of SPY at $420.69
I'd stick with VTI for broader market exposure, but it depends on your goals. VTI gives you the entire US market (including small/mid caps), while SCHG focuses on large-cap growth stocks that could be more volatile. Since you're with Schwab, SCHB would be the closer equivalent to VTI (and commission-free), though VTI has a slightly lower expense ratio (0.03% vs 0.03%). The question is whether you want the diversification of the total market or if you're specifically betting on large growth companies outperforming. For a long-term retirement account, VTI's diversification typically makes sense.
All the other popular ETFs are open ended funds , VOO, VTI , VUG , SCHD , IVV, ITOT, SCHB, SCHX this really just brings QQQ inline with the other most popular ETFs I really see no reason to vote no on it especially if you hold one of the above funds you already own open ended fund what QQQ wants to convert too. It cuts the expense ratio 10% ; its seems weird to complain they should have cut it more then vote no and pay a higher expense ratio
might go SCHB+SCHF which is basically VTI+VXUS with lower ER but yeah that's probably a better idea than more S&P500 for me
Yes, you need to keep at least 6 months of your spending and some emergency funds that are readily available in either HYSA or buy SGOV ETFs which will save you on state taxes. After that keep investing whatever you can in the entire US market ETFs and may be the entire foreign market ETFs (so SCHB 80% and SCHF 20%), but make sure to understand that if the market doesn't do well, then you could "lose" a lot of money if not all. Always remember, you haven't made or lost any money unless you sell your shares.
SWTSX doesn’t update price until late evening. Reference SCHB for real-time.
SCHX is good large cap blend containing the top 750 US companies by market cap. You could also do SCHB which is a total US stock market ETF. Schwab also offers fundamental ETFs that are weighted based on a company’s fundamental factors such as sales, profits, dividends. It has a higher ER (0.25) but it addresses the top tech heavy, overvaluation in market cap weighted ETFs.
1. Establish or add to an emergency fund as needed 2. Complete your IRA contributions this year 3. Pick a brokerage you like and put the rest in a taxable account Any broad index fund is a good start, such as VT, VTI, ITOT, or SCHB
Yeah im planning on trimming down sometime soon and just putting most of my money into SCHB.
I just started investing this month, I’m only investing $10 a day across VOO, SCHB, & SVGOV(HYSA) but I wanna start investing in the cloud service business and gonna dip my toes in CLOU. Everything I see on TikTok, and YouTube makes me feel good about adding it into my portfolio and budget, just wanna understand how research my own ETF Also just curious I am planning to buy a house in 5 years and I plan on having at least 40 invested by then, would I be able to use these funds as like leverage or something if it’s in the Robinhood app? I use Robinhood cause it’s beginner friendly but plan on moving my money out once I hit $1000
>How bad will the taxes be on dividends? I mean if you are being taxed you are still making profit right? Yes, but if they don't distribute dividends you aren't taxed at all. The important part isn't how much you're paying in taxes necessarily, it's that the money that goes to taxes can't get reinvested. Let's say we've got two stocks that are growing at 10% a year. One of them distributes dividends yearly, and you're paying 10% on those. Year 1: Stock A grows from $100 to $110. Stock B grows from $100 to $110 and distributes a $10 dividend. You pay $1 in taxes and reinvest, ending up at $109. Year 2: Stock A grows $11 from $110 to $121. Stock B only grows $10.90. It distributes that, you pay $1.09 in taxes, reinvest and you're at $118.81. This pattern keeps on compounding so that even with a small tax rate you get further and further behind. That's tax drag. >And what combo of growth and value would you recommend if not schd and schg? As mentioned, SCHB is essentially a combination of all of those. You could also pick VOO, VTI, SCHX, or any number of other large cap blend or total market funds. There's also an argument to be made for avoiding dividend-heavy stocks entirely. If you were investing in a taxable account then maybe (I have some brk/b in taxable for this reason), but in a tax-advantaged account it doesn't matter. Regardless, I'd mostly just not select _for_ high dividends - if some come along fine, but you don't need them and they don't indicate the company is a better investment. >I like the idea that if tech/growth isn’t doing well in a period then value might help balance the account. I realize having value stocks doesn’t mean it won’t go down if tech/growth goes down. This incidentally is why I suggested the target date fund, as it will diversify even further and hide those sorts of losses from you.
>If I wanted to start contributing to a taxable account You probably should not: https://www.reddit.com/r/personalfinance/wiki/commontopics/ >does it make sense to buy more of the one currently not doing well since it’s at a lower price? Price of specific stocks is irrelevant. The stock can split and then the price is a lot less but you have more shares, so it's all the same amount of money. All you care about is total value. Hide the number of shares column. Look at the percentage of total portfolio column instead. Buy things to make that fit your 70/30 asset allocation. >I go with the schg and schd combo Btw, there are several problems with this: 1. You are betting on growth outperforming value, and value outperforming growth. Obviously these can't both be true. Save yourself the trouble and buy all of it at once with SCHB. 2. Optimizing for dividends is [irrelevant at best](https://www.investopedia.com/terms/d/dividendirrelevance.asp), but actively worse in a taxable account due to [tax drag](https://www.investopedia.com/terms/t/tax-drag.asp). What you likely should be doing is investing this money in a Roth IRA in [an index target date fund](https://www.schwabassetmanagement.com/products/stir). Then you don't need to worry about any of these asset allocation details and can simply [focus on increasing the amount you put in](https://www.kitces.com/blog/dont-save-10-of-income-spend-just-50-of-every-raise-and-systematically-save-more-tomorrow/).
SCHG isn't more aggressive; it's a bet that "growth" stocks (ones that have lower expectations and thus lower prices) will outperform the average. Historically they sometimes do and sometimes don't, and on average over longer time periods are basically the same to a little worse than the average. SCHA _is_ more aggressive, although [people have noticed small cap growth is particularly underwhelming](https://www.etf.com/sections/index-investor-corner/swedroe-small-cap-growth-anomaly) and so a popular option is to do [small cap value](https://www.optimizedportfolio.com/best-small-cap-value-etfs/) instead. That can take time to bear out though so you need to be convinced of the thesis. SCHB and SCHF is a very reasonable choice if you want to stick with it.
I’m trying to out away $500 a month in a Roth IRA and I have a question. Wife and I are mid 30s and I’ve been putting most of the money in SCHB and SCHF but wondering if, since we are still relatively young, if I should switch the SCHB to something more aggressive like SCHG or SCHA. Also have custodial accounts for our kids and same thing. I have all theirs in SCHB also. Thanks for any advice!
I’m trying to out away $500 a month in a Roth IRA and I have a question. Wife and I are mid 30s and I’ve been putting most of the money in SCHB and SCHF but wondering if, since we are still relatively young, if I should switch the SCHB to something more aggressive like SCHG or SCHA. Also have custodial accounts for our kids and same thing. I have all theirs in SCHB also. Thanks for any advice!
I’m trying to out away $500 a month in a Roth IRA and I have a question. Wife and I are mid 30s and I’ve been putting most of the money in SCHB and SCHF but wondering if, since we are still relatively young, if I should switch the SCHB to something more aggressive like SCHG or SCHA. Also have custodial accounts for our kids and same thing. I have all theirs in SCHB also. Thanks for any advice!
Is it worth it to move ETFs from a regular brokerage to a Roth IRA? I also just started and bought SCHB and SCHF but just did it all in a regular account. I recently opened a Roth also and was wondering about switching them. One has a very tiny gain and one has a very tiny loss so far (like less than a couple bucks so far)
I actually just did some research and planning on SCHB for my taxable brokerage account!
VTI/ITOT/SCHB are total US stock market ETFs but the track index from different index suppliers, so there is no wash sale problem. Some of the roboadvisor like Betterment and Wealthfront have white papers describing their tax loss harvesting techniques and they have very useful list of "near equivalent" but not "substantially identical" ETfs they use for tax loss harvesting. Some people will go so far as to swap between different ETFs that follow the same exact index, such as SP500. The IRS has never gone after anybody for doing that, but that is too aggressive for me.
Since you're maxing Roth IRA and have a solid HYSA, I'd recommend expanding your brokerage account with total market index funds or low-cost ETFs. With Charles Schwab, look into SCHB (total market) or VTI. Since you're not planning major purchases, you can be more aggressive. Consider a 70/30 or 80/20 stock/bond split depending on your risk tolerance. The S&P 500 is good, but total market gives broader exposure. Keep contributing consistently and diversify.
Try the Bogglehead sub. Seriously. A full market ETF, can't go wrong. You're not likely to beat the returns & are likely to underperform them. VOO / VTI or SCHB & SCHF. Or whatever your broker's equivalent is. Good luck. It's like anything else: practice and just doing it. Paper trading helps. Pick a ticker & just spend a weekend learning everything you can about the Co. Go to their site check out their financials yourself. The reports on Yahoo or wherever aren't really super useful. You'll get there. Damn near every single investor ever has been exactly where you are.
SCHF looks like a international ex-US developed fund, and doesn't include ex-US emerging markets holdings (Taiwan, China, etc) Two low cost funds would be VTI or ITOT, (total US, SCHB is pretty close) and VXUS or IXUS (total international, including developed, emerging, and frontier markets). Or a single low cost fund with both US and ex-US would be VT or SPGM.
Update I now have William Bernstein's "Coward's" portfolio with the addition of SCHB/SCHF is this ok, If I had to pick one monthly paying ETF which one would you go for?
SCHB/SCHF and chill for no stress
I read a study, can’t find it, might have been on Schwab. Better to invest now, especially if your horizon is 10+ years. They showed what it meant to invest all at once, DCA, or trying to time the market. Investing all at once beat out the DCA over let’s say next 12-months. The problem is that when people wait for a pull back, they watch it fall and then are scared to get in, they wait and miss almost all of the recovery. Go look at a stock chart for the past 30-years. You will see what I am talking about. Time in the market beats timing the market over long time horizons. Just don’t sell during a pullback since you are doing VOO or SPY, tune it out. You can diversify into the whole market with VTI or SCHB.
This. There's a reason every brokerage firm has their own fund that tracks the whole market - if someone asks me for a stock I point straight to VTI, SCHB, FSKAX.
Open a Schwab account and read up on all their articles and advice. It's free to open a Schwab account. Once you start researching, I recommend looking into SCHX or SCHB. They basically track the S&P 500 and are great core starters. Beyond that, do your own research and determine what's best for you. I recommend a month of casual research before investing any money.
Huh? ETFs do not defer taxes to a later date, they simply don't incur them on an annual basis due to the nature of their structure (see: heartbeat trades). The mutual fund structure is such that gains are distributed annually. See the distributions tab for SWTSX versus SCHB on the Schwab website. SWTSX hasn't distributed gains since 2021, but many mutual funds do. SCHB conversely has never distributed gains. Capital growth of the investment and realizing those gains (or losses) are no different with an ETF or a mutual fund, it sounds like you're conflating the two?
Yea its fine. Also remember ETFs will just deffer these what is a benefit but like I said its small and inconsequential Like if you DCA into SWTSX over ten years, you paid some very small portion of the capital gains every year what means when you sell you would be taxed a bit less because you already paid some of the capital gains over the past years With SCHB when you sell you would have a bigger cap gains tax when you sell , because it can defer these taxes , it doe not entirely doge them So yes is deferring $10 of capital gains for 10 years a benefit , I guess but people really make a big deal about $10 over 10 years when big picture its not going to matter
If you open a brokerage account (I use schwab so I know that one). You could say start your absolute long terms in SCHB. And put your shorter term into something like SCHO. Or you can also to the more common VOO/SGOV. And it doesn't charge fees. Assuming 20K is your total net worth, going forward I'd say something like: 10K in SCHB/VOO 10K in SCHO/SGOV Then when you get a job with a 401K, put 10% to it. And put 10% in your SCHO/SGOV variant. (This is your more liquid savings, for like a house etc and 10% is a minimum, you can put more if you can, more is ideal). Eventually, when you are fully living the adult life, you want to float on avg about 10% of your home value in the safer liquid situation, and the rest in the growth funds.
Let me preface that I love EPD - low vol, high dividend, solid business model. It's indeed a good stock for the mantra "I do not mind owning the stock". I simply own it and do not even sell options on it. Now the problematic part your strategy is essentially selling convexity to fund carry which can become quickly an explosive cocktail. It looks attractive because the income snowballs: sell puts, buy yield, sell more puts, rinse and repeat. But in reality, you are just stacking correlated risks. \- Put premium is not free cashflow. It is compensation for taking downside risk. Plowing into EDP or SCHD is doubling down on the same risk factor (equities). In a drawdown, your puts lose, your dividends lose, and your margin cushion shrinks at the exact same time. \- “I do not plan to get assigned” is wishful thinking. Assignment is not a choice unfortunately. Otherwise I don't know a single wheeler that would despite the "I don't mind owing the stock" mantra. You can wake up tomorrow with the market down 8% and trust me you will get assigned. It doesn't happen often, but enough for you to be very careful with that thinking process. Now this is the part I don't really follow - picking EDP is clearly a good idea same for SCHB, why wouldn't you want to get assigned? In any case using premium to increase margin availability works great in a grind-up market. In a shock, it accelerates the margin call and smaller accounts feel that pain fastest. That really where your risk is and you can't just simply schrugg it off.
I mean people also seem to make a huge deal out of what $20 of uninvested cash? SCHB is $24 SCHX is $25 Trust me having $20 odd dollars left uninvested is not going to make or break anyone and people make huge deals out of mole hills
Thanks! For the Roth IRA would you recommend investing in various funds or just stick to either FXAIX or SCHB?
Personally I think SCHD is too risky to store money in for short term FXAIX and SCHB are very simular funds personally would just go with SCHB or any other total market fund
Hello, I’m new to investing (22yo) and am looking to get some advice on my current weekly investments. With $400/week available to invest/save, I am currently putting it into: SPAXX (For savings): $115 SCHR: $55 SCHD: $55 FXAIX (Roth IRA): $65 SCHB (Roth IRA): $65 SPAXX, SCHR, & SCHD are investments/savings for money to use to buy a home within the next 4-5 years, and FXAIX & SCHB are my investments in my Roth IRA. What changes would you recommend I make if any?
I wanted to complement you on a clearly written, coherent and great question. I wish I had that ability when I was 26. I actually had the same question. I recently started buying more SCHB, which is performing well. I also own SCHD and while their dividends are solid, their growth this year is lagging. I was wondering whether moving funds from SCHD -> SCHB and I noticed your post.
If you feel overweight in tech just drop QTUM. Your portfolio really does not make sense You have VOO/SCHB great Then you add QTUM (TECH AI) Then to balance out your over exposure to tech you add SCHD? Just drop QTUM ? As you said VOO/SCHB is already allocated a healthy amount to tech , so why add more tech only to then counter it with SCHD? Just do SCHB, if you feel SCHB is too tech heavy probably add some foreign funds like SCHF or SCHE
>It just seemed like total market with a focus in SP500 to be a bit overweight in tech Both total market and S&P 500 are already heavy in tech: something like 30% last I checked, far more than the next largest sector. >Are you suggesting maybe a mix of SP500 and International? I favor total market over S&P 500. Either one with international would work though. >SCHB > SCHG? Yes. Despite the name and recent returns, long term has tended to favor blend and especially value over growth. SCHB holds all. Factor investing starting points: * https://www.investopedia.com/terms/f/factor-investing.asp * https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) * https://www.cbsnews.com/news/the-black-hole-of-investing/ * But be aware that factor premiums can take a while to show up: https://www.reddit.com/r/Bogleheads/comments/1hmbwuw/what_every_longterm_investor_should_know_about/ * And from GwenRoll: https://www.reddit.com/r/ETFs/comments/1krd3fe/growth_does_no_one_know_what_the_hell_it_means/ >It just seemed like total market with a focus in SP500 to be a bit overweight in tech >that mix is for similar reasons as above but I also wanted to bet a bit heavier on quantum stocks. An uncompensated risk is one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ * https://www.northerntrust.com/middle-east/insights-research/2024/wealth-management/compensated-portfolio-risk >But not all risks are compensated with an expected return premium. * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ (Bold mine) >Uncompensated risk is very different; it is the risk specific to an individual company, **sector,** or country. And Tech revolutions: * https://www.pwlcapital.com/investing-technological-revolutions/ * https://rationalreminder.ca/podcast/123 * https://rationalreminder.ca/podcast/156 (climate change, clean energy related especially) * https://rationalreminder.ca/podcast/183 * https://rationalreminder.ca/podcast/185 (Thematic ETFs)
- I did not really have any reasoning behind the two for my Roth. It just seemed like total market with a focus in SP500 to be a bit overweight in tech. My 401k right now is only in SP500. Are you suggesting maybe a mix of SP500 and International? - that mix is for similar reasons as above but I also wanted to bet a bit heavier on quantum stocks. - SCHB > SCHG?
Comparing SCHD vs SPLG vs SCHB allocations for a taxable account >I am 26 and currently invest through both a Roth IRA and a taxable brokerage account at Schwab. My Roth is all S&P 500 and total stock market ETFs, and I will be maxing it out this year. Why both S&P 500 and total market? Also, going global can be beneficial to both returns and volatility. >In my taxable account, I started with a mix of individual stocks and ETFs, including SCHD (about $7k), SPLG, SCHB, and QTUM. Why this mix? >I am interested in the pros and cons of holding SCHD alongside broad market ETFs like SPLG and SCHB. Dividends are simply part of the total return, they come at the expense of share price appreciation. The act of a dividend is a taxable event, which may come at times where you don't need it. >How does SCHD’s long term performance and risk profile compare to SPLG and SCHB in a taxable account? This is before taxes are considered: https://testfol.io/?s=bg2wcYQbFlh >Is there a meaningful benefit to splitting between SPLG and SCHB compared to just holding one? No, as SCHB just about fully contains SPLG: https://www.etfrc.com/funds/overlap.php >Looking to hear others’ thoughts on how they approach balancing dividend focused ETFs with broad market funds in taxable accounts, especially for investors in their 20s with a long time horizon. With fractional share trading and no commissions being pretty common these days, I don't see the need for a dividend focus at any point in time. The best case I could make for them would be indirect factor exposure, but would recommend going for true factor focused funds instead of indirect exposure for that.
I really see no point to SCHD [https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1sT7Ev5URfwvaQHtTMTHMd](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1sT7Ev5URfwvaQHtTMTHMd) Is it a bit safer sure, but not by much Max draw down SCHD 21% vs SCHB 24% so yea its a bit safer , but not for the amount it underperforms over the long run SCHD is also less diversified only holding 100 stocks compared to SCHB 2500 appox.; I see no reason at any age to focus on "dividend investing " its all mental gymnastics . Focus on returns , if you want added stability just allocate into bonds
I am having a hard time deciding where to put my funds. Right now I have a Roth and an individual brokerage both through Schwab. My Roth is only SP500 and Total stock market and will be maxed out for the year. My normal brokerage account however is a mix of individual stocks and ETFs. When I first started, I put money into SCHD. It sits around 7k at the moment. The other ETFs are SPLG, SCHB, and QTUM. Should I convert the money from SCHD into SPLG AND SCHB? Should I scrap SCHB and do SPLG and SCHD? Or should I just put anything new into them and hold SCHD? I have about 35k in a HYSA (future car down payment and emergency fund). My concern is the amount of money in a HYSA along with SCHD is a bit too conservative for me at 26.
You on the right track. Max out the tax advantaged accounts then open a brokerage. You don’t have to know that much, just buy a broad based etf like VOO, VTI, SCHB, SPY or IVV. Dollar cost average what you can every month.
If you're looking to rebalance your portfolio and not do a ton of research, then I would put it all in index funds. Below are some that I like. VOO - probably the most commonly recommended one, its an S&P 500 fund SCHB - a broad market index fund covering (I think) 2500 companies SCHG - large cap growth fund VPU - a utilities index fund (I'm guessing the AI demand will keep energy demand high) To be honest, there are so many variations of the above and everyone has their own personal preference/mix. Look at expense ratios of the etfs and what the fund covers and invest where you feel comfortable. Trying to pick individual winners is hard enough for the pros, keep it simple and build your nest egg. Individual picks should be a relatively small percentage of your portfolio unless you really know what you are doing.
First is avoid debt. If you have high interest debt then investing is a fools errand. Second, the best investment for building wealth when “broke” is to acquire/obtain skills that will qualify you for higher paying employment. Trade school, certifications, college, etc. Third, with small starting investments you’ll only get the ball rolling after several years of continuous contributions. A $100 one time investment won’t amount to much. $100 per month will build up over a few years and start gaining steam. Fourth, invest in broad market ETFs (VOO or VT are decent starting points (or SPY, or SCHB, or ITOT, or …)) using an account with Fidelity, Schwab, or Vanguard. I believe these types of funds offer a simple means of achieving a good balance of risk and reward. Personal experience anecdote: I spent 20 months in 2023 & 2024 investing $150 per month, so $3,000 total, and at the end of those 20 months my investment was worth ~$3,225 (after first 10 months ($1,500) I was at ~$1,575). 7 months later that first $3,000 of investments is worth ~$3,350. In another 7 to 10 years, with no further additional investment, I can expect that it will be worth ~$6,700 (typical doubling rate of broad market ETFs). I’ve been fortunate that I can now afford to increase my contribution rate so I’m currently at $7,350 invested worth ~$7,850 (up ~$500, ~$350 of that is from the first $3,000 of investments).
> $1,500 for $75 daily market buy of $35 VOO, the other $40 is split between SPMO, SCHB, SCHD, SCHF, and SPYD Why are you buying both VOO and SCHB, which are almost identical? Why also a momentum version of US large caps? Why are you buying both SCHD and SPYD? They have little overlap but similar ideas. Why a focus on dividends given [dividend irrelevance] (https://www.investopedia.com/terms/d/dividendirrelevance.asp)? Why no emerging markets?
I've got a good amount in SCHB from tax loss harvesting and then another chunk in a private company that I worked at that has non-regular liquidity events. Can we go back to how your 40k portfolio was at an "ATH"?
Schwab doesn't support fractional shares, which is your problem. They keep their own etfs with low prices however, so you could buy something like SCHB. What I would recommend however is buying one of their target date funds: https://www.schwabassetmanagement.com/products/stir In addition to being a single fund that gives you everything you need, there's a $1 minimum buy and you can invest any arbitrary number of dollars above that limit.
The tech stocks already have higher returns growth futures baked into their current pricing. Unless you think you are smarter than the overall wisdom of the market I suggest just getting the overall market average return by buying low costs broad market ETFs such as VTI/ITOT/SCHB total US stock market ETFs and VXUS/IXUS international stock market ETFs. Yes, boring. But in investing boring is sometimes the best.
HYSA is good for short-term peace of mind, but your real wealth is built through time in the market. Since you said you’re okay with some risk and this isn’t money you *need*, I’d go 70–80% total market index (VTI, SCHB), 20–30% in T-Bills or a money market fund for liquidity. Stay boring, stay winning.
That’s the good thing about using a broad market index fund (like SCHB); you won’t lose it all in a down market. That’s why it is so often suggested over buying individual company stocks. For SCHB to lose all value the US market would have to cease existing…and that has much more dire implications (your money wouldn’t mean anything anymore anyway).