VYM

ai_factcheck

TLDR Math first: $300/week for 4 years = **$62,400 contributed** With reasonable historical returns (~7–9% blended), you’d likely end up around $70k–$75k, not $100k $100k by Nov 2029? Very unlikely without: • Much higher contributions (≈ $400/week), or • Extremely high sustained returns (~24%/yr, unrealistic). Portfolio issues: • Overlap (VUG + VONG do the same thing; VNQ + REET overlap). • Too aggressive for a 4-year, must-have-cash goal (heavy equities, thematic risk). • Fine for long-term investing, not ideal for a car purchase timeline. • More realistic expectation: • $70k–$80k is a reasonable target at $300/week. • $100k requires either more savings or more time. Better approach for this goal: • Simplify (1 broad stock ETF + bonds). • Increase bonds/cash as 2029 approaches. • Prioritize capital preservation over growth. ⸻ Weekly ETF Investment Plan: Can It Reach $100K by November 2029? This plan assumes investing $300 per week starting in November 2025 and continuing for four years, or roughly 48 months, with no withdrawals and full dividend reinvestment. Over that period, total contributions would equal approximately $62,400. The portfolio is spread across eight ETFs covering U.S. growth stocks, high-dividend equities, emerging-market bonds, real estate, natural resources, and a thematic AI/technology fund. The weekly allocation breaks down to $50 each into VUG, VONG, VYM, and VWOB, and $25 each into ARTY, GNR, REET, and VNQ. This results in roughly two-thirds of the portfolio being equity-based, with the remainder split between bonds and real-asset exposures. Dividends are assumed to be reinvested, so all return estimates reflect total return rather than price appreciation alone. To project future outcomes, historical total returns for each ETF were reviewed and normalized to conservative forward assumptions rather than peak historical performance. ARTY has delivered roughly 11–12% annualized returns since inception but with high volatility, so a 10% forward assumption is used. VUG and VONG have produced long-term returns in the low-to-mid teens, but given concentration risk and market cycles, a 10% assumption for both is reasonable. VYM has historically returned about 9% annually when dividends are included. VWOB has produced lower but steadier returns in the 3–4% range historically, though current yields justify assuming closer to 5%. GNR has been cyclical, averaging under 5% long-term but higher in the last decade, so an 8% assumption is used. REET has returned roughly 4% long-term and VNQ around 6–7%, so forward assumptions of 5% and 6% respectively are used. When these assumptions are weighted by allocation size, the blended expected return for the entire portfolio comes out to approximately 8% per year. This is an optimistic but reasonable estimate based on long-run averages, not a forecast of guaranteed performance. Using that return assumption and weekly contributions, the projected portfolio value after one year would be roughly $16,200 on $15,600 contributed. After two years, contributions would total about $31,200 with a projected value near $33,800. After three years, contributions would reach approximately $46,800 with a projected value around $52,800. By November 2029, total contributions of $62,400 would be expected to grow to roughly $73,000 to $74,000, assuming steady markets and full dividend reinvestment. That result is materially short of the $100,000 target. To reach $100,000 in four years on $300 per week would require an average annual return of roughly 24% sustained for the entire period. That level of performance is far beyond historical norms for diversified ETF portfolios and would require unusually favorable market conditions every year. Alternatively, keeping the assumed 8% return and solving for contributions shows that weekly investments would need to increase to roughly $400 per week to reach $100,000 by November 2029. It is also important to recognize that even the $73,000 projection is not guaranteed. Markets over a four-year window can underperform historical averages, particularly for equity-heavy portfolios. While a strong bull market could improve outcomes, relying on exceptional returns introduces significant risk, especially when the funds are needed on a specific timeline. Because this is a four-year goal, such as saving for a car or other near-term purchase, the portfolio’s risk profile deserves scrutiny. The current allocation is diversified but aggressive for the timeframe. There is meaningful overlap between VUG and VONG, both of which target large-cap U.S. growth stocks. VNQ and REET both provide real estate exposure, which has been volatile and interest-rate-sensitive in recent years. Sector-specific funds like ARTY and GNR add volatility that may be appropriate for long-term investing but can work against a fixed-date goal. For a four-year horizon, a more balanced or simplified approach would typically improve reliability, even if it slightly reduces expected returns. Increasing exposure to high-quality bonds, short-term Treasuries, or a conservative allocation ETF would reduce downside risk as the target date approaches. Broad market equity funds can replace overlapping growth ETFs without sacrificing diversification, while limiting niche and thematic exposure reduces the chance of large drawdowns at the wrong time. In summary, investing $300 per week for four years is a strong savings habit, but under realistic assumptions it is unlikely to reach $100,000 by November 2029. A more defensible expectation is a final value in the $70,000 to $80,000 range. Reaching $100,000 would require higher contributions, a longer timeframe, or accepting substantially more risk with no guarantee of success. For short-term goals, preserving capital and reducing volatility often matters more than maximizing growth, and adjusting expectations or strategy early improves the odds of a successful outcome.

CornerOne238

Sure, took your run and changed it to 4% yearly withdrawal. Not sure why you used VYM, this is a very low yield fund, that I personally wouldn't hold in retirement. I would hold something that produces income like ARCC or MAIN. Here's the result of pure Total market vs 60 ARCC/40% bonds. https://testfol.io/?s=jOef5m7BOLF As you can see it easily beats the market and you never have to sell a single share except for rebalancing.

Cruian

>When stock pays dividends, its management strategically decides which part of the earnings and assets to use to pay out. There's a reason dividend stocks recover within days after ex-date: all of its income producing assets are untouched. Even with this, a dividend approach may not be the best even during withdrawal phases. Several months ago I ran a "test" on a few dividend funds (VYM and SCHD) compared to US total market (VTSMX) during the withdrawal phase ($500,000 initial value, $5,000 a month withdrawn, dividends reinvested). I've pulled those back up and now added a few additional models (two adjust the start date for my VYM test to match SCHD inception, plus one for each in a 60/40 stock to bond ratio). In all tests the dividend fund either was exhausted before the regular index or as of today doing worse than the index but both still going (often spending little, if any, time above the broader index). * No bonds, US total vs VYM (since VYM inception date): https://testfol.io/?s=egXkcaW4uyd - VYM fully depleted months before VTSMX * No bonds, US total vs VYM, adjusted to SCHD's inception date: https://testfol.io/?s=eREY7dkTXnF - both survive to this day, but VYM is worth far less than VTSMX * Same as bullet 2, but 60/40 stock/bond: https://testfol.io/?s=gh1QzwYfooG - VYM may not even finish the year unless it has massive gains * Same as 1, but using 60/40: https://testfol.io/?s=3QcRhLZfmwn - VYM depleted first again * VTSMX vs SCHD (limited to SCHD inception), no bonds: https://testfol.io/?s=a9RozZvpcQG - SCHD worth roughly 2/3rds of VTSMX * Same as bullet 5, but 60/40: https://testfol.io/?s=8C9h1vXaHLI VTSMX in much better position here as well

marioacastiello

Currently I’m mainly in VTI, VOO, VYM but I want to add an international fund like VXUS

Pale_Pineapple_4147

PHYS, SETM, SLV, QQQM, VYM. There’s tons of great options other than VOO. I’ve been investing in PHYS since 2018 and best decision I’ve ever made

Sunshibetempo

Thank you makes sense will look at SCHD and VYM.

mrtrentsd

VOO is for long term growth. If you are both retired, can you risk a big down year or years? VOO dropped 18% in 2022. It took VOO 19 months to recover from that. In 2008 it took VOO 65 months to recover from the Financial Crisis and when the Dotcom bubble burst in 2000, it took VOO 80 months to recover. Look at SCHD or VYM

slothfullyserene

Oh yes. Kept everything else and dropped fselx to 5% just the other day; shifted all that icing to int’l and div (IDV, FDVV, VYM). Life good.

Sea-Economics-9582

https://preview.redd.it/6s1v8ut0uz9g1.jpeg?width=1170&format=pjpg&auto=webp&s=968d183a336b7554cac8c45e8b2b09a7f6835775 Using decent etfs. VIG, SCHD, VYM, VOO, and BRK.B. Just been popping in some to each find every week and reinvesting dividends. Got tired of getting burned when I couldn’t be watching my portfolio at work or other stuff, so changed my strategy for a long term set it and forget it. To the left is when I was trying to be cool and catch trades and play cheap options, to the right is when I quit messing around and just forgot about it.

One_Jellyfish_3102

VYM pays dividends quarterly. In 2025, they have paid a total dividend of \~$3.5008, which when divided by the current share price, equals the yield of \~2.45%. SCHD also pays dividends quarterly, so you can do the math. The 30 day SEC yield number you often see is related to dividends, but represents the net investment income (interest and dividends from the fund's holdings, minus expenses) earned over the most recent 30-day period, annualized (projected as if that rate continued for a full year), and expressed as a percentage of the fund's current share price (or net asset value) at the end of that period. There are ETFs that pay monthly dividends, if that's your objective. You need to do your own research and choose the ones that meet your risk profile.

the_og_unchosen_one

I have two types of accounts. Accounts I can’t fully trade in because of tax implications (older investment non retirement) and accounts that I can fully trade in (retirement and newly opened where I can buy what I want with money we have left over after our spending). On the accounts I can fully trade in I am making 22%. I got a bit lucky with Nvidia but the rest is VYMI, VOO, Gold, silver, precious metals mining etf, VONE, VYM. Would have been even higher if I hadn’t put so much into bitcoin. The luck with Nvidia is balanced out by the losses in bitcoin so I call it a solid no luck 22% with a good mix of US and international ETFs and precious metals to hedge for inflation.

Livueta_Zakalwe

Have some diversity - own some dividend funds, some foreign funds (I like VYM and VYMI), some TLT and some gold.

EmergencyFair6786

Not the right place. Any S&P fund isn't bubble proof right now because the biggest bubble right now is also filled with 5/6 biggest market cap stocks in the world.  What you're looking for is VTV, VYM, or SCHD. When the bubble pops 100% VOO. 

OvenOdd1705

GOOG? If you had entered at any point during the year except like late Nov until now you made money on class C. That, BRKB and oddly enough VYM are holding my whole port up.

daviddjg0033

Why not sub VYM or VTV instead of having single sector risk. I like value here and you could buy a pullback in growth later.

Digital-Doc-777

Need more stock exposure as interest rates are dropping. Look at some VTI, VIG, VYM and GPIX to establish a dividend stream of income, and allow for some growth on at least half the overall portfolio. You have the money, need to get it working more tax efficiently.

Denny_Dust91

Rate my portfolio Hello, I'm not some stock expert like you guys but make decent money and been investing awhile... Rate my holdings, or tell me what you would change! I probably won't listen, but I'll take it into consideration. Total Portfolio: $771K~ (all approx. numbers) VOO: $455K VYM: $109K SGOV: $98K (Slowly shifting to stocks, DCA) NEE: $24K LMT: $23K PYPL: 21K TGT: 21K UPS: 20K ADBE: 20K

New-Parking-1610

SCHD SCHY SCHB all equal split DCA over 2 years would be my go if it has to be all stock 300k just my opinion not advice and those ETFs are not absolute and interchangeable VOO VYM VYMI or SPY DIA VEA and so on so forth

GaylrdFocker

FDVV, FDRR, VYM, VYMI, SCHD, DGRO...any can be used. Pick what you want. The "general consensus" is to keep it simple. Why have multiple funds when 1 is fine.

Mantissquirrle

For RMDs, safety is key. A bond-heavy portfolio (70-80%) with some equities is a solid foundation. Consider breaking this into: 1. Cash buffer: 1-2 years of distribution needs in money markets/HYSA/short-term CDs 2. Core portfolio: Bond ladder (individual bonds or ETFs like BND, SCHZ) plus quality dividend stocks or ETFs (VYM, SCHD) 3. Inflation protection: Small TIPS allocation and possibly I-bonds (annual limit applies) Since they have expenses covered by pensions/SS, this money can be more preservation-focused. Tax considerations are crucial - if they don't need all RMDs for expenses, consider Roth conversions or QCDs to charities to manage tax impact.

chut22

I created what I think is a safe and well diversified long term portfolio. Point out any flaws or oversights. || || |Asset|Percentage|Vehicle|Notes| |S&P 500|50%|$VOO|Ol' reliable| |High Dividend ETF|10%|$VYM|Value Stocks / Passive Income| |Developed Markets ETF|10%|$VEA|International Exposure| |Real Estate ETF|10%|$VNQ|Asset Diversification / Passive Income| |Gold ETF|5%|$GLD|Inflationary Hedge| |Bitcoin ETF|5%|$IBIT|Inflationary Hedge| |Speculation / Hedges|5%|Growth Stocks / $QQQ|Swing Trades / Hedges| |Cash / Bonds|5%|Cash / $BND|Cash & Cash Equivalents for buying opportunities| |Total|100%|||

chut22

I created what I think is a safe and well diversified long term portfolio. Point out any flaws or oversights. || || |Asset|Percentage|Vehicle|Notes| |S&P 500|50%|$VOO|Ol' reliable| |High Dividend ETF|10%|$VYM|Value Stocks / Passive Income| |Developed Markets ETF|10%|$VEA|International Exposure| |Real Estate ETF|10%|$VNQ|Asset Diversification / Passive Income| |Gold ETF|5%|$GLD|Inflationary Hedge| |Bitcoin ETF|5%|$IBIT|Inflationary Hedge| |Speculation / Hedges|5%|Growth Stocks / $QQQ|Swing Trades / Hedges| |Cash / Bonds|5%|Cash / $BND|Cash & Cash Equivalents for buying opportunities| |Total|100%|||

EmergencyFair6786

I'm switching a significant portion of my VOO holdings to VTV and VYM. I'm not going to collapse just because NVDA runs out of lotion and hands.

sidslidkid

Boring I know, but I’m going heavy in VTI, VXUS and VYM until day trading gets back to easy mode. I’m slowly turning into my dad.

HeavySink3303

If you are concerned of overvalued stocks, you may try RSP (equal weighted s&p 500) or some 'wide' value or dividend ETF like VTV or VYM (they won't include 'overpumped' stocks).

gnew18

#Your doing it wrong - You buy stocks with no intention of selling them until it’s plain stupid that you don’t, you traded on emotion. This move treated the stocks as a gamble, this isn’t a casino. - You had a gain, not a loss. - You will be taxed as ordinary income not long-term gains. - no one knows the future, but NVDA is not an AI play. It’s a chip and software company that is currently well run and has not had any major missteps. - AI has absolutely inflated the market beyond reason, but the entire market is inflated if the P/E is over 1:1 - The market is not a casino. Buy good companies like NVDA and hold. Buy more on the dips. - OR stay out of the market. - OR buy real dividend paying stocks like AMKBY or CVX and make your dividend money with less risk. - OR buy VYM and let the market makers do their thing. Still, I can’t say you are wrong for sure because I can’t predict the past or the future.

EmergencyFair6786

Definitely get a more diverse portfolio. But their holdings are a bit oddly weighted.  Part of me has considered a VYM/QQQ combo or similar. Something like 70/30.  One of my problems is that my 401k and HSA have very limited fund options. I essentially get a VOO, VTI, or QQQ option. Otherwise it's all targeted funds or bonds, etc. Very annoying. 

Digital-Doc-777

Combination of funds that pay dividends. Look at VYM, VIG, SCHD, and JEPI.

Digital-Doc-777

A dividend ETF such as VYM that pays quarterly, or JEPI that pays monthly.

Sea-Communication-98

I would divide among ETFs of different types to be exposed to the Tech Upside and track the S&P. 25% - SMH/SMHX - here's your NVIDIA, Broadcomm, etc. 25% - SKYY, FDN or similar - here's your tech and exposure to the big AI gains with more risk. 25% - VOO, VYM something with a larger # of holdings to help with diversification and other companies outside of Tech. VYM or similar will give ya some dividends too.

theduderino38

I’m not selling any of my weedstocks shares at these prices - but I did buy some of my fav divis this week - CCI , VYM and QQQI . If I’m ever able to recover my losses here %80 of funds will be re balanced into my divis. Cheers!!

RegularHistorical494

VYM and VYMI are more volatile than SCHD and SCHY.

BallsHardest

Bought a few hundred shares of that early this year and it's been the most dogshit thing I hold. yEaH bUt YoU dOnT hAvE tO sElL. I bought VYM at the same time and it's doing fine. Those baggies are fkn insane.

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.

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.

sidslidkid

VYM is underrated

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)

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.

Laureles2

My portfolio is several million at this point, with most in Vanguard ETFs like VGT, VOO (SP500), VYM, VIG, and VFH. The individual stocks are generally purchased when they pull back for some extra juice. For example both GOOD and AAPL had a big pullback and I bought. I also bought UNH when it was around 275-280 (down almost 55%!!) for a while. Will see how they work out.

NYEDMD

Would suggest setting up a separate account for the $30K. Say your payment is due Oct 01 2027. Start by investing 50% to 75% (exact percentage depends on your risk tolerance) in an etf like VYM or VIG. Set a trailing stop loss at 15% to 25% (again, depending on your risk tolerance). Spring of 27’, knock down the equity position to 50% or so. Around Labor Day, convert to cash. Best case scenario, you can pocket as much as $5K to $8K. Good luck.

BeneficialQuality899

I’d go VOO, FTEC or VGT (I think they’re better than SMH), VYM

ThanksS0muchY0

VUG and VYM are dividend vanguard ETFs, for anyone wondering

Academic-Mall-8952

Buy VYM

OryxDaMadGod

Goddamn bro, looks like you lucked out with some solid picks back then, it’s clear that the uber hype ran down tho lol It’s done better than your wildest dreams — it’s good enough to brag about and also to have something nice for yourself Buy VYM, SPY, or whatever the fuck else you consider safe and do your future self a favour

SirGlass

>but others say "Holding too much of your portfolio in one investment, even a diversified one, can leave you overexposed to risk. This does not really make sense , most target date funds do not hold "One investment" they hold usually some mix of USA stocks , foreign stocks , bonds This is not "One investment" it may be one mutual fund but it holds all sorts of different investments Its perfectly fine to invest in one fund as long as the fund is diversified like a target date fund is. Fore example take two portfolios 1 . VT 2. Split between VTI , VOO, QQQ, SCHG, SCHD , SPLG, IVV, VYM what one is more diversified , 1 2. holds a bunch of overlapping funds that concentrate on USA large cap stocks, just holding a bunch of funds is not diversification , you have to look at what the underlying funds hold VT is a world index fund that holds almost every public company on earth, 2 is a bunch of funds that only hold USA companies and concentrated on large cap companies. 2 is actually less diversified despite holding a bunch of funds

EggIsGettingRekt

SCHD and VYM are solid if you want dividends without overcomplicating things. REITs like VNQ can boost yield too, just a bit more volatile

cool_yuwen

Gently, you're making this way too complicated. VTI already holds the stocks in SCHD, VYM, JEPQ, etc. You're created a portfolio with a ton of unnecessary overlap.

EvolvingDior

VYM

srfdriver99

Well, for large cap value, VTV exists. So take a gander at this chart: https://totalrealreturns.com/s/VFINX,VYM,VIG,SCHD,VTV Dividend appreciation and the extra criteria SCHD has seem like better strategies than raw value, though there are periods on this chart where VTV is winning. > I tried doing a covered call strategy on my own a few years ago with various degrees of success. I think you need to have pretty good market timing in order for it to be successful- and a pretty good read on macro currents. I don’t believe that an ETF which does a covered call strategy automatically is a winning strategy. Strong agree. I'd be interested in seeing a couple of actively managed covered call ETFs rather than these gimmicky indexed ones. I suspect one that focuses on dividend-paying value companies and intentionally selects dates that avoid earnings spikes could outperform buy and hold (on those stocks, not necessarily the market as a whole).

weasler7

Yes. These dividend companies are typically large cap value companies- don’t think it’s a bad idea by all means to be diversified in them. Especially because many people are heavily tilted towards growth companies. I think you’re totally correct. There is always a rotation to value when there is market stress. For example, even this April, VYM draw down was about 9.5% while SPY was down about 15%.

srfdriver99

Dividend investment would be _far_ better if it wasn't for the tax treatment causing a lot of companies to do share buybacks instead. Unfortunately, buybacks aren't nearly as reliable as dividends (not that dividends are _inherently_ reliable, but a number of companies make it a goal to not cut the dividend or maintain a particular minimum dividend payout) so it's very difficult to do sensible buyback-oriented investing. There are some ETFs that attempt to do this like PKB and DIVB, and [as you can see PKB has not done well.](https://totalrealreturns.com/s/VFINX,VYM,VIG,SCHD,PKB,DIVB) As long as this persists, dividend investing is always going to have returns which are meaningfully divergent from that of the broader market, for good or ill. In a year where tech is taking a bloodbath, the dividend approach will outperform. In a tech boom year, the dividend approach will underperform. (Most of the big tech companies do buybacks rather than dividends, or pay out small dividends compared to how much they do with buybacks.)

srfdriver99

Yep, SPYI is terrible, but you should look at something like VYM, VIG, or SCHD for a "traditional" dividend ETF, not the covered-call ETFs. These are just normal ETFs that invest in dividend-paying stocks using some criteria or another. https://totalrealreturns.com/s/VFINX,VYM,VIG,SCHD But as you can see, the max drawdowns are very similar. VYM did a poor job of recovering after the pandemic dip, but the dividend funds outperformed in 2022-2023 before the S&P 500 recovered in 2024. I would argue that these are reasonable selections, unlike the covered call ETFs (jury's still out on the approach taken by XDTE and XDTY).

StatisticalMan

>Start it in 1999 (pre-tech-bubble crash) rather than 1971, because by 1999 your graphs already show a divergence. Then SP500 beats it. Vanguard VVIAX value fund ties the 3-fund portfolio but not SP500 (this is the oldest Vanguard value fund I could find). The S&P 500 does beat it but the 3 fund portfolio had a better RISK ADJUSTED RETURN. Changing the start date to 1999 doesn't change that. The point was you can reduce risk/volatility over S&P 500. It isn't S&P 500 or high dividend fund. There are options which do improve risk adjusted returns it just turns out high dividend funds are shit at it. >SCHD "or any value fund". SCHD is not a value fund. It is a high dividend fund. The irony of quoting BRK-B despite it having a lifetime dividend of zero. BRK-B would not be found in SCHD, VYM, or any high dividend fund. So going back full circle to the beginning. **Picking stocks/MF/ETFS based on the amount of the dividend is dubious.**

StatisticalMan

>I think that by looking at a broad index for your various diversified packages, a lot of what you're capturing is market concentration in a tiny set of tech stocks, combined with their huge success. The magnificent 7 is 18% of VT combined. There are no other holdings that are even 1%. In the hypothetical 75/25 portfolio (which outperformed VYM and SCHD over the life of the funds) that would be diluted 25%. so in a Bogle 3 fund portfolio with 25% bond exposure the magnificent 7 make up 13% of the portfolio value. To be clear a boglehead 3 fund portfolio did fine throughout both the 2000 and 2008 crash. I am not limited in data on that just on an "acceptable" high dividend fund. https://testfol.io/?s=0CvnF71W7Nd Adding international stocks, small cap stocks, and bonds improves risk adjusted return compared to S&P 500. Yes nominal returns are lower but in exchange for lower drawdowns and volatility. Every known high dividend fund WORSEN risk adjusted return. So yes there are options to reduce drawdowns and volatilities it just turns out high dividend stocks are shit at it. > If you think we're in is a high risk bubble, it's a bad bet, and VYM, SCHD, or any value fund might be better despite lower past returns. Then this is just faith. You might as well say my religion requires me to buy SCHD to be faithful.

VeryStableGenius

I think that by looking at a broad index for your various diversified packages, a lot of what you're capturing is market concentration in a tiny set of tech stocks, combined with their huge success. Most of the growth excess was in those stocks. If you think this is representative for the future, your plots might point to the way to a good strategy. If you think we're in is a high risk bubble, it's a bad bet, and VYM, SCHD, or any value fund might be better despite lower past returns. I don't think I'll be persuaded that putting 2% of my stock investments into TSLA and 8% in NVDA is smart on value, though it might continue to be successful on herd-investing grounds. There's a long-tail risk that backtesting doesn't capture. I was around for the 2000 crash, and I remember people's feeling of safety ("It can't go down; where else will retirees put their money?"). Incidentally, put BRK-B into your backtester - it trounces *everything*, despite avoiding many of the big-cap meme stocks. And it is essentially your Boglehead strategy, but with an twist: you have smart people doing market timing for you, shifting between stocks to bonds based on perceived underlying value. During the 2000 crash, it was relatively unscathed compared to the indices. Today, it is 65/35 blend of value stocks and private holdings, and bonds.

himswim28

VYM and VTV would be a couple examples of perhaps similar risk and reward to VOO. But they do reduce their stock value appreciation through paying dividends (2.55% for VYM.) That does help in the first year of ownership for sure, that I am considering. IE I am ready to retire, and have a large gain in BRK that is going to be a big tax event. The nice thing if I take that tax event this year, I can expect to get 2.55% of income next year from VYM that will be in qualified dividends. If instead I go full into VOO now, and pull out that same 2.55% next year, it will have the taxes for any gains from today until that period next year as income taxed gains. Similar will be happening if I decided to move from VYM to a different fund before a year, I will be getting more 2.55% more of the growth in income taxes instead of dividend. This is only advantaged in that I am 55, looking to retire at 56. i can put my IRA into a annuity and get $60k of lifetime income, and this %2.55 can give me $15k a year. which seams like a near perfect amount for retirement. the IRA will be all capital gains. If I can place the annuity for the IRA to be just under $59,800 my capital gains will be all in the 15% bracket.

StatisticalMan

>SCHD & VYM annualized 10 year return has been 9.3% while SPY was 13.5% and QQQ was 14.2%. Over a five year span SCHD and VYM look relatively better (13% return, vs 13.8% for QQQ). On the other hand, Nasdaq (pre-QQQ) was so brutally ravaged in 2000 that it took until 2018 to get your real dollars back (2015 or 2016 in nominal dollars). If you had retired on QQQ in 2000, you'd likely be dead before breaking even, slowly cashing out your retirement at a loss. I think you misunderstood what I meant. I don't me YOLO be as stupidly aggressive as you can. By all that matters is total I mean 10% total return is 10% total return. 10% capital gains and 0% dividends is 10% total return, as is 8.5% capital gains and 1.5% dividends or 5% capital gains and 5% dividends. >Imagine moving $2M of non-401K money into dividend stocks at the age of 62 Imagine moving $2M into a proper diversified portfolio of equities and bonds (not QQQ or SCHD).

VeryStableGenius

> All that matters is total return. SCHD & VYM annualized 10 year return has been 9.3% while SPY was 13.5% and QQQ was 14.2%. Over a five year span SCHD and VYM look relatively better (13% return, vs 13.8$ for QQQ). On the other hand, Nasdaq (pre-QQQ) was so brutally ravaged in 2000 that it took until 2018 to get your real dollars back (2015 or 2016 in nominal dollars). If you had retired on QQQ in 2000, you'd likely be dead before breaking even, slowly cashing out your retirement at a loss. > forced annual taxation on money you don't need and will just reinvest anyways. Zero tax for married couple making less than $94,000, then 15% up to $583,000. This might be a tolerable hit. Imagine moving $2M of non-401K money into dividend stocks at the age of 62, for an annual income of $80K, plus an expected appreciation/income growth of 5%. Your Social Security would push *some* of this into the modest 15% bracket. However, if you had a growth fund instead, then cashing out would be subject to comparable cap gains tax. Dividends are likelier than stock values to hold steady in a downturn, so you're less likely to have to dig into depreciated capital. > To be clear that is not allowed in the US but I would love a VOO/VTI l Sounds like you might want some BRK-B. > However to intentionally pick stocks/MF/ETFS based on the size of the dividend is dubious. The increase in tax drag makes it even more so. Most value funds seem to have paid returns the same 5 and 10 year returns as SCHD and VYM (while paying about 2% dividend). So dividend funds are essentially value funds, so by your argument, if you don't want the income, SCHD and VTV are interchangeable, minus *slightly* smaller tax hit for VTV (2% dividend, not 3.9%). When they deliver 7% *real* growth, pay something like 3% in dividends, which is taxed at 15%, then the total tax hit on returns is 1/10 of the 7% real return, or 0.7%. That might be an acceptable factor for somebody who believes that growth stocks (eg, QQQ) can suffer punishing two-decade crashes like in 2000.

hereforyouanytime

Solid structure — I like the idea of having a 2–3 year bond/SGOV bucket to avoid selling in a downturn. That’s a smart way to smooth cash flow. I’m not retired yet, but I’ve been studying withdrawal strategies, and what I’ve seen from retirees who share their setups is: * Keep **2–3 years of expenses** in short-term bonds/treasuries. * Let equities (VOO/VONG/etc.) grow untouched unless you need to rebalance. * Some use **dividend ETFs** (SCHD, VYM) for a baseline income stream, but most still rely on total return + planned sales. * International exposure helps, but many retirees keep it light (5–15%). Seems like the key is less about chasing yield and more about keeping enough safe assets to sleep at night while equities do their long-term job. Curious for those already retired here: do you lean more toward dividends for peace of mind, or stick with total return + bond bucket strategy

InvisibleEar

SCHD is stupid because it has such a small number of holdings. Buy VYM

LosHuevos69

VYM quickly closing in to my cost basis is a little unnerving.

stockerowl

ETF like VOO, SPY, VT, JEPQ, QQQ, VYM are great options

Maleficent-Fennel250

Personally not a fan of dividends but I do SCHD JEPI JEPQ and VYM

Swan990

QQQ has outperformed VOO long term by a good amount. But has the larger expense ratio, but factoring that still out performs. I'm doing both simply because I don't like my eggs all in one basket. [https://stockanalysis.com/etf/compare/qqq-vs-voo/](https://stockanalysis.com/etf/compare/qqq-vs-voo/) I'm also spreading in VTI & VYM. Has some small cap and dividends are higher. Plus some more in bottom half portfolio of ETFs for energy/utility/financial/small cap sectors.

FFshorty_19

Hello I am looking for some advice for my portfolio. I’m fairly new to investing and feel like I’m missing something or a lot of something. I use Sofi bank to invest and currently DCA every week into VOO and VYM. I also buy BTC every week on another platform. I’m in my mid 30s with Wife and two kids and my goal is to hold these investments until I retire. Hopefully mid 50s. Currently combined gross around 200k-230k/year & live in CA. I only buy smalls amounts currently but plan to increase the amounts in the near future. Is there anything you guys would add or replace/do different. Thanks for the input.

qudiepie

dont worry... you joined during a fed week, market fear time, correction session.... dont yolo everything into one stock... diversify... i see you have about 1k usd, so only invest 10 usd per stock... if you want least risk but still want skin in the game.. throw into a ETF like SPX, VYM, etc.. or some dividends stocks

VeryStableGenius

1. Value funds are trading at traditional or slightly inflated P/E of 17 to 20 or so (eg SCHD, VYM, VTV, BRK-B). This is a 5% to 6% real value-based return. 2. The overall market (SPY) is at 27. This is a 2.7% real return. 3. The difference between them is the hot tech stocks, that are soaking up a lot of investment dollars. So my view is that by stuffing money into value based funds you will enjoy a nearly-traditionally valued stock market, though a crash in the high flyers could percolate down. If you look at [stock market concentration](https://i.imgur.com/5WgdkNd.png) from [this paper](https://www.morganstanley.com/im/publication/insights/articles/article_stockmarketconcentration.pdf), you will see that the top 10 companies make up 27% of the market in 2025, vs 15% in 2015. Market concentration also peaked before the 1990s tech bubble burst. You have to go back to 1960 to find a comparable level of market concentration as 2024. The 1960-1970 period was [stagnant in terms of real returns.](https://bostonportfolioadvisers.com/wp-content/uploads/2022/02/BPA-Commentary-Q1-2022-Chart.pdf), picking up in 1980. So the lesson I choose to get is to invest in value stocks and funds with PE<20, and let other people buy speculative stocks and the index funds that are forced invest in them. Every dollar that buys TSLA and PLNTR is a dollar that isn't driving up the price of BRK-B and SCHD.

EnthusiasticBore

VYM and VYMI got me in + territory this morning.

Mundane-String180

If you’re comfortable with investing all 40k right now then just put it all in right now. If you’re not comfortable with all 40k going in the stock market then dollar cost average it. Also I’m not trying to be annoying or seem condescending but just a heads up SCHD, VYM, and BRK.B aren’t value equities. They are more dividend-focused or large-cap QQQM is NOT broad growth it only has 100 holdings. It’s your choice but SCHG and VOO overlap. (they have the same stocks) To be exact around 50% are the exact same. It has a correlation of 0.94, to explain correlation 1 is the absolute most possible and -1 is the absolute least. A correlation of 1 means they’re 100% identical and -1 means it’s the exact opposite, a correlation of 0.94 means it’s practically identical. You’re better off choosing one and sticking with it. Also you’re already in so much tech you shouldn’t “go into higher risk tech” you’re already in a lot of high risk tech and the stuff you listed is just an overlap. If you have any questions or anything please ask even if you think it’s a dumb question.

RedLegionGaming

I’ve redone my portfolio a bit since then, swapped IJR for AVUV, VIG and VYM -> DIVB/DGRO. Also included some SPMO and SCHG for growth. I like that they’re growth oriented and somewhat more diverse than QQQ/VGT.

rackoblack

I'll try one last example to get the point across. It's important you understand this concept, because his returns may well be 20% or more better than index. One of my oldest holdings is VYM, I've had it since 2016. The gain the broker is showing me on the position is 62%. BUT - The ***only*** whole number shares I have (the ones *I bought myself* and not the dividend reinvestments) add up to 121 shares. My current holding is 203 shares, so 82 of my shares were dividends being reinvested and so are part of my total return. Share count alone, I am up 68%, then on top of that all shares I own (including DRIP shares) are up 62%. Another way to calculate the total return is my original cost basis, which was $9,700 (cost basis of my purchased shares, omitting all DRIP shares). The value of the whole position today is $27,500 for a total return of 285% which works out to an 11% annualized return for those 9 years.

greytoc

How do you define "best non US dividend" fund? There's a lot of ways to cut that question since "best" is very subjective. If you simply want to broad non-US dividend fund - the large AUM ones that I usually look at is FNDF and IDV. There is also VYMI which is kinda like VYM but it's high-yield so it's a bit more aggressive.

Unfair_Yak6796

Whats the best non US dividend ETF? My strategy is to invest same amount of money each week, no matter if the market is growing or falling. Im trying to keep 10/15% on bitcoin and the rest on etf. I ve already invested in VTI and QQQ. (I ll keep on doing that) But now i want to allocate 20% of my investment to a Dividend ETF. To get that passive income that will be re invested. I dont want to buy SCHD, VYM, SPYD because they are highly correlated to US market that im already invested in (QQQ AND VTI)

MidRivFLL48

These have been good ones, too: VTI, VYM, SHYL, AGG, QQQ, and SCHD. Thoughts?

Caterpillar69420

In my 401k retirement account, I have almost 50% in VGT equivalent (VITAX) then some VYM/VIG equivalent since i dont know which is better so I have both equally. They should smooth out down turns About 15% in money market fund so i can "buy the dips". I don't have VOO. I think tech will carry the market. But they drop fast too, just look at April 2025. Make sure you can handle the "loss". VGT was down almost 25% in april.

rackoblack

VYM is a great option. MLPX might help diversify you.

rackoblack

Are you *trying* to get extra tech heavy? VOO is already quite tech heav. I'd rather see any (or several) of * a REIT ETF (I have O, CCI, STAG, EPR and AMT - no residential mortgage stuff tho) * maybe 5% VXUS * some VYM But really just all in an index fund is fine, as well.

Caterpillar69420

VGT VIG VYM. Not equal weight.

RadiantRecord1413

Late to the party - but I'm traveling. FIRST - OP should ask their employer if they can just pump that money into their 401k automatically so they never have to touch anything. BONUS points if the 401k has an employer match. Now back to VOO vs VYM - You are welcome to trade however you wish, but I'm surprised that my initial reply got as many downvotes as it did. VYM is a Vanguard fund that focuses on a roughly 4.5% dividend yield. VOO and VYM are two different market strategies by Vanguard. No one knows which one will do better in 25+ years. We're all guessing. For what it's worth, I have both in my portfolio. I aim for dividend reinvestment because it's how you grow very long-term. For a trader who isn't as experienced, blue chips and other ETFs are comfortable, and DRIP-ing the dividends puts it on autopilot so you don't have to look at it often. That's what I'm saying. It sounds like OP specifically benefits from DRIP, but not everyone does. I DRIP my MSFT shares because I'm bullish in the long-term, but I would NEVER use DRIP on my SOXL shares because it's a 3x leveraged ETF. I don't think OP has any interest in SOXL though, so not to worry!

PutItOnTheRitz

Blown away by the variety of combos here, some of you are going full tilt with IBIT and QLD, others sticking to the classics like VTI and VYM. I’ve actually been curating Top 10 ETF lists by theme (dividend, growth, international, etc.) to make it easier to build combos like this. If anyone’s looking for mix and match ideas, I’ve got the lists up at impartoo dot com — ranked, clean, no clutter. Always open to ETF combo debates if anyone wants to swap thoughts.

Ace-0987

VOO (slightly lower risk than VTI) VYM (stable, lower risk) IAU (hedge, strong historical performance)

Cruian

>Say you're starting completely fresh and want to keep your investing simple, diversified, and long-term focused. You only get to pick three ETFs. Which do you choose, and how would you balance them? >I’m trying to find that sweet spot between growth, income, and risk management. For example, you could go: >VTI (total market), VXUS (international), and BND (bonds) for a broad mix This fits your needs then. >Or maybe a more aggressive trio like QQQ, SCHG, and JEPI How is this more aggressive? You may be mixing up realized recent returns with expected future returns. "Growth" as a style tends to under perform in the long run. Factor investing starting points: * https://www.investopedia.com/terms/f/factor-investing.asp * https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) * https://www.cbsnews.com/news/the-black-hole-of-investing/ * But be aware that factor premiums can take a while to show up: https://www.reddit.com/r/Bogleheads/comments/1hmbwuw/what_every_longterm_investor_should_know_about/ * And from GwenRoll: https://www.reddit.com/r/ETFs/comments/1krd3fe/growth_does_no_one_know_what_the_hell_it_means/ >Or something income-heavy like DIVO, VYM, and a REIT like VNQ Why focus on income? It comes at the expense of share price. >What’s your 3-fund recipe? Curious how others think about diversification when forced to stay lean. https://www.bogleheads.org/wiki/Three-fund_portfolio Each "fund" has a specific role and helps with diversification: they don't overlap, and since uncompensated risks (like single country), give exposure to compensated risks (emerging and possibly smaller caps), and let's you adjust the safety by assisting the amount of bonds/similar.

RadiantRecord1413

I also like $VYM for high dividends. OP should always “DRIP” the dividends too.

First-Finger4664

Sitting in cash right now isn’t a terrible idea if you need the money over the short to medium term, except that high inflation is on the menu this year with a small chance of runaway inflation if the federal reserve is seen to lose its independence (eg by Jerome Powell being replaced with someone who immediately pushes for big interest rate cuts). You would be better off, IMO, diversifying some portion of that morning into other conservative value-generating assets (SCHD, VYM/VYMI, maybe an international bond or real estate fund) and also consider some smaller 2-5% allocations to alternative assets like gold or PDBC. This diversification, even if it’s done with small allocations, can meaningfully hedge against unlikely but dangerous scenarios like hyperinflation, stagflation, etc, while not worsening and possibly improving your returns in the base-case scenario

Present-Rooster574

CORE GROWTH - DIVIDEND SATELITE  70% CORE  VTI:30% QQQM:25% VXUS:15% 30% DIVIDENDS  15% VYM:10% DGRO:5% Bond market coverage  10% schb or vti  International exposure  5% vxus  Real estate exposure  5% vnq**and add gold and silver etf tooo in it - they double in every 5 years also**

rackoblack

I've never wanted a rental income property. It works out to a second very poorly paying job. Definitely get out of both. VYM is rated a bit higher than SCHD just now. VT is a great option too unless you want the higher dividend for spending.

homestead_sensible

VTSAX is aboot 30% of portfolio followed by VIG which probably makes up 15%. i have some VYM i purchased before i understood basis. (all approximations) i also have ET, KO and a few petrol stocks. I generally avoid REITs just because I worknin housing, so understand risks and profits, cycles & volatilities involved. I feel I'm deep enough in real estate since 100% of my income is from property management. not a rebuttal. I'm all ears. just expanding on topic.

First-Finger4664

I personally think VYMI is the sleeper pick right now, trading at nearly half the forward P/E of VYM or SPLV. It may be international equities but they’re all huge global companies just like the S&P 500, just valued much closer to historic means.

Wilecoyote84

59% of its holdings are in 10 stocks. Right now several of those are down or sideways. CVX. HD. COP. VZ. Also, SCHD only holds about 100 stocks. This is why I prefer VYM.

Just_Candle_315

I like to spread out risk I lost almost fucking everything in the dot com crash so being in BND, VNQ, VYM in addition to growth to smart. Between 2000 and 2015 QQQ was fucking worthless as a growth asset. It's only been since 2016 it's gone nuts. People forget this.

First-Finger4664

Those 3 funds are more or less the same thing (VTI is weighted by market cap, so it is largely composed of the stocks in VOO/SPY), so just pick one of them. After several years of historic returns, the US market is severely overvalued and poised for a decade of poor returns (i.e. a big crash followed by a return to more normal growth). You would do well to put some money in something like VEA or VIGI (international large cap growth/blend) or VWO (emerging markets) so that your portfolio better weathers a downturn. Investing in lower-performing but lower-volatility equities, and regularly rebalancing between them during downturns, actually leads to *better* long-term performance - you can do some simple backtesting online using different mixes of VOO, VYM, and VIG to convince yourself this is true.

Viking999

Most of it's companies aren't rate sensitive.  It isn't a reit. It sucks because they avoid tech.   VYM has outperformed by a lot for me because the top holding is Broadcom.  SCHD does hold Texas Instruments but it hasn't fared as well.

wonderboy2402

I am DCA equal split evenly in VOO/VUG/VYM every week.

marioacastiello

I would hold your current VOO and slowly invest in other single stocks/ crypto. I hold VOO+FXAIX+VYM mainly and a smaller portion of my portfolio I buy single stocks & crypto

dukerustfield

I had VYM for ages. And then I finally realized I wasn’t getting anything out of it. Not even decent dividends. so just be rational.

EnthusiasticBore

VYM and VYMI. Buy and hold.

whatamidoing8000

I definitely want like 70-20-5-5 in my Roth (VOO, VXUS, and Growth like VUG and then something like VYM, SCHD or QQQM) For taxable: 50% VTI and 5% dividend (SCHD) The rest: Tesla, Meta, Google, Uber, TSM, Microsoft and NVIDIA. I know VOO/VTI will be better in my Roth so it’s mostly for once I hit the limit on Roth.

whatamidoing8000

Thank you! I’ve heard a lot about VYM, SCHD and QQQM. I might pick one or maybe all 3. Ill see which has the most growth potential

bleezerfreezer

Agree 100%. For OP - some of the dividend funds I suggest for your Roth: VYM, VIG, SCHD, DGRW, DGRO, VNQ, QQQ. My favorite is SCHD. Great yield + growth balance, strong total returns. Its made me a ton of money.

rackoblack

Is this in taxable or IRA? VT for total world market. SCHD or VYM or similar for some defensive div plays. MLPX has good non-FAANG exposure that's got a good return (high div, best in IRA) O - Realty Income is still a solid five star buy at this level and gives you good diversity from the usual VT/VOO/VTI. Again, has high div returns. Eat the tax in taxable or buy this in IRA.