Should I invest in SCHD or VOO? (2024)

Should I invest in SCHD or VOO?

Both funds are excellent, low-fee options for your portfolio. SCHD prioritizes dividend income and has a higher yield. VOO also pays a dividend, but its dividend will always be smaller (lower yield). VOO is better diversified, while SCHD has more holdings concentration risk.

Is SCHD a good long term investment?

Long History of Strong Returns

Zooming even further out, SCHD produced an impressive double-digit annualized return of 10.5% over the past 10 years. Going back to its inception in 2011, the fund has generated an annualized return of 12.6%.

What ETF is better than SCHD?

SPHD: Which Dividend ETF is Better? The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) and the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) are two popular dividend ETFs from leading asset managers. With a dividend yield of 4.5%, SPHD's yield is higher than SCHD's dividend yield of 3.5%.

Does VOO and SCHD overlap?

You can get quick but very clear view of how different the portfolios of SCHD and VOO are simply by looking at their respective top 10 holdings, which perhaps surprisingly for two US large cap ETFs, have ZERO overlap. The top 10 components of SCHD make up about 40% of the portfolio, while the top 10 of VOO make up 30%.

Why is SCHD so popular?

The biggest driver of investor interest has been its strong and consistent track record. On an annual basis, almost like clockwork, SCHD has performed in the top 1/3 of its Morningstar category and had done so far a decade straight. That is, until 2023.

Is it smart to invest in VOO?

The Vanguard S&P 500 ETF (VOO 0.57%) is one of the most popular investment options for index investors. And with good reason. Its low expense ratio and strong track record of tracking the index make it a great option for those simply looking to match the S&P 500.

Is SCHD expected to go up?

What is SCHD's average 12-month price target, according to analysts? Based on analyst ratings, SCHD's 12-month average price target is $82.91. What is SCHD's upside potential, based on the analysts' average price target? Currently there's no upside potential for SCHD, based on the analysts' average price target.

What's the best ETF to buy right now?

7 Best ETFs to Buy Now
ETFAssets under managementExpense ratio
Invesco QQQ Trust (ticker: QQQ)$244 billion0.2%
VanEck Semiconductor ETF (SMH)$14 billion0.35%
Consumer Discretionary Select Sector SPDR Fund (XLY)$19 billion0.09%
Global X Uranium ETF (URA)$3 billion0.69%
3 more rows
Feb 2, 2024

Why is SCHD underperforming?

Investors are bidding up riskier assets on the belief that the economy is in good shape and will be yet for a while longer. That's put more defensive asset classes, such as dividend payers on the back burner. That has made SCHD not just an underperformer but a severe underperformer.

What is Vanguard equivalent of SCHD?

Overview
SCHDVYM
IndexDow Jones U.S. Dividend 100 IndexFTSE Custom High Dividend Yield
Index DescriptionView IndexView Index
Expense Ratio0.06%0.06%
IssuerCharles SchwabVanguard
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Should I buy SCHD or VYM?

SCHD price and total return (including dividends) has outperformed VYM over a ten-year investment horizon (see chart below). Past performance is not indicative of future returns. VYM is better diversified, while SCHD has more holdings concentration risk. VYM has four times as many holdings as SCHD.

What should I pair SCHD with?

The challenge for BITO is its high expense ratio of 0.95%. This explains why the recent spot Bitcoin ETF applications by companies like Blackrock and Invesco are so important. Therefore, a combination of SCHD, SCHG, and BITO will provide both regular income and long-term growth.

How often should you rebalance your SCHD?

As such, this approach gives the fund a modest large cap tilt and excludes REITs entirely. Individual securities are capped at 4% and sectors capped at 25% of the portfolio. Its overall composition is reviewed annually, while the portfolio is rebalanced quarterly.

What ETF doubles the S&P 500?

These include Gabelli Growth Innovators ETF GGRW, Invesco S&P 500 Momentum ETF SPMO, iShares MSCI USA Momentum Factor ETF MTUM, Franklin Focused Growth ETF FFOG and Invesco Large Cap Growth ETF PWB.

Why is SCHD struggling?

My 2023 Recap

Year to date, the fund has demonstrated a price & total return of -0.55% & -3.91% respectively. Needless to say, it's one of those tough years for SCHD driven by cyclical economic downward pressures like inflation and high interest rates.

Is SCHD high risk?

Schwab US Dividend Equity ETF™ Risk

Ratios above 1.00 indicate higher risk than average. Schwab US Dividend Equity ETF™ has a below average total risk index of 1.09 because of its standard deviation of 16.3%.

Is SCHD good for retirement?

Buying and collecting SCHD in a pension account can be a good strategy due to the tax benefits and the difficulty of selling the investment, making it a potentially profitable long-term option. "Collecting dividends steadily, regardless of the ranking, can lead to great profits in the future."

What ETF does Warren Buffett hold?

Most of Warren Buffett's portfolio through his holding company Berkshire Hathaway is comprised of individual stocks. He does own two ETFs, though, both of which are S&P 500 ETFs: the Vanguard S&P 500 ETF (VOO 1.03%) and the SPDR S&P 500 ETF Trust (SPY 1.05%).

What is the future value of VOO?

What is VOO's price target? The average price target for VOO is $499.50. This is based on 505 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $591.36 ,the lowest forecast is $409.86.

Is VOO a good investment for beginner investors?

VOO is also notable for its low cost. With an expense ratio of just 0.03%, it costs only $3 per year for every $10,000 invested. This low fee structure is a significant advantage, as high fees can erode investment returns over time. Investing in VOO can be as simple as buying and holding.

Does SCHD pay monthly?

Schwab US Dividend Equity ETF (SCHD)

The dividend is paid every three months and the last ex-dividend date was Dec 6, 2023.

Does SCHD pay capital gains?

This caused investors who were investing for income to bid up the prices of those quality dividend stocks, which are what SCHD invests in, so that they not only received a higher income yield, they saw gratifying capital gains.

What is the average return on SCHD?

Schwab US Dividend Equity ETF (SCHD): Historical Returns

In the last 10 Years, the Schwab US Dividend Equity ETF (SCHD) ETF obtained a 11.56% compound annual return, with a 14.49% standard deviation.

What will SCHD be worth in 2030?

Based on historical data and a widely accepted formula, the Finance Professor predicts that SCHD's price per share will double by 2032, reaching around $115 to $120 by 2030.

Is SCHD a buy hold or sell?

Is SCHD a Buy, Hold, or Sell? Based on SCHD's technical indicators, SCHD is a Strong Buy. What is SCHD's RSI (14)? SCHD's RSI (14) is 57.65, which suggests SCHD is a Neutral.

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