SCHD

Senior-Preference678

VOO and chill works if your only risk is market volatility, but not if the risk is political or currency instability. VOO = 100% U.S. large caps, so you’re fully tied to the U.S. economy and the dollar. If you actually want political-risk protection, diversification matters: - VOO (40%): U.S. growth core - VXUS (20%): global exposure outside the U.S. - GLDM / IAU (15%) – gold hedge - BIL / SHV (10%) – cash & liquidity - STIP / TIP (10%) – inflation-protected bonds - SCHD / JEPI (5%) – dividend income buffer That mix keeps upside exposure but cushions geopolitical shocks. Not financial advice, just risk management 101.

Senior-Preference678

VT is definitely a solid one ETF solution, globally diversified, 60% US and 40% international, covers nearly 9,000 stocks, and yields around 2%. But for real political-risk protection, it’s still 100% equity exposure. If the goal is to hedge instability, I’d still mix VT with: GLDM or IAU: inflation & crisis hedge BIL or SHV: cash-like stability STIP or TIP: inflation-protected bonds SCHD or JEPI: dividend income & lower volatility So maybe 60% VT + 40% hedges for a balance between growth and protection. Not financial advice, just fundamentals talking.

pizzasandcats

I would like to buy a luxury watch. I can afford it. However, I will likely have to wait 6 months to a year to actually purchase the watch. Maybe longer. I’d like to just park the funds in a separate brokerage account while I wait. However, I don’t mind taking some risk since it can wait. Rolling a couple of options in my head. I considered a lower-beta index ETF, something like SCHD. Another alternative is to just mimic a TDF allocation for say, 2027. Would consider a bond fund or even using the money (about $8k) to run some wheel strategies. I really don’t want to just have the cash sitting there in a MMF or HYSA since I’d rather not miss the opportunity cost of being totally out of the market than not miss the watch. All my serious savings/retirement is in global index ETFs. I’m an experienced investor just looking for some opinions!

dbasea

Nice mix, but there’s heavy large-cap overlap (RSP/SCHD/QQQM) and no small-cap or emerging exposure, so decide if those tilts fit your risk and consider either a simpler cap-weighted core (total US + total ex-US) or adding EM/bonds. Set target weights, write a short IPS with a yearly rebalance rule you can stick to, and if you want a checklist you can find more at mr-profit com.

SteevieJanowski

I’d ditch RSP and SCHD. If you don’t wanna use an S&P 500 index fund, I’d go w VUG to cover growth and SPYV or VTV to cover value. FNDX and FNDF have great track records if you want to mix in fundamental analysis ETFs, but their OER is a bit higher at 0.25% if you’re cost conscious.

Wilecoyote84

I'm in a similar position and have been transitioning to VYM. It has little to no exposure to the Mag 7, little tech, long track record of good returns and dividend. Better diversified over SCHD. imo. Also recently bought VYMI for a little international exposure.

Daily-Trader-247

Do ETFs less worries, more diversification. Depending on income needs there are much better choices then SCHD for income. SPYI was a good start

grammarsalad

1. I think it greatly depends. Living with your parents with few expenses? Maybe 1-3 months. Are you the only breadwinner in a family of 5? Maybe 1 year at least.  2. I put about 10% of my investments in XHLF for this exact reason in my brokerage. If you do put some aside to 'buy the dip', I suggest you have it in _something_ gaining you interest in the interim. On the other have, nothing wrong with dollar cost averaging into investments you feel confident in.  3. Depends. I have a traditional IRA, a Roth, and a brokerage each with different goals. My Roth is just GLDM, AMZN, and VGT, about equal shares of each. I should add VOO, and probably SCHD, but I don't have much in there ATM. The goal here is just growth with some preservation. My IRA is mostly dividend assets I believe in, including SCHD, though with some growth and preservation in there as well (even a bit of TQQQ for some spice). This will likely be my main source of income in retirement, and I'm really just focused on that. My brokerage is mixed, with individual stocks I believe in (e.g. AEM, AMAT) and high income yielding ETFs that I might lean on in hard economic times (e.g. QQQI).  But, this is just me. It's _essential_ you think about what you want out of these products before deciding how to invest.  4. I basically listen to Buffett and instigate stocks he has confidence in to see if they will work for me.  5. Real Estate if you have the money and patience to deal with tenants.

EmpathyFabrication

Had to look up the distributions for YM Tesla fund. Avg about $50 a month on an $850 investment in a fund that I have zero confidence in the managers to maintain the share price. Meanwhile buywrite TSLA $44k investment to collect $3k premium right now on the ATM 30DTE 442.5 call. I'll argue that all these stocks you mentioned (and all the stocks YM offers) are not really that good for doing a buywrite strategy. Maybe msft and goog if you want to own the stock. Compare YM distributions to premiums on boring stocks that have pretty low "risk of cratering." SCHD $2700 investment collect $15-50 premium on the ATM 30DTE 27 call. KO $7000 investment collect about $115 premium on the ATM 30DTE 71 call. Look at something with an awful spread like GSK. Way OTM 30 delta I can collect $70 for the 30DTE 46.5 call and I would invest $4500. Plus you collect a dividend on all these stocks and skip writing the call that month. You don't even have to do anything. Decent chance of capital appreciation on all these stocks.

arcademachin3

SCHD hasn’t been so good for me this year.

Etchasketch55

I've been with SCHD for a few years and recently added some JEPI to the mix. SCHD gives me steady growth while JEPI kicks out higher monthly income. Had to start with about $500K to hit close to your target. Not gonna lie, building that nest egg took me a decade of aggressive saving, but now it's pretty sweet watching the dividends roll in without touching the principal. Don't sleep on JEPI if you want that monthly payout.

Fapados

SCHD currently pays a 3.82% dividend. $2000 * 12 / 0.0382 = $628k

Fapados

SCHD currently pays a 3.82% dividend every 3 months. $2000 \* 3 / 0.0382 = $157k

Sea_Life4

SCHD

hymie-the-robot

compare your holdings to 100% VT and there is little difference in performance. also: SCHD + QQQM performs more or less like 100% SPY. regarding terminology, as *Investopedia* notes, a barbell is "a mix of high-risk and no-risk assets ... ignoring the mid-range of mildly risky assets." this is not the case with SCHD + QQQM. barbell assets typically are not highly correlated, also not the case here. RSP performs notably poorly in terms of risk vs return.

emussmell

This is actually a really well-thought-out portfolio 👏 You’ve done a great job blending growth, quality, and international diversification while keeping simplicity and balance. The barbell approach between QQQM and SCHD is smart — it captures momentum without leaning too heavy on tech. RSP also does an underrated job of mitigating top-heavy risk from the S&P 500, so nice call there. If I were to tweak anything, it’d just be small refinements: 1. Consider a small-cap or emerging markets slice (like AVUV or VWO, maybe 5–10%) to capture long-term factor diversification and global growth outside developed markets. 2. Think about tax efficiency and rebalancing frequency. SCHD throws off solid dividends, so if this is in a taxable account, just make sure that aligns with your tax strategy. 3. IDEV is fine, but VXUS or IXUS could give you slightly broader exposure if you ever want emerging markets automatically included. Overall though — simple, diversified, logical, and low-cost. This is the kind of setup most investors would benefit from sticking with for decades. Nicely done

Key-Boat-7519

If you want to retire in three years and keep principal for your kid, start de‑risking now by building a 3–5 year income bucket and letting the rest stay in stocks. What’s worked for me: estimate the Roth’s annual discretionary need, then park 2 years in short T‑bills or a rolling ladder and the next 3 in short/intermediate Treasuries or a TIPS ladder. Keep the equity sleeve broad (S&P 500) and, if you want smoother cash flow, add a slice of VYM or SCHD, knowing they’re still equities. Automate dividends/coupons into cash, rebalance annually or at 5% bands, and spend from the cash/Treasury bucket during downturns so you’re not forced to sell stocks. I use Vanguard’s Target Retirement Income for a simple 30/70 mix and Fidelity’s Treasury ladder tool for 5‑year rungs; for a slice of guaranteed yield in the fixed bucket, gainbridge.io’s fixed annuities have been a set‑and‑forget option. Bottom line: secure 3–5 years of cash flows now, let the rest compound, and refill the cash bucket on good years.

Mahmeuver

I’m 39 years old single with no kids, looking to start investing in the stock market. Due to bad spending habits, I have no savings and just started to have a different mindset about money and started to save and invest. My goal is long-term gains: 10 -15 years. I am in a third-world country and I work as a freelancer and I get paid in USD, however, my income in USD is small. I can invest on monthly basis around 150-200$ I started with physical gold and silver. And looking for a portfolio like this: SPLG. 20% SCHG. 20% VXUS. 20% SCHD. 15% ARKK. 5% Gold/silver. 20% With continuous investment with every paycheck based on this income split: Needs. 30% Wants. 20% Invest. 30% Cash. 20% Your advice and opinion are appreciated. Thanks in advance!

truautorepair000

Not index but best buys for me have been WPAY, SCHD, SCHG, FBTC, FUTY, and JEPQ

PidgeySlayer268

Bonds, also SCHD is a healthy mid point to mix in. I would do 60% S&P 500, 25% SCHD, %15 Bonds. Also, I prefer to buy actual bonds, not a fan of the bond ETFs.

Batboyo

SCHD?

Wooden_Buffalo_7475

Hello fellow traders! This has been a fun place to spend a lil $$$. Made sum losses. Made sum gains. But I've realized I can't remain exclusive to stocks in pennyland (which should've been obvious from the start). I'm diversifying elsewhere to assets with more bulk n steam (APLD, MP, ONDAS, SOFI, UAMY). Plus an ETF to start with (SCHD). Still holdin onto DFLI, PSTV, SCWO, MOBX n ATCH for a bit longer, as I believe they'll follow suit gradually. Have a nice weekend y'all!

Heres10bux

i would have thrown half into SCHD and half into any S&P 500 etf. and let it ride. ez returns

Hoffman_

This seems like a good place for somebody to tell me how SCHD is bad and I’m dumb for buying it.

alone-in-the-chat

SCHD what a 🤡!!

Sumif

Which brokerage? How do you access? Computer or phone? Which phone? Which browser? Have you ever been around someone often that also happens to research SCHD/dividend ETFs? Do you get trade confirmations to email? If that's a GMAIL, or perhaps you access on Chrome/Android, then it can see it if the email shows the trade. There are so many ways that Google can determine that you're interested in SCHD. It's insane. Companies can also track you across websites. Maybe you have some type of browser extension that sees it. Who knows? My guess is that you've directly or indirectly "told" Google that you're interested in or invest in SCHD. That said, you'd have to check the privacy policy of the brokerage.

anusbarber

We are a few years away before everyone ditches SCHD and climbs aboard the new thing everyone is talking about (SPMO might be it as its tripled in AUM the past year similar to SCHD). I prefer a base total market core to get total small/mid exposure and tilting singularly (no need for a value tilt AND growth tilt. just tilt one way. It largely simplifies moving forward. I prefer your taxable layout compared to the Roth. I too wanted to touch everything individually at a young age but eventually as life goes on you realize that simplification kind of trumps all. but thats perhaps just me.

MyGuitarTwerks

Not if you invest in the right ones. SCHD, MS, AGM, CUBE, IPAR. If you wait a few years it adds up in your portfolio if you keep reinvesting and adding to it. High yield dividends is what you're referring to. And i agree. Nav erosion in high yield dividends are terrible. Even though Yieldmax is holding up still with their return %, its still a massive risk which isnt like the other dividends. Dividends are good if you invest correctly.

Appropriate-Lock3999

SCHD in Roth - my only value fund that gives my Roth some sort of balance (I’ve considered dumping it…) Taxable low risk - I see VTI and VXUS as more diversified funds in both market cap and countries than my Roth funds that are 80% US large cap

USAFinTalk360

SCHD + VGT combo already covers a lot. Maybe just watch the overlap with SPMO, u r doing great for 25.

therealjerseytom

Why SCHD in your Roth? > I believe being lower growth / risk is smarter in my taxable account Why so? What's the financial goal of your taxable account. And how is being 100% equities "lower risk"? Just by virtue of not having the VGT position?

Timely_Sand_6162

I would still have 1/3rd in QQQ. Probably in your case - 1/3rd in VOO, SCHD and QQQ each.

Linda_Lin930

What are your go-to income-focused tickers these days? For me: SCHD, Realty Income, and some conservative exposure to PNW

JoJoPowers

SCHD, Maybe 30-40k in long dated spy puts.

realsilent7

I would diversify personally I think you have the right idea with VOO maybe some SCHD for dividends and growth or something along those lines. Also potentially an alternative asset like gold to hedge some risk. I agree having a lot of your net worth in two stocks can be risky if you’re not a Buffett who works on this all day. Speaking of buffet you may consider Berkshire stock as well which is like an etf in a way. Just throwing out some ideas. You can also consider a whole stock market fund as well from vanguard I forget the ticker symbols

norcalnatv

LT NVDA holder here. I've been moving into dividend payers for a while now (VOO, SCHD, DIVO QQQI, pretty standard group). Diversifying into S&P seems really logical. LTCG is a bitch, put those taxes aside at the time of sale.

Sweetycherryx

That’s a great place to be steady income, room to invest, and already thinking long-term. 👏 If you’re just getting started, skip the risky stuff like options for now. You’ll do better focusing on **broad index funds or ETFs** (like VOO, VTI, or SCHD) and automating your contributions. That $250–$500 every two weeks adds up fast when you stay consistent. Also, build a little **emergency fund** first ideally 3–6 months of expenses in a **high-yield savings account** so it’s safe but still earning something. You can check **BankTruth** to see which HYSAs are paying the best and most consistent rates right now while you work on paying off debt and building your investment plan.

theTrueLodge

I would look an ETF of some kind. Someone here recommended a world market one to hedge against volatility in the U.S. or any country. You’ll need to do your homework. Something like this might give you minimal risk - • 50% bonds (core intermediate-term, e.g. BND or AGG) • 10% short-term bonds or CDs (for near-term income stability) • 20% dividend/value stocks (e.g. SCHD or VYM) • 10% total-market or global equities (e.g. VTI or VT) • 5% inflation-protected bonds (TIPS) (e.g. SCHP or VTIP) • 5% cash or money-market fund (for immediate liquidity)

NotJebediahKerman

this terrifies me, have been planning on moving a small chunk of cash into VOO/SCHD and now... I feel a major correction is coming... I have nothing to base it off of. Just a bad feeling, and I was there when black monday hit. And my ignorance doesn't help either. Fuuuuuuuuuu

giraloco

The suggestions in this thread are pretty bad. You should diversify some of the SP500. SCHD for large US companies that are likely to be around in the long term and recover after periods of recession and inflation. SCHF international stocks in developed countries. USD money market pays a decent dividend. ISHG International short term bonds. Don't buy speculative assets like gold or BTC, that's gambling. Don't buy long term US bonds, the US Gov can no longer be trusted.

thunderwarm

Being optimistic on ai has really helped me. But at this point I’m taking profit. Not selling my original investment but taking it back to a smaller percentage. Also I’m not a margin trader. I bought some EU specific weighted funds at the beginning around “liberation day” thinking maybe they would outperform. Nope. Ended up putting it back in the S&P. I also really like dividend funds for wealth preservation. My wife and I have a portfolio that is more conservative. The SCHD dividend fund never pulls back as hard because it is companies with cash flow to pay dividends that do better in downturns. Those dividends really compound… but not as good as my other portfolio mostly for growth. The time horizon for the growth portfolio is far far out. The safer one is more of a short term discretionary savings strategy.

madrox1

SCHD is a steady eddy, not a growth stock like ones in the tech or AI cycle. Plus SCHD gives u dividend. It’s just what type of stock u are looking for.

ImLemonized

Dude WTF with 3m i would just put it in the ETF or some SCHD and chill.. you had money 99% of us dreams of

alone-in-the-chat

even moober like SCHD going down!!

Ancient_Sort5820

SCHD is such a rotted pos all those retard finfluencers who recommended it solely off the recommendations of others are really eating shit. If you’re going to be flat over the past 5 years may as well pay more than a lousy 3.7% dividend. So glad i sold out entirely 6 months ago.

EmpathyFabrication

Decent opportunity for SCHD here with the dip plus the bad sentiment from it being negative YTD

Lewisa12

SCHD lol

ReindeerTypical2538

SCHD. The cockroach of ETFs. We’ll allwwwaayyysss have reliable SCHD

mindmelder23

Dividend stocks aren’t very high just look at SCHD 1 year chart.

alone-in-the-chat

Wtf is wrong with SCHD?

Grindr_Master

Gold down, stock down, crypto down, SCHD down, Brkb down ITS OVER. ITS SO OVER. Circuit BREAKER COMING TO YOU SOON

VegasWorldwide

first, what's considered disaster? second, I think you will see the solid dividend stocks like KO, SCHD, T do very well as people move assets. Berkshire will probably get a nice boom too.

Comfortable_Yam_9391

SCHD is for old people that are shifting their assets to prioritize stability and more accurate annualized returns as they’re closer to retirement. FXAIX is a good choice, I personally buy BRKB for my “safe position” right now because I think the SPY is an overvalued shitcoin rn

leaning_on_a_wheel

0 SCHD would be best

RedToolsRCool

Way too much SCHD for 30yo, especially if this is a taxable account like you say. Get rid of SCHD during your accumulation years.

PashasMom

FXAIX is a great choice. If you want to replace SCHD with a value ETF, look at CGDV or FDRR.

Blazeitbro69420

You shouldn’t really focus on dividends until retirement or just when you want something stable. Something like QQQ or VOO is what you want if you’re young and want growth especially in a Roth IRA account. Then when you retire you can put that money into something like SCHD or JEPI (within your Roth IRA)and withdraw the dividends tax free. I mean there is more to it than just that, but that’s the basic run down on how I plan on doing it

therealjerseytom

Well why did you choose that SCHD position in the first place?

neonam11

Yea, I used to invest in QQQM, VOO, and SCHD monthly. I am going to take a break from QQQM for a while and use that money for BND and VXUS.

F0x_Gem-in-i

No problem cheif! Just be sure to be in the know when using them (or anyone really) technically its 'our' tenders 'we' gotta protect and make more of.. I learned a lot from browsing around on reddit. I have robinhood it started with one dollar. Somehow it's currently bouncing around $16-20 i buy crypto with that platform, but I wouldn't trust my roth with them. No offense to anybody. Robinhood does have 24hr mkt trading with more financial products.. but ..... Schwab and Fidelity have their own etfs.... SCHD , etc for schwab and FXAIX, etc for fidelity.... Also i believe Fidelity have etfs @ 0% fee with them directly though so something to think about...

arbitraryBlue

People on the SCHD are so committed to that shit. Like bro, just buy POET calls

speedlever

I don't personally plan to use just one asset. I plan to spread it around multiple cc ETFs in various sectors with expected good performance and nav retention plus CEFS, maybe some PBDC, QDVO, and whatever else I find interesting. In addition to sp500 funds and I'll probably keep a reduced presence in SCHD, hoping it fares better in the future than it has in 2025. I have too much in SCHD right now and it's been a drag in this bull market. But hey, it could be an interesting ride if you put $1 M in BTCI getting $250k+ per year income. 😸 Then again that might be too much like betting it all on red. 😇

juicytootnotfruit

I literally only hold it for the dividend. Once the last of my shares finally hits that 1 year mark I'm going to sit on it until it hits $13.50 again and sell. Then dump all that into FXAIX, SCHD, & DRGO. Then I wait to see if my other disappointing stock picks go up. You know the ones. Pfizer, Intel, Rivian, BP. Although I'm up on all of them this last week the market pushed my 💩 in. But it's ok I'm in this for the long haul. We could see Ford go as high as $13.55 in my lifetime.

Jericho3434

50% SGOV and 10% SCHD. Selling half SGOV and moving that into SCHD, VXUS, VTI.

Strange_Director_621

SCHD would only be when I’m IN retirement and I don’t want any risk and don’t need any growth and just want to retain wealth. Right now, I’m not in any dividend funds with the exception of a target growth fund via my employer (limited options) which has some allocation. If my plan works out, I will live off my 401k, 403b, pension, SS, other investments and then leave my IRA in a moderate risk fund to continue to grow as a safety net and I can leave it to my kids when I die if I don’t use it.

speedlever

I have a hefty sum currently in SCHD and am not impressed. Maybe it will resurrect itself with the reconstitution next year. Not sure I want to wait that long to find out. Even though SCHD has a very nice 11% dividend cagr, it will still take over 12 years to reach what qqqi is paying now, if it ever gets that high. Over the past year, SCHD has a negative 3% price change while qqqi has enjoyed a +6% price change and paying 4x the income. Food for thought. Right now SCHD is a drag on my portfolio (mostly in an IRA) and I'm strongly considering reducing my exposure there by 65% and refocusing that money on growth funds like qqqm and SPMO, etc.

Strange_Director_621

Sure you could but SCHD has a good track record since 2011. I’ve don’t math and I could make my 401k last indefinitely assuming 4% withdraw and of course, I get dividends. Obviously though, it won’t be my only source of income. Who knows though, things change and like you said, shares can always be sold off if needed.

Strange_Director_621

If you move it into something like SCHD at or slightly before retirement, you can potentially live off the dividends if you are thrifty enough.

arbitraryBlue

I occasionally see the SCHD subreddit and it's worse than boggleheads lol. Why dividend when 0DTE options exist?

speedlever

Certainly. If you bought QYLD or RYLD, then imo you bought stinkers. They are not properly structured to resist nav erosion and are destined for the dump. At least imo. I hold a number of cc ETFs from both NEOS and Goldman and have been quite happy with them. So far. I understand your angst regarding cc ETFs after your experience. I think JEPI and JEPQ began a more modern approach to cc ETF investing that was more sustainable. But imo, both NEOS and Goldman have improved on the formula. I sold my JP funds in favor of the NEOS and Goldman cc ETFs. And I did something I swore I would never do. I've never been a bitcoin fan and vowed to never touch that sector. But I can't deny that Bitcoin offers opportunities, regardless my resolve to steer clear. I watched an interview by one of the NEOS co-founders (either Garrett or Troy) where they were discussing their cc ETF for the Bitcoin sector, BTCI. I was impressed enough that I bought some. And I've been very happy with it so far. 🤷‍♂️ I only have about 15% in cc ETFs at the moment. But they have blown away SCHD, one of my core staples during this bull market. Unfortunately that's not saying much since SCHD has been so flat this year. 😬

InnerCircleTI

But with good dividend payment. SCHD is not an ETF that is going to rip while the market is ripping… It is not performed well over the last few years, but it is a top performer over the last 10 years in its segment

Opposite-Control8682

VOO, VT and SCHD are the best

GAV17

It's actually hard to make a recomendation without knowing you, but I would say look at what vanguard does with their 2025 target date fund (for people hitting retirement now). https://investor.vanguard.com/investment-products/mutual-funds/profile/vttvx 50/50 stocks/bonds. It's also what the 4% withdrawal rate mantra comes from, a 50/50 portfolio with a time horizon of 25/30 years. My general recommendation for retirement would be something like 50% VT and 50% BND or the equivalent mutual funds. With 1 years or 2 in a HYSA, T-Bills, etc. Not a bad idea to always get a 2nd opinion if you are unsure about your advisor. I personally would no bet on individual stocks, if you are looking for healthy dividends or something like that look at SCHD.

MoistMaker_69420

Nah just start DCAing into SCHD instead.

bank_truth

Dividend ETFs can also quietly shape investor behavior. When people buy SCHD or VYM, they tend to hold longer and reinvest automatically. With individual stocks, there’s more temptation to sell when prices dip or chase the next hot name. The math might favor a handpicked list some years, but behavior often ruins that edge.

seggsisoverrated

yea lol if folks here are too concerned r/bogleheads welcomes them with that $SCHD 1% annual return with a few cents as dividends… i mean not bad they can stack some noodles and armour treet…

Working-Annual7103

VOO 33%, MSFT 22%, SCHD 10% About 25% is split between SES and RR and they have been Huge winners for me, like over 100% It sounds like I should hold though and trim my losers. Thank you for your advice :)

Working-Annual7103

VOO 33%, MSFT 22%, SCHD 10% About 25% is split between SES and RR and they have been Huge winners for me, like over 100% It sounds like I should hold though and trim my losers. Thank you for your advice :)

jdav0808

SCHD doesn’t have nearly the growth potential as an S&P 500 fund just as an example. The purpose of SCHD is preserving capital while paying a dividend. It does have some growth potential. If you look at SCHD over the past year the return is -2.48% while paying an about 4% dividend. If you look at VOO it has returned about 18% with about a 1.1% dividend. The 5 year numbers are 48% gain for SCHD and 100% gain for VOO. When you are a young investor compound interest is your very best friend. You will be missing out on a ton of growth investing in SCHD at 20 years old. Will there be years over the next 40 where SCHD will outperform? Sure. Don’t get me wrong, SCHD is a great fund. It definitely depends on what stage of life you are in. Makes much more sense for me (51) than it does for someone who is 20 as I am looking for capital preservation so I am not as open to market fluctuations. You need to approach the finish line before you take this approach. The caveat here is if someone who is 20 has a large inheritance or for some reason has life altering money. Then by all means SCHD is a good option. Please research compound interest.

bootythrowaway69

Please ELI5 why $SCHD is not needed for young investors, but better suited for older investors. I know $SCHD is a steady dividend stock giving 4% annually, but I don’t understand the reasoning for the statement above.

alone-in-the-chat

SCHD?

jdav0808

You are very young which is awesome that you are starting. You don’t need SCHD at your age. I’m 51 and own SCHD, better suited. Just put all your money in VOO, VTI or VT. Add whenever you can, repeat for 40 years. Max out a Roth IRA if possible. You will be happy with your 20 year old self.

Purple_Bearkat

Being good and keeping part of my portfolio in SCHD is getting harder to do.

cdude

Why is the $8k in FXAIX but the $46k in VOO, which is the same index? This is inside a retirement account so the tax inefficiency of capital gains distribution of mutual funds is moot. Keep it simple. Since you want growth, skip SCHD and just stick with one growth index fund. And since you have Fidelity, consider their Zero funds instead, like FNILX or FZROX. The amount to convert depends on your taxable income. If you have plenty of room in the 12% bracket and you have time, then convert only up to the top of the bracket. If you're solidly in the 22% bracket then there's not much tax savings left so you might as well use up the 22% and 24%.

F0x_Gem-in-i

For dividends? You meant JEPQ/JEPI/SCHD and many others....... Not a penny stock.

PlentyArmy2411

Fuck it, im gonna sell the rest of my SCHD and buy UNH shares

NotOnApprovedList

Look, we know there is a difference between insurance and investment. But OP's father may have been talked into something that wasn't that great a fit even for OP's father at the time it was sold. Due to lack of financial knowledge on the father's part or perhaps being susceptible to sales tactics. I have sympathy because my parents are relying on one fund that they put into a vehicle that isn't giving them appreciable returns. Also I discovered this year as I was getting into investing, that the thing I thought was a normal retirement mutual fund is actually more like a fake pension, a locked-up annuity. I was never given a choice on this. The amount is not insubstantial, but the monthly payout will be crap as inflation increases. I don't have control over what the annuity invests in either. So if I want to take what would traditionally be put into bonds and divvy it up with some going into SCHD, well I'm screwed.

DatZ_Man

Voo is much better than schd for long term holdings. You'll minimize your taxes within a year with VOO. SCHD you're paying short term taxes every 3 months.

Aevykin

SCHD is hot garbo if you’re under 55. If you’re gonna index, VOO. If you’re about to retire and want to play it safe with an income stream, then SCHD is okay.

YYM7

I view this as a pure number game. In the past 10 years VOO gives about 290% return while SCHD gives 250%. Both numbers includes dividend reinvest. The real difference is slightly more in favor for VOO, assuming you didn't sell any, due to tax.  I wouldn't call this different huge but it's significant. So for me, as long as I am OK with the higher volatility, I will go with VOO. This is generally true when you don't plan retirement soon. Yes I understand past perf does not equal future perf. But for large blend ETF like VOO and SCHD, past 10yr perf is the best simple metric you can look at. I don't see there is a better single metric. 

Pick-Dizzy

VOO to grow your wealth. SCHD to get cash flow. Still building? Go VOO. Need income now? Go SCHD.

johnPermanente

The thing with SCHD is that *you* don't control when they "sell" your shares. IMHO that kind of ruins the point of individual investing. Don't get me wrong, I like it when my dividends come in, but I like the concentration in stocks in something like VOO or SPMO than SCHD. For me, the novelty of dividends wears off pretty quick.

Pls_Dont_PM_Titties

Don't go SCHD if you're young and expecting it to compound super hard. It'll grow.... but the growth is super minimal compared to something like VOO and you'll miss out on a lot of growth. The upside of SCHD is the consistent dividend + a smaller amount of growth  TL;DR (very bastardized): VOO = long term growth, broader market exposure. Beats SCHD in a bull market anyday. SCHD = long term consistent dividend payment, "quality" holdings. Safer, but at the cost of growth. Probably only beats VOO in bear market.  I'd go VOO over SCHD unless you're nearing retirement or want some defensive holdings if you're feeling bearish.

CeoIanGodfrey

You can do a lot better with your $100k. Take a look at VUG, VOOG, QQQ, SCHD, and HUT. These will help you get a way better return on your money. At a minimum, look at SPY. It's not rocket science, just math. Look at any of the above mentioned ETF's and they will speak for themselves. Go forth and do well, friend! IG

version-two

What’s SCHD divy on $1MM ?

therobshow

Dump it all into SCHD. Live of divy, never work again. You made it. 

EAS893

See, the problem with a direct "tilt" like that though is that you end up underweighting the top of the market (note: I haven't looked at the exact holdings of AVGE). In the world we currently live in where like 10 stocks make up more than a third of the S&P 500, market performance is VERY heavily tied to the performance of just a few companies. The idea of the portfolio construction I was proposing was to capture those players using MGK but then for the REST of the portfolio, go all in on value + quality (SCHD and SCHY probably aren't the purest way to approximate that, but they do align with the idea). Of course by doing that you create a "barbell" that is heavy at the top ((MGK) and heavy at the "bottom" (SCHD + SCHY) (in terms of valuation multiples), so what gets left out here is the "middle" of the market (i.e. large (but not mega) and mid cap growth). Any kind of active management will have some kind of tilt. The question is what. My idea was to primarily go after value (with quality to avoid value traps) but hedge the idea that the top players continue to dominate with a position in MGK.

evilmaus

VT/BNDW Also tossing the odd leftover change into SCHD, but I lack conviction in that approach.

zombiemakron

Congrats, but maybe put some of that in something safe like SCHG or SCHD. I remember the good ole days when we had millionaires made from companies like PLUG MVIS TLRY PTON AMC, that lost it all.

taxotere

I think you patronize a bit, I do know the answer, and have done years of reading both in a technical and theory level and don't want to waste either of our time. I really don't get where you're going with this, dividends in 10-Q/Ks are (outflows). I am aware of the dividend irrelevance to future stock valuations, as well as its assumptions. Don't think divvies are free money, am aware of the broker's adjustment of stock price on the ex-div date and had all-world accumulating funds for years before switching to their distributing versions and splitting 2/3 of my growth bet to SCHD to get some dopamine every 3 months. It's a decision of conscient preference, not ignorance. After all, we're all talking about total return, so how one gets it is their preference, most important is to stay the course and if this means sacrificing some growth *potential* for emotional support...so be it.