SCHY
Schwab International Dividend Equity ETF
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Portfolio Review and Strategy in Times of Uncertainty - Seeking Advice
VOO vs. SCHD (or SCHY) for long term growth.
Are international stocks like VIGI subject to NRA WHT
Facebook/Meta "fair value estimate" at Morningstar is 400/share.
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VYM and VYMI are more volatile than SCHD and SCHY.
SCHY, SCHE, and GdX. Simple as that. Emerging markets and gold stocks will do well.
By no means comprehensive but I can say SCHY and BNDW are the only tickers that get borrowed from my portfolio over years of being part of the program. I get shares loaned out probably once a week from one or the other. It probably helps to have several hundred shares.
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.
I have decent positions in Roch, Novartis, SCHY, and LYB to name few
You got it. Buy funds like SCHD, VOO, IWM, VUG, VTI, SCHY in your retirement accounts. Go look at morningstar to compare them. Reinvest the dividends through a DRIP. Don't go crazy picking individual stocks, 4-5% max exposure, and don't play options. Diversification is important, invest new capital regularly into what you've got (dollar cost averaging). Then leave it alone, literally for decades. What you're getting by hiring is someone to do that for you. They'll spread your capital out into a bunch of different ETFs (20-30) that are each slightly different, some international and bond funds and pay them 1% for the privilege. They will take things to the next level with tax loss harvesting and rebalancing. It's all automated with them, it's not like you're going to get a lot of hand holding. But you can do it yourself. You're getting it. It's not hard. (I have a high 7 figure retirement account that's all self directed that just took patience, a little bit of trial and error and the occasional course correction. There was a bit of luck in there too.) You're young enough to make some mistakes and it's not going to kill your account. Courage!
Exactly why I like SCHY and VYMI
Fair enough. This assumes you already hold a US specific ETF like a VOO or VTI, leaving only the VXUS part of VT out. I would compare VXUS against a three fund portfolio of SCHY, VYMI, and IDMO. A lot of people seem to dislike how ex-US VT is and tend to have 80% in VOO/VTI and 20% in VXUS/VEA. I was hoping to show an alternative to that. I think that my alternative is pretty performant while minimizing drawdowns. Again, I want to show people that there are options out there that are well worth a couple extra basis points in expense ratio and will more than pay for themselves.
Why a dividend focused ETF? VXUS is a good total foreign market fund, if you specifically want to focus on dividends what I really don't see the point of doing there is SCHY, but I would just go with VXUS what does contain dividend paying stocks as well as growth stocks because it contains everything
I do not have a Roth IRA as I'm on permanent disability... I only have a taxable account which I add to monthly... I have VOO, QQQ, SCHD, NVDA, O, and a host of other high dividend funds (JEPQ, FEPI, SCHY, GPIX, etc).. I also have another account called savings where I have a ton of SGOV which is a short-term bond fund (basically where your bank keeps its money that it takes from you)
Core account: VXUS, VTI, BNDW Fluff: SCHD, SCHY, O, REET, BRK.B, FXE, FXF
Don’t invest all of it, try to DCA (dollar cost average) $10k or $20k a month. Broad and low cost ETFs are always a safe bet, so VTI or VOO would be strong options as a core holding. I am 27 and like holding exclusive growth and value funds. I use SCHG for growth and a mix of DGRO, SCHD, SCHY, and VYMI for value and international value. Of course, do your own research. Figure out your own risk tolerance (THIS IS VERY IMPORTANT). Some of my friends lost an arm and leg during April because their nerves wore weak. I help on and have since recovered thanks to my value holdings calming me down. To each their own.
You and I are sharing four holdings. Instead of VXUS, I just do VT to cover my bases, and I don't mess with REITs anymore, but otherwise I'm in that same boat holding FXF, FXE, SCHY, and BNDW. I was holding FXY for a bit there, then realized Japan is probably just going to keep printing money, so they'll probably be one of the few countries sure to decline against us.
I hold the following: * VXUS (ex-US equities passively managed index etf) * BNDW (ex-US bonds passively managed index etf) * REET (ex-US REITS managed index etf, excludes development firms and only includes REITs that hold real estate) * FXE (Synonymous with holding Euros, pays a dividend) * FXF (Synonymous with holding Swiss Francs, no dividend) * SCHY (Schwab international high dividend yield index etf) Out of those, VXUS, BNDW, SCHY are my largest ex-US holdings. The rest represent <2% positions in my portfolio.
I’ve had a lot of cash since March. I’m reluctant to invest at these levels under this president, but I recognize that short term interest rates will soon start coming down. As a result I’m shifting small amounts to global bond funds like BINC, preference share funds like PFFA, and international funds like SCHY, IVDO and VEA. I’m retired so I’m trying to generate income from less US centric assets.
Totally agree, I just went in 10-15% with 50-50 VGLT/EDV about a month ago in retirement accounts. I only have 1 months expenses emergency fund and consider it a last line of defence until I can get the cash savings up. 10% didn't seem to hurt portfolio sharpe very much over the long term. Since you are on leverage it seems like a good play as well. It took a lot to get me to do 5% across SCHF/SCHY and now I'm starting to wonder if I should have done more. My whole adult life international has been dogshit.
Right as covid was breaking the news, I dumped about 1k into PFE and a couple other med stocks. I took profit and started investing off the "covid fatigue" and threw the earnings at hotels and resort stocks and a couple other vacation companies. Turned 1k into 20k before tax and used that money to buy a travel trailer in 2022. The big risk was that it was literally half my emergency fund (and most of the wealth I had) at the time 💀 Call me a bear, but right now, I am currently sitting on about 160k in cash between my 401k, HSA, and Roth IRA (which represents a little over 90% of their total values). I don't trust the current market and pulled out when the SPY recovered to 570 following the tariff slump to 480. I currently have GTC orders for SCHD and SCHY at $22 and $23 a share respectively in both my HSA and Roth IRA for roughly 18k total. If those execute, that's when I'll re-enter half my 401k into the market. Until then, I choose to wait out the current administration or until such time as stability returns to our government and earn 4% on my money. April taught me my risk tolerance is weaponized stupidity and uncertainty. I keep an eye on the news and markets, and I'll adjust my thesis as needed. But for now, this is my course.
I moved my SP500 over to SCHF and SCHY (Schwab International Equity and dividend indexes) back in February. Those have both done well.
There are two parts to your problem: 1. You re buying ETF without understanding what they are invested in. So you have multiples funds that are basically identical. 2. You are letting your fear of taxes to stop you from taking action. As to taxes the solution to the problem is to estimate your taxes. The IRS has instructions on how to do that on their web site. Basically you decide what you want to sell then start calculating what the tax bill will be. Once you know what the bill will be You can sell the asset and set some of the money asside in a savings account. Or you can pay the money now to the IRS. Then in april when you know what all of prior years numbers are you calbulcate the final bill.. If your estimate was right you owe no additional money. iF you estimate is low you pay a little more, If you payed too much you get a refund You might want to work with a tax professional to fluid you through the process. Then all you have to do is sell the asset, set money aside for the tax, and then reinvest the excess money or spend the money to cover living expenses. As to ETF they have assets they hold for you. So you need to know what it is holding before you buy. What you want is each ETF being invested in different assets. That way if an economic shift occurs some business may have problems were others will not. So you might have one or two that won't be performing well. For example in my Roth I have SCHG, QQQI, PBDC, ARDC, SCHD, SCHY, fagix. One is a bond fund one is aa growth fund, one generates cash from trading activity know as covered calls, on invest in companies that pay a high yield, one yield growth fund and one international fund. and one fund that invests in loan obligations. The dividends from these investments are currently generating 20K of cash a year. Which is all reinvested. Since it is a roth I can buy and sell without paying tax. hopefully when I reach age 60 it will generate enough cash to pay all of my bills.
SCHY. Largely because I’d already have FNDB or SCHB (strongly favoring the former). I like the fundamentals on all three. As an aside, I don’t like SCHD’s new emphasis on utilities for some reason but that’s just on personal preference that could change
Not interested in opinions/covered call ETFs. I like SCHF, SCHY and SCHE instead of VXUS, lower fees and I can allocate the way I want to emerging markets, etc.
Interesting mix. I can definitely see why you’ve gone this route because I’ve done the same using a very different approach. With that said, you can probably get the same result from a tighter selection. If I may offer: it might be controversial to say cuz Vanguard is popular, but SCHY is possibly a stronger choice than either VEA or VGK over the long run. Perhaps stronger than least some of the others as well. It’s a bit more expensive at 0.08%, but it offers coverage of every ex-us region, similar to VEA. Pays a higher dividend, than both. And has stronger fundamentals plus a bit lower volatility than both. I’m not a Schwab shill so to offer another potentially solid option could be TLTD. Unfortunately, the expense on this one is much higher. However, Seems to offer fundamentals as strong as SCHY. Also offers a higher div, wide regional coverage. To cover small and mid-cap with rhe same qualities, FDNC pairs well any choice imo. For regions you feel underweight in, specific etf like AFK and FBRL might be worth a look.
Go look at IDVO. It is the international version of DIVO, and it has performed better than SCHY and VYMI at the same time it has a substantially higher dividend payout.
I'm older but I will be looking at dividend paying companies which are traditionally slower growing and less volatile. SCHD for US and SCHY for global ex-US. Heavier weighted in SCHY since I think US securities are going to be flat to down over the next years. Also some tech, but I will wait for tech to drop even from here.
Bad for the US overall. Money is leaving the US. I hate to give advice, I'm in my mid-50's. Looking back I wish I'd bought SPY or VOO every week and ignored it all. I would be so much further ahead. I worry that the global financial order is changing and that we're going to see much lower markets, much lower profits, bankruptcies. I'm looking at SCHY for example. These tarrifs, the new prices haven't even reached the consumer yet and we are pretending it's settled.
Unlike a lot of people in here, I would say this is probably the best day to start. You’re gonna be able to dollar cost average into some awesome stocks at like a rock bottom prices And you really don’t have to get fancy and you really don’t have to worry about if it drops more because you’re DCAing in. Grab SPY , SCHD, SCHG , SCHY And just set a buy schedule You have Growth, blue chips , international, broad market. Get yourself educated learn about options. You can do like a wheel strategy set limit orders , The sooner you buy the quicker it starts compounding I started an account for my son because he was in the military. He didn’t really have much but I wanted to make sure he was OK when I was gone. I mean, he’s gonna be getting all my money which is quite a bit, but I wanted him to have something of his own . I threw about $300 a month into broad market funds about 10 years now That $300 into each one which was about 1200 a month is worth almost a quarter million right now . And it’s growing just off the interest by about 25,000 to 35,000 a year along with the money I’m putting in
It was the first thing that came out when I was typing up the post. Realistically would probably do 50/30/20. VOO/SCHD/SCHY.
Not a stock, but SCHY. 'Doing well' being a relative term.
VXUS is vanguard’s ex-US fund. VEU is their Europe only fund. SCHY is Schwab’s ex-US dividend fund if you’re into that. Only you can decide if investing outside the USA is right for you or if you prefer the domestic stock market.
No loss SCHD 65% SCHY 15% TLT 20%
Or IDEV, SCHY, VEA, SCHF, etc...I think they wanted country-specific ETFs though like FCHL, INDA, EWJ, or EWU. i may be mistaken. VXUS is a good and very broad option if they want maximum exposure.
I'm buying three things right now: Fixed Income (IGSB) Covered Calls (JEPI /JEPQ) International Dividend (SCHY)
Keep what you have and add in the diversification. I would keep adding to what you have. Diversification is usually a good move. For my split, I've been adding SCHY to my monthly DCA because it is the international equivalent to SCHD and seems fairly solid for longterm.
I protect my mind and portfolio with balance. I run SCHD at 66% SCHY at 14% TLT at 20% I look FORWARD to dripping years and years of my portfolio in a bear market. Keep a large enough cash reserve so dipping into your dividends is a last resort. Recency bias has us gazing to hard at growth stocks..
Any foreign ETFs or stocks that you like? I've mainly been buying VIGI, SCHY and AVDV lately. I've got some VXUS but haven't added to it in a long time.
It really depends on your risk tolerance. Maany that post these questions only look toUS bonds or other similar investments. Mainly because they extremely risk avers. And their voice appear to dominate ether discussions. Also many think the emergency fund must be highly liquid because the assumption is that you need the money right now, But a credit card is a good alternative because you can get a lot of cash very quickly with it. So after you pay with the credit card you have time to liquidate assets to pay off the card in full within a couple of weeks. Index fundsVOO and VTI make a create emergency asset in this situation. And they are most tax efficient of all of your options. There are people out there with several years of money in a taxable account for this reason. And these funds typically have an average realtor n of 10% which is vastly higher than most bond, money market, CDs. Many are aware of teh risks of index funds and already use them for their retirment savings. But once you reach about 5 years of savings you should consider adding passive income to your account. Now passive income does include US bonds and money market accounts. But it can also include cooperate bonds that pay a higher rate. SCHY and USHY are to such funds that payabout 7%Tehre are. But with stock dividends you could do much better. Some comapnies actually return a small portion of there proffict to investors in the form of dividend cash oayments, There are companies out there that have for decades Dividend Aristocrat stocks are companes that have been paying a dividned for at least 20 years (some for 100 years) and typically increase the dividend a little bit almost every year.A fund like NOBL invests in these copnaies The yield isn't great 2% but it is very stable. But there are other funds like BIZD that invest in difffertn companes and pay out 10% for about 11 yers. PBDC is similar but only appears a couple of years ago at 9%. There are a largenumber of funds trough 10% to choose from. With such a high reliable yield you could easily get several thousand dollars a month of income fringe your investments. I started converting index fund and stock growth assets in my emergency fund several years ago in dividned producing assets. I now have 4000 a month of income with several years of money in index funds or growth stocks. I retired at age 55. The passive income covers all of my living expense and if I have a large unexpected expense I have my credit card and index funds available. I don't expect to need social security until age 70.
You should have a minimum of one tax deferred retirement account and a least one passive income account. Retirement account ts are great but it shard to access the money until year reach age 60. It won't help you if you loose your job or have to take an extended period of time off to recover from an injury. Many recumbent a 6 month emergency fund. Not mucbbhelp if your are unemployed for more than a year. In comparison a passive income fund invests in companies that pay a dividned or in corporate or government bands. Basically instead of inviting fro growth you invest for income. Right now I am not working and have an income of 4000 a month. Enough money to cover all of my living expense. And I don't have to sell any stock to get the money. And the income will last indefinitely. You can use ETF like SPYI (11% yield), BIZD 10% yield, PFF 6%, SCYB 7% , SCHY 4.5%, and SCHD 3.6%. And there are many others. Your passive income account must be in a taxable brokerage account with no restrictions on the access to the funds. So you will have to pay tax on the income. Now many worry about taxers. But the government only taxes a portion of the income. So it you can set the money asside in money market account. And then when you need to pay the tax you have money to pay it. Additionally if you loose your job your only income might be your passive income. The IRS allows you to have an income 47,500 and they won't charge you any tax on it. IF you make a little more than that then you pay a little bit of tax. For my self I have calculated that if I had an income of 100,000 my tax would be about 10,000. Leaving me with 90,000 to spend. You can slowly build it up over time just like you do with Roth or 401K accounts. And reinvest the dividneds to help the account grow. Once you reach your target income level you can reinvest the dividends in index fund like VOO or VTI. Thes pay a minimal dividend so minimal additional tax. SCHG and QQQM are two growth funds withe lowest dividned I have seen at about 0.6%. If you have an unexpected expense that exceeds your passive income you can sell the growth funds to get the additional money. You can save several yours of money in growth fund and have minimal impact on your toes.
You are comparing an ETF to a mutual fund. What you want is SCHF. You may also consider SCHY for intl dividends. I would use a separate ETF for emerging markets which is a different type of risk. I bought some FNDE.
SP500 is heavily weighted in tech so it can be volatile if the AI bubble pops. Keep it but you may want to put more weight in non-tech. I use SCHD (US div equity) SCHY (intl div equity) SCHF (intl equity developed countries). Hopefully those will be more stable in a downturn and will keep up with inflation in the long term. Some money in cash (money market funds, CDs, short term treasuries) is also good to have when there is uncertainty. How much to diversify depends on your age and future plans.
$O Realty Income Corp is currently yielding 5.83%. But you probably don’t want to go all in on real estate so there are some other dividend yielding ETFs that could help balance you out ($LVHD at 4.17%, $SCHY at 4.46%, $VYMI at 4.68%, etc.). You could also invest in a more moderate dividend yielding ETF (something in the 2-3.5% range) and sell covered calls to try and squeeze some more out of it but the option premiums would be taxed at a higher rate than the dividend distributions.
I've made some dumb moves over the past few years. Sold out of AMZN for a 15k gain which would now be 40k+. Bought trash like VALE, F, Polestar. Bought SCHY instead of just more SWPPX (S&P). Lots of dumb. But all the dumbassery has been erased by holding 420 META shares since the low 100s/share bought in 2022. I have a solid salary, but living in hyper-expensive NYC never gives you a break so that META has brought me some welcome piece of mind.
For fire you want income. CD and municipal bonds have the lowest yileld so you would need a very large amount of money to invest to cover your living expenses. Bonds are not much better and don't keep up with inflation. You need a yield of 6% to safely stay ahead of inflation. The only way to get the yield you need is to invest in dividend stocks. There are also a lot of companies with yields around the 5 to 6% range. AT&T and Verizon are two good ones SCHY is an international dividend stocks with a yield of close to 5% There are also ETF that invest in preferred stocks like PFF, and PFFD each with a yield of 6%. And then there are covered call funds. A covered call is a trading stratagy that has been in use for about 40 years successfully. But only recently have covered call ETF become available. KNG produces a dividned of 9%, KEPII 7%, and JEPQ 10%, DIVO4.7% Some offer dividends of 20%. You can creat o mix of funds to target any yield you want. And you could add some corporate bonds bond or lower yield but long term very stable businesses Dividneds are generally less risky than index funds like S&P500 which can gain or loos 20 to 30% in a single year. During a major market correction or recession the average dividned payment only looses about 2%. During the pandemic I saw my portfolio loos e 50% of it value but the dividneds kept coming in. After the pandemic the share price recovered and the dividend payment continued. For a fire account I think it is best to have passive income equal to grater than your living expenses and reinvest anything you don't spend. Never sell you dividend stocks. You should also have some index funds for growth .You can periodically harvest the growth to increase your dividned income to compensate for inflation. Or if you get a big unexpected bill you can sell your growth funds to cover the expense. I currently have 4000 a month of dividned income with a large amount still in index funds for growth. .
SCHD is a good fund bit is about 3.6%SCHY is an international version yields 6%
You could use a mix of SCHD 3.6%, SCHY 5%, PBDC 9I% and JEPI 7%. The percent number id the dividend. . All have low volatility. I consider all of these to be safe enough for your purpose.
After several years, I’ve turned away from dividend investing. The dividend eats the share prices too much. It’s definitely not free money. PFFD lost 22% of its value in three years (I used to invest in preferred). SCHY is down 9% in three years. The market is up 25%. If you want steady income - SGOV pays 5% with zero risk of equity value.
A new Roth will only grow as fast as you put the money in. The maximum deposit limit is $7000.. but you can use an investment to greatly increase teh amount of money depoisteied into the account legally by using a dividend fund. You could start out with a high dividend coved call fund SPYI for example your fund will quickly stat liking out dividends which you can reinvest. by the time teh fund hits $100,000 invested the dividends will total $12,000 a year plus your personal deposit of 7000. That 19,000 a year cash deposits. At this point you could turn off the automatic and freeze sPYI at 100K. then reinvest the dividned s in other funds to deversify your dividend income and add one or two capital gains growth funds. For example you could for dividneds add SCHD, SCHY, PFFD and PBDC for dividends. For capital gains you you can use SCHG or QQQM. These will grow much faster than S&P500 index funds because they are capital gains specific with almost no dividend (0.6%). When you are ready to retie the fund should have substantial amount invested in growth fund plus dividend funds. Then when you retir only spend the dividends income and if you don't spend all of it reinvest the excess. If you need need extra income for an unexpected expense sell some of the gowth funds. to cover the expense. Or if necessary to compensate for inflation you can sell the growth fund and use the money to grow your dividend income.
Index fund a good general performers best suited for retirement accounts. They are not so good for taxable accounts. The index fund has a mix of growth and stable companies. As a result its dividend is greatly reduced and any growth it has is less than you would get with growth specific fund. For a taxable account you want to focus on dividend income. Enough to cover your living expenses. That way if you loose your job you will have long term passive income to caryry you through until you get a new job. have 6 months of case on hand for short term emergencies. These two portions the taxable account will help stabilize your life. These will generate taxes which you need to manage not avoid. people go crazy finding ways to avoid dividend taxes. This can lead to investment strategies that are more safe then useful. you also need a long term savings preferably with minimal tax. if you invest in growth stock that don't pay a dividen you won' pay tax on the savings. And since they are growth stock you savings will grow over time. For example if you invested in TESLA 6 years ago your initial investment wouldn't abbe been very large but today it would be worth 22 times your initial investment. Any would have paid zero tax during those 6 years. You can also use index funds. the low dividend would minimize taxes. But you get less growth. over teh last 6 year the S&P500 index has only doubled. A lot less growth than TSLY. a much getter choice is SCHG or QQQ. SCHG is 3 times larger thanks was 6 years ago QQQ is 6 times larger. And SCHD and QQQ have a dividend of about 0.5% while the S&P500 is 1.3%. If you use your taxable account this way you will have long term passive income, and emergency fund, and enough long term savings you can liquidate if needed to an expense that your dividend or emergency fund can handle. you won't get that with just he S&P500. Good dividend funds for you could use passive income are SCHD, SCHY, PBDC, SPYI, FUTY, FAGIX
That looks really good as well. Without intruding, may I ask how many years away your target for retirement is? The only reason I ask is to get an idea of your bond percentage compared to mine. I actually dropped my % down. I'm about 10-15 years out, myself. SCHD: 30% DGRO: 20% JEPI: 15% JEPQ: 10% DIVO: 10% VNQ: 10% SCHY: 5% Roth IRA: FSKAX: 70% FSPSX: 25% FXNAX: 5%
Yeah, these high valuations make me nervous. When the market hit highs like this, I buy VALUE over growth, as well as international . I'm going with BRK.B, SCHD, AVNV, and maybe AVUV and even SCHY for now. When the market is in correction, I go all in with aggressive growth.
10% each; SSO SPXL QLD TECL GLD TLT SCHD SCHY HODL ANGL sprinkle in some long dated spy puts in case everything shits the bed while I’m Balls deep in leveraged etfs
Late 30s. This is the core of my portfolio, I also trade options (70% of those gains goes into my Dividend Portfolio and 30% back into plays. Aiming for "I have the finances to retire when I want" in 10 years. | **Portfolio** | **ETF/Fund** | **Percentage** | |---------------------|---------------|----------------| | **Dividend Portfolio** | SCHD | 30% | | | DGRO | 25% | | | JEPI | 15% | | | JEPQ | 10% | | | DIVO | 10% | | | SCHY | 10% | | | VNQ | 10% | | **Roth IRA** | FSKAX | 60% | | | FSPSX | 25% | | | FXNAX | 15% |
Look into ETFs instead of individual stocks. I allow myself a few individual stock plays, but the majority is in an ETF basket portfolio at certain percentages with ETFs which have low expense ratios and well diversified. This happens to be my core portfolio This portfolio is designed with a mix of U.S. dividend stocks, international exposure, and real estate. Each ETF brings unique benefits, combining to offer both growth potential and dividend income. 1. SCHD (Schwab U.S. Dividend Equity ETF) – 30% What it is: SCHD focuses on high-quality U.S. companies with a track record of strong dividends. Why it's included: SCHD is known for its stability and growth potential, thanks to a selection process that favors financially strong companies. This makes it a solid foundation for dividend income while offering growth. 2. DGRO (iShares Core Dividend Growth ETF) – 25% What it is: DGRO invests in U.S. companies with a history of consistently increasing dividends. Why it's included: This ETF focuses on dividend growth, which can help outpace inflation over time. DGRO balances current income with long-term growth potential, making it ideal for compounding. 3. JEPI (JPMorgan Equity Premium Income ETF) – 15% What it is: JEPI uses a covered call strategy on large-cap stocks to generate additional income. Why it's included: JEPI’s strategy offers a higher yield than traditional dividend ETFs, providing a reliable income stream while maintaining a balanced risk profile. It’s excellent for consistent monthly payouts. 4. JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) – 10% What it is: JEPQ applies a covered call approach to NASDAQ stocks, which include tech-focused, growth-oriented companies. Why it's included: This ETF balances high-income potential with exposure to growth sectors. JEPQ’s tech exposure complements the rest of the portfolio, adding a growth element with dividends. 5. DIVO (Amplify CWP Enhanced Dividend Income ETF) – 10% What it is: DIVO focuses on high-quality large-cap U.S. stocks, with an active strategy to select companies with sustainable dividend yields. Why it's included: DIVO enhances income through dividends from blue-chip companies, offering stability. This fund is ideal for regular income, as it emphasizes quality and reliability. 6. SCHY (Schwab International Dividend Equity ETF) – 10% What it is: SCHY provides exposure to international dividend-paying stocks, focusing on developed markets outside the U.S. Why it’s included: SCHY diversifies the portfolio globally, reducing dependence on the U.S. economy. International dividend stocks can add resilience to market fluctuations, making this ETF great for long-term stability. 7. VNQ (Vanguard Real Estate ETF) – 10% What it is: VNQ invests in U.S. real estate investment trusts (REITs), which own and operate real estate properties. Why it’s included: REITs offer a different type of income-generating asset, as they are required to pay out most of their income as dividends. VNQ adds sector diversification and provides reliable income through real estate exposure. --- Portfolio Benefits This mix of ETFs balances growth and income, allowing for long-term appreciation through reinvested dividends. The inclusion of U.S., international, and real estate-focused ETFs provides diversification, lowering the risk associated with single-market exposure. This approach is structured to provide steady dividend payouts while enabling capital growth over time.
I like the fund, as well as SCHD. You got a lot of great advice and know the down side of the funds - growth potential. I have JEPQ, but balanced for where I am in my career (I'd really like to retire in 15 years). As I get closer to that time, I'll rebalance from growth to returns. Here's my current dividend portfolio just to help your research. SCHD: 30% DGRO: 25% JEPI: 15% JEPQ: 10% DIVO: 10% SCHY: 5% VNQ: 5%
I started in the early 2000's with literal pocket change. I was dirt poor and gave myself an allowance of $5/day that had to cover food, gas, and entertainment. At the end of the day, any change leftover went into a jar. End of the month the jar went to the bank. Then it went into a service called Sharebuilder which did fractional shares before it was a thing for the low low price of $12/month, lol. It's awesome you've built yourself some good habits. At your age, I would seriously reconsider the focus on dividends. Especially high dividend yields. There's this thing called a "yield trap" or "dividend trap." There's also something called "return on capital" that is often manipulated by high yield securities to make it look like dividends are something they aren't. At your age options like VOO, VTI, VT are probably a better fit. If you REALLY want dividends, there's options like SCHD and SCHY which target both growth and pay fair dividends. I also really liked dividends when I started, but quickly got suckered in by high yields and lost a lot of cash. If dividends are over 5% tread with care. And stay away from any fund that mentions covered call strategies until you know what a covered call is well enough to explain it to a rubber ducky, and ideally traded at least one winning covered call, and one losing covered call.
VTI / SCHD / VXUS / SCHY These are the funds in my brokerage accounts. I buy them every week.
SCHY looks like it’s ready to brake out, nice div and yield,international etf.
Also, diversify. SCHY, SCHD, and VB (domestic and foreign dividend/growth and small caps) are all up pretty big this morning.
Personally, I think it will. But, I'm still being very careful where I place my DCA money. I will ways put something into international. SCHY is verying interesting at the moment. I bought some last month.
Not a stock- but two ETFs. $SCHY and $SCHD. Both contain a basket of undervalued stocks that pay dividends. One is domestic and the other is international. Your better off picking a basket of stocks that cover a range of sectors - rather than individual stocks. I have done OK with individual stocks - but I think that is more luck than skill. You could easily pick more losers than winners if your luck is bad
I do that too. 401k has about $240k in a target date fund, which is about 50% large cap US, 20% small cap US, 20% international, 10% bond. Roth has $51k and is 45% SCHD, 45% VTI, 10% SCHY. Brokerage has $141k and is 50% VTI, 50% SCHD. I also have a 1/6th interest in a small farm that yields about 3% in cash rent and 3-4% annual average in land appreciation. My share of the land is worth about $140k. Another $10k in cash or money market. And something like $250k in home equity.
I have a small but growing position in SCHY. I plan on having SCHD and SCHY be around 5-7% of my portfolio each though DCA. In Mexico I have another small position in EWW etf ,Banorte(mexicos largest domestic bank) and Femsa(they are a dominant Convenience store in Latam among other things). All together they are less than 3% but I plan on increasing them to under 10% combined. Started buying Nu bank stock in December but it's likely my smallest holding still. In terms of Multinational international stocks I think im only invested in Stellantis and Sony with the first being one of my largest holdings and Sony being a medium position. Tried Chinese tech in 2020 and called it quits in 22.
SCHD and SCHY - very bullish on most companies who pay dividends for 2024. But I especially like Schwab,'s dividend ETFs.
SCHY up almost 6% today lets goo
Start with ETFs. SCHG, SCHY are a good place to start and to compare to. You actually should know quite a bit about valuing a company before you start investing in value/dividend companies. Any valuation mistake you make can't be made up for with growth, because these aren't growth companies. It takes time, and experience, to know what you are doing. The ETFs, particularly the ones above, will pick stocks that have certain characteristics that make them likely to be good investments, and then you spread that risk across hundreds of similar companies.
AI isn't there yet. Don't get too caught up in the hype. It is giving us a nice set of tools to make people more productive, and it is going to make a lot of money, but the techniques right now are not AGI, and I think we might need a different approach to get to true AGI. Just keep investing and believe that business will benefit from productivity gains due to AI and don't worry. \--- Your goal is wrong. "To make as much money as possible as quickly as possible." It is open ended, and you will end up taking risks that will probably hurt you if you don't get your goal straight. At the very least, you need to add "...while protecting what I have earned from real, permanent losses." Is your goal to be an A-lister or to retire early? If you are going for A-lister, you will be taking risks. That gets you to as rich as possible as fast as possible, but there is a high likelihood you will lose everything. If you are going for retirement, I will spitball something for you. SCHD pays 3.5% roughly. SCHY is the non-US version of that fund, and it also pays 3.5%. So if you have a million dollars, you make $35,000 a year in dividends and don't have to sell any shares. VOO is something like 1.5%. You can create a synthetic version of VOO with SCHG and SCHD in equal amounts that will pay about 2%, or $20,000 per year in dividends. Dividends are taxed as ... let's say long term capital gains. It looks like a lot of your investments will not be in tax advantaged accounts. So buying something you can sit on forever is a good strategy. You can make more money with something like JEPQ, which pays 13% currently, but those dividends are taxed mostly as normal income. JEPQ and JEPI are run very differently than most covered call ETFs, so if you are going to use those, know what you are getting in to. That would get you $130,000 on a million dollars, with an expectation that the principal value would increase with the market, but not as much as if you had invested in a pure growth fund. \--- You can probably retire on less than $5,000,000. \--- So, how do you get there. What amount do you need invested to retire? Let's say you need $2M. So you need to do is slightly more than double what you have. You don't need to take risks. You can get 15% per year and in 6 years, you are sitting on $200K per year if you go the JEPQ route, with some left over for investing. If your time horizon is really that short, you really want to play things really safe. Reasonably diversified. Protect against losses more than go for broke on gains. Because if you go for broke and lose half, that puts you 11 years out from 2M. Pay attention. That happens a lot. What about instead of investing in individual stocks, how about QQQM? That covers your favorites plus a lot of others you would probably like to own. If you mix that with 40% to 50% SCHD, you will get some great down market protection. Maybe a combination of SCHD/SCHY. Consider adding some small caps. They are super overdue for a run, and it looks like this could be the year. Not too much, but having some actually helps with the diversification. Going into this year, you might consider long term bond funds, as they can be expected to appreciate 20% for every 1% the FED ends up dropping interest rates. Note that you will probably want to sell these the following year, once things are stable and long term capital gains are in effect. This is NOT risk free, but has a different set of risks. I would suggest a little ARKK, but your time horizon is pretty short, and they are super volatile. \--- Good luck!
>I'm currently only invested in Vanguard® 500 Index Fund just FYI from 1995-2015, the S&P 600 (small US companies) had over 2x the returns of the S&P 500. the S&P 400 (mid-size) performed even better. https://contrarianoutlook.com/wp-content/uploads/2016/09/SPY-Midcap-Smallcap-20yr-Chart.png an index of developed markets (something like SCHY) beat the S&P 500 about 45% of the time from 1969-2022, measured by rolling 10-year periods. https://tweedy.com/resources/library_docs/papers/Dichotomy%20Btwn%20US%20and%20Non-US%20Sept2023%20Fund.pdf the S&P 500 is fine for US large company stocks, but it's not magical or anything. and it's not always the best performing investment option over any given period of time.
I hope you read this. There are a lot of replies. Investing psychology is key here. You said you are worried about losing money. Why do you have a job? To make money. Why do you invest? To make money. How does owning a business pay you back? 1. Dividends that the business pays you directly. 2. Share buybacks that lower the number of shares and increase the relative value of a share of stock. 3. By growing the business, where the business is not yet mature and paying out directly. With an ETF, you can own a small part of a bunch of businesses. Another way you can make money from owning a business is by using a covered call strategy, and you have to be careful here because they vary in quality. The ones that appear to work well are Jepq, Jepi, Svol, Divo, and a few others. If you own VOO, well, you could do a lot worse. If you want to trivially beat VOO, you can set up a mix of a value and a growth ETF and balance once a year. SCHD and QQQM is the last one I saw. Beat VOO pretty handily. QQQM is a bit under-diversified for me, and SCHD and SCHG also beats VOO, but not by as much. SCHD pays a 3.5% dividend. That is paying you back. DIVO is at 4.5% ish. SCHG and QQQM pay you back with growth, which also means lots of volatility. In a down market, these tend to go down a lot more than a value/dividend strategy ETF. And you can do quite well with a mix of something like SCHD, SCHY (domestic and foreign dividend), and mix in some JEPI as it is very low volatility and high payout if the account is tax protected. Also SVOL - higher payout - because it does not move like the others, since it isn't based on underlying stocks. If you find that you aren't as risk averse as you thought, you are young. It is best to have a large portion of your portfolio in growth over a long time. This is more volatile, but if you don't touch it, it will grow faster over time than the safer stuff. One other thing - dollar cost average in. Dollar cost average out. Lots of small purchases and sells. This keeps you from having big wins or big losses when moving money. Buying on dips is great if you have the stomach for it. Mostly, you want to buy consistently over time, rebalance occasionally (yearly or less, not more), and otherwise leave it alone. If you want to get into individual stocks, do the ETF thing first. Get comfortable, and then SLOWLY buy in a share or two at a time to a SMALL portion of your total portfolio. Do this until you know what you are doing REALLY well, because you WILL make mistakes, and if you make them with big dollar amounts, it is life changing bad. prove to yourself you can do better than the ETFs before you really commit to stocks over ETFs. Good luck!
Can’t go wrong with QQQ, SPYD, SCHY, NULG, VOO, SPLG. Can you beat these funds with a little bit of work? Sure, I do. Don’t look at your stocks if you come back in 10 years 9/10 times you would have made money. YES time is always now if you don’t invest you are guaranteed to lose money. Look at time value of money it basically says that 1 dollar is worth more today than it will be worth tmrw. Inflation is like 3.3% rn so If you want to wait a year and try to time the market your money would have lost 3.3% of its value. *Not Financial Advice, results are not guaranteed, invest at your own risk*
Will never forget that poster in [this thread](https://www.reddit.com/r/stocks/comments/xl1ba5/deleted_by_user/) from September 2022 who was **so sure** shit was going to hit the fan and telling us how he was going short because of this and that metric and the car crash ahead. He since deleted all his posts, but here was my first response to him: > How do you *know* there’s a car crash ahead? And if you do know it, why aren’t you aggressively short? Go 100% sqqq and back up your certainty. > > Just like when the “car crash” was the lingering Great Recession effects in 2010-11, or Grexit, or Brexit, or cratering oil prices, or skyrocketing oil prices, or whatever other “crisis” people were sure would tank the market so “stay on the sidelines til it passes”. > > Or maybe we are at 2008 and shit will hit the fan. But maybe not. > > That’s why yours is a stupid & clueless take. > > OP: I’m DCA’ing SCHD, SCHY, SCHB, FDRV, AAPL, CRM, RTX presently (first of every Q). Then I am monitoring any number of other stocks to see where glaring value, if any, presents itself. Take this as another lesson folks that people seemingly need to learn over and over and over again. No one knows shit about shit for the short/medium term. Buy ETFs on the regular and keep scouting for quality undervalued companies you'd like to own long-term. 2023 has been my best year since 2011. It could have gone the other way, of course. But when you own good companies and are focused on the long-term, you can feel good whether they go up (make $$) or down (buy more). Same as it ever was.
VTI SCHD VXUS SCHY But I have a pension that allows me to skip bond exposure. Note: this is geared toward drawdown/withdrawal phase, not accumulation phase.
Oh I can see why you'd wanna get some stocks then! I would say dividend focused ETF's like SCHD and SCHY would be good to give you your dividends as well as more portfolio diversity and decent growth.
Dividends inherently are neither good nor bad, they can be used as an indicator to valuate companies (SCHD and SCHY do a good job at picking valuestocks). In itself I find dividend disadvantageous, since they create tax events and reduce compound interest.
VOO is larger US companies. long-term you'll also want to own smaller US companies (VIOO, FNDA, AVUV, SVHA, etc) and international companies (VXUS, SCHY, FNDF etc)
70 USA. SCHB, SCHD, SCHG, AVUV. 30. Int. IDHQ, SCHY, AVEM
Good quarterly, huge cash reserve, next iteration of Switch hardware next year, Japan trending, solid dividend. Nintendo is conservative as all hell. Nothing is risk free and gains aren’t linear. It’s a top holding in SCHY if you’d prefer to spread your risk, but retain exposure.
It's total return including dividends, what it doesn't include is DRIP The trade is less volatility and DRIP compounding for slightly slower gains. I am not a fan of stock picking (the point OP's premise relies upon) when I could own all of the companies doing well. Same as if I had went with VOO. And disclaimer: SCHD and SCHY make up about 3k out of 74k of my total portfolio. My total portfolio returns about $1300 in dividends and interest each year. About $1000 of that is entirely tax exempt or state tax exempt. I think I can handle the "tax drag" on $300.
In my research, Schwab has the lowest expense ratios, best customer service, and best website out of Fidelity, Schwab, and Vanguard. At Schwab, take a look at: * SCHF * SCHE * SCHD * SCHA * SCHB * SCHG * SCHY It's basically all you need.
I have DFIV and SCHY in my long term and happy so far.
Schwab, by a country mile. I went through this a few years ago and went with Schwab, and I couldn't be happier. * Schwab's color scheme is both pleasant and professional. * Schwab's customer service is honestly the best customer service I have experienced. They do not read from scripts. The only time they ever do that is when they're required to provide some disclosure that's obviously required by law or regulation. They just talk to you. If you ask them something they don't know, they try and figure it out, but then they're more than willing to transfer you or give you the direct line to specific departments. You do not have to jump through automated calls and systems to speak to a person, and when you do speak to a person (I usually do online chat or phone calls), they are efficient. * Schwab's customer service has *never* tried to sell me a Schwab product. Not once. Fidelity holds a former employer's 401(k) of mine, and they are forcing me to call in to roll it over to an external party (i.e., my Schwab account). I called them and had to listen to a guy blabber for 50 minutes (!), and in the end, we didn't perform the rollover and he had scheduled an appointment with a Fidelity investment advisor for me. * Schwab is the only brokerage who is also a bank. You can transfer money between your checking and brokerage accounts instantaneously. They have unlimited reimbursement for ATM fees, including internationally. * They have been pretty steadily updating the website and mobile app, and I generally feel it's an improvement. It's not perfect, but it's clear they're paying attention to feedback. * They once fixed a bug I reported in just a few days or a week. In general, their customer service offers up to forward on feedback to the relevant teams. * Since they purchased TD Ameritrade, they are now the only brokerage of Fidelity and Vanguard that has a trader API (i.e., an HTTP API) available to individuals. There is now a new Schwab Developer Portal, and they're rolling this out now. * No commissions for their customer service and broker workers, so they just talk to you like normal human beings. No fees on any normal trading. Very low expense ratios. * They have a wide selection of great ETS and mutual funds. Good ETFs are SCHB, SCHD, SCHE, SCHY, SCHH, SCHA, SCHG, SCHF. * They have stock slices and a robo advisor. I haven't used the latter yet. * They are an extremely conservative and professional company. This means that they treat you like an adult, don't try to upsell you on anything, and provide good warnings when trading to make sure you aren't cowboying it up. They really make sure that the thing that *you* are doing is in *your* best interest. * They have a Schwab branded American Express Platinum credit card that is a 1.5% flat cash back (no moving categories). The cash back deposits directly into your linked brokerage account with no action from you. Fidelity's card has 2.0%, but I feel Schwab is better than Fidelity in general, and the 0.5% wasn't enough to make me get their card and split management across Schwab and Fidelity. Schwab's credit card could be better, but it's good enough for my uses. (I use two other dedicated credit cards for most purchases and then the Schwab as back for anything those two don't cover well.) * Schwab has some automated investing features. Could it be better? Yes. Could it allow automated investing of more products? Yes. However, I'm happy enough currently with what they have. I just really like them. It's just astounding how pleasant it is to talk to their people. It's clear that they are trained very well. Schwab has basically every product you need. Do Fidelity and Vanguard have some features that are tweaked in their favor over Schwab? Yes. But Schwab has features they don't have as well, and I believe Schwab's features are much more enabling in general for my needs.
Fidelity is my HSA and primary bank. Schwab is my Roth IRA and I use its robo investor for the lions share of my taxable investments. I also have a self managed taxable with each. VOO+VBR at fidelity, SCHD+SCHY at schwab.
You cqn biy schwab assets on other platforms. Im holding SCHG, SCHD, SCHY, amd SCHH in Vanguard. Switch if you dont like them.
>That's a 4% withdrawal rate You intend to withdraw 4% of your account per year >which is historically safe for a 30 year, inflation adjusted drawdown using US-centric stocks and bonds and that is a safeish rate to withdraw, based on the fact that retirees starting a 30 year retirement most of the time in the past century could consistently withdraw that amount. >There's no need to seek out dividend focused investments. Not sure how to make this sentence clearer. >Dividend focused portfolios do not have higher risk adjusted returns than other portfolios Risk adjusted return is (a) the amount of money you can expect to make each year from an investment, minus (b) the amount of money you could make in cash, divided by (c) the yearly variation in returns (risk). Higher risk adjusted returns is better. Lower risk adjusted return is worse. >particularly when adjusted for common factors like value and quality Value refers to stocks of companies which are priced low compared to the amount of profits the company is making. Quality refers to stocks of companies with profits that are consistent and have high margins and low debt. Stocks with high dividends are often also value stocks. Stocks with consistently rising dividends are also quality stocks. If you control for value and quality, there is no need to look at dividends. >If you are looking for a 30 year drawdown, 20-40% bonds is appropriate. If you want to withdraw 1000 a month from a 300k portfolio for 30 years before you die, then a good portfolio would be between 20 and 40% bonds (things like BNDW, SCHP) plus 80-60% stocks (things like VTI, VXUS). >For a perpetual withdrawal, you will want want 80-100% equities. If you want to withdraw 1000 a month for much longer than 30 years, the you will need to take on more risk by increasing the amount of stocks (things like VTI, VXUS), and lowering the amount of bonds (things like BNDW, SCHP). >I'm sorry, I didnt understand a thing you said this time, remember I'm a beginner to this, so I dont understand that much. https://reddit.com/r/investing/wiki/index/gettingstarted https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy >Also you didnt mention any dividend ETF Correct >and I was hoping you mention it because I ve been looking in to Peter Schiff dividend fund and others like SCHY. I see no reason to buy a fund based on dividends
I'm sorry, I didnt understand a thing you said this time, remember I'm a beginner to this, so I dont understand that much. Also you didnt mention any dividend ETF, and I was hoping you mention it because I ve been looking in to Peter Schiff dividend fund and others like SCHY. But what I really need to know is what should I invest 300k in, to get 3000$ per quarter (1000$ per month)?
I don't know much about it, looks to be ok, after fees the 10 year annulized returns are a little over 4% what isn't great but not bad for stable returns I am not a fan of active funds with high fees there are lots of international dividend funds I think would be better SCHY from schwab for example
IWF is a Russell 1000 growth ETF, so it probably holds most of the stocks in the S&P 500. let's look at the ETF overlap tool here: https://www.etfrc.com/funds/overlap.php ....and 99.2% of IVV's 503 holdings also in IWV. >if there are any apparent flaws you're just buying the same large US growth company stocks in 2 different packages. the top 10 holdings are probably identical: Apple Amazon Microsoft Nvidia Tesla etc. large US growth has been a great bet for the last 10 years, but will not be on top forever. add some US small cap (VIOO, VB, etc) and international (VXUS, FNDF, SCHY, etc).
SCHY is only 100 companies, you should probably hold a broader fund like VXUS as well for international exposure. This is a bogleheads sub so people are going to say indexes only. I only own ETFs and yes as a low income person it makes me sad to think about what if I had yeeted every penny I could find into AAPL since I graduated high school in 2007 because Tim Apple appeared to me in a vision. But the Deceiver also could have tricked me with a seductive vision of GM or something.
Mid-twenties, currently maxing out my 401 and Roth IRA’s. Outside of that I’ve been investing about 1k bi-weekly into VTI. Just came across SCHY and am trying to get that to around 10% to add some foreign exposure. Is this a reasonable long term strategy for my spare money? Should I be looking into tbills, individual stocks, more dividend focus or other etf types? Or are those things to consider down the line closer to retirement? I have a decent chunk in cryptocurrency as well (sorry) that I view as my higher risk play, so my goal for my stock/traditional investments has been more lower risk long term investments to balance that. Am I being to conservative for my age with that spare money, or is this more boring etf approach exactly what I should be doing for long term? Any advice or something I’m missing is appreciated
SCHY. All international funds from Vanguard are garbage. The number doesn’t lie.
I'm learning that now, having to hit refresh is moronic. I got it just to throw money into a diversified VOO, VTI, SCHY account but it even sucked for that. Going back to Robinhood
Greater diversification. SCHD is excellent but it is essentially based on the top dividend stocks in the S&P 500. SCHY more or less tries to replicate the underlying thesis with foreign stocks. Small and mid-caps are left out as are REITS and MLPs. I wouldn't mind similar-styled ETFs in those areas. If I had to pick just one investment SCHD would be a leading contender, but I am not so forced.
I searched all of the Schwab documents, and they do not ever give the precise date of reconstitution. However, I did check the underlying index reconstitution date. And it turns out: "The Dow Jones U.S. Dividend 100 Index which is reconstituted annually, at the open of trading on the Monday following the third Friday of March each year.” And this turned out to be when SCHD was reconstituted, on March 20th, 2023, which Schwab also confirmed to someone else who asked. So, it could be that SCHY is reconstituted when Dow Jones International Dividend 100 Index gets updated. To help confirm this, I went to the document for the Dow Jones Dividend Indices Methodology, and I found that they appear to do all the reconstitutions on the same date. Namely, "Index composition is reconstituted annually. Changes are implemented at the open of trading on the Monday following the third Friday of March." This includes the Dow Jones U.S. Dividend 100 Index (which SCHD follows), Dow Jones International Dividend 100 Index (which SCHY follows), Dow Jones Emerging Markets Select Dividend Index, etc. So, my hypothesis is that March 20th is the date of reconstitution, although this may be different for SCHY since it is so new, with an inception date of April 21, 2022.
I asked ChatGPT for you: The Schwab International Dividend Equity ETF (SCHY) is rebalanced on a quarterly basis. The rebalancing typically occurs on the last business day of March, June, September, and December. During the rebalancing process, the fund's portfolio is adjusted to ensure that it remains consistent with its underlying index, which is the Dow Jones International Dividend 100 Index. The exact date of the rebalancing may vary slightly, so it's always a good idea to check with Schwab or consult the fund's prospectus for the most up-to-date information on the rebalancing schedule.
I know it is reviewed annually.. But when does it occur? Like SCHD is reviewed annually in March. So when does SCHY review occur?
I'm just wondering does anyone know when SCHY gets their index reconstitution? There were tons of news and buzz about SCHD's reconstitution, but I can't find any information on when SCHY gets its reconstitution
I remember reading that 40% of the S&P 500 income comes from international so if you just own it like with VOO or SPY, you're already overexposed to international. Of course I found that out less than a week after buying a lot of SCHY in my IRA to diversify. It hasn't done that bad(I think down 5%), but I wouldn't have bought it if I realized VOO was already so much international.
As other have said, you probably should be taking financial advice from strangers on the internet. However I will answer your question as you say you are just looking for ideas. Personally I would self manage the money (no need to pay someone else to do what I am capable of doing). I would invest $4M into a mix of dividend focused ETFs like SCHD, SCHY, and SCHZ. This is opposed to my standard “I want to grow my money long term” picks of SCHB, SCHF, SCHZ. I would want to go with dividend funds so that I don’t have to hope/worry about the funds going up in value to have money to live on. With $4M invested with those funds’ current yields you could get north of $160k in a year in dividends. I would budget to live within $100k and reinvest any dividends gained above that amount. I would use the other $1M to pay off my debts and build a forever home plus have money to spend on hobbies/travel. I would try to keep around $250k in an FDIC insured bank account as a break-glass/rainy-day fund.