What ETF is better than SCHD? (2024)

What ETF is better than SCHD?

SPHD: Which Dividend ETF is Better? The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) and the Invesco

Invesco
Invesco Ltd. is an American independent investment management company that is headquartered in Atlanta, Georgia, with additional branch offices in 20 countries. Its common stock is a constituent of the S&P 500 and trades on the New York stock exchange.
https://en.wikipedia.org › wiki › 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%.

Is Jepi or SCHD better?

The JPMorgan Equity Premium Income ETF (JEPI) and Schwab U.S. Dividend Equity ETF (SCHD) are popular options for dividend investors. JEPI offers lower volatility, higher dividend yield, and better risk-adjusted returns compared to SCHD.

Is SCHD still a good investment 2023?

SCHD didn't set the world on fire in 2023, with a total return that lagged that of the broader market by a significant margin. But for long-term investors, SCHD still looks attractive.

Should I hold SCHD long term?

SCHD's long-term track record of double-digit annualized returns over many years also inspires confidence that this is still a good place to be in the long term. Lastly, SCHD's expense ratio of just 0.06% is extremely favorable for investors, making this a compelling ETF to own in 2024 and beyond.

What is the best high dividend ETF?

6 Best High-Dividend ETFs to Buy for 2024
ETFAssets under managementTrailing 12-month dividend yield
iShares Mortgage Real Estate ETF (REM)$636 million9.5%
BlackRock Floating Rate Loan ETF (BRLN)$21 million9.1%
Global X S&P 500 Covered Call ETF (XYLD)$2.8 billion10.9%
SPDR Bloomberg High Yield Bond ETF (JNK)$8.9 billion6.4%
2 more rows
Jan 22, 2024

What are the disadvantages of JEPI?

One reason why JEPI is not a great choice for retirees is that its 0.35% expense ratio is rather high compared to many other passive income funds. For example, SCHD's expense ratio is only 0.06%. While over a single year, 0.29% does not seem like very much, throughout a long period that amount can add up.

Should I buy JEPI and SCHD?

Bottom Line. SCHD and JEPI offer a convenient way for investors to access the equity market, diversify their portfolios, and generate steady income with low volatility. Both of these ETFs offer lucrative yields and carry a low expense ratio, which is positive.

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 VYM better than SCHD in 2023?

Gold-rated Vanguard High Dividend Yield ETF, ticker VYM, performed slightly better than SCHD, but only slightly. Its total return over the first 11 months of 2023 stood at just 0.91%. VYM fell behind for the same reason as SCHD.

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.

Should I invest in SCHD or VOO?

If you want to optimize for dividends and share growth, SCHD would be a good choice for you. If you want to optimize for share growth from the overall U.S. stock market, VOO would be a better choice for you. There may even be room to add exposure to both, depending on how you want to build out your portfolio.

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%.

What ETF has 12% yield?

Top 100 Highest Dividend Yield ETFs
SymbolNameDividend Yield
QRMIGlobal X NASDAQ 100 Risk Managed Income ETF12.18%
YYYAmplify High Income ETF12.17%
EWTiShares MSCI Taiwan ETF12.03%
GOOYYieldMax GOOGL Option Income Strategy ETF11.93%
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What is the best dividend ETF 2023?

Wining ETFs in Focus
  • SPDR S&P Emerging Markets Dividend ETF EDIV – Up 37.7%; Yield 4.39% annually.
  • First Trust NASDAQ Technology Dividend Index Fund TDIV – Up 36.2%; Yield 1.68% annually.
  • Nationwide Nasdaq-100 Risk-Managed Income ETF NUSI – Up 30.4%; Yield 7.05% annually.
Dec 21, 2023

What is the highest performing ETF?

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
QQQInvesco QQQ Trust Series I21.63%
IGMiShares Expanded Tech Sector ETF21.56%
PTFInvesco Dorsey Wright Technology Momentum ETF21.38%
QTUMDefiance Quantum ETF21.18%
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Why is JEPI bad?

However, it is important to note that JEPI is not a safe ETF by any means. A covered call strategy can buffer against losses, but only to the amount of premium received. It is not a true hedge, and still exposes investors to more or less the same downside risk.

What is better than JEPI?

SPYI is more tax efficient than JEPI and is run with a goal of maximum income but also some capital appreciation (like DIVO has accomplished so far).

Why is JEPI so popular?

Some of the main reasons investors are interested in JEPI include: High yields: JEPI is designed to deliver 5% to 8% yield over time but has reached yields above that range. These yields are much higher than traditional dividend ETFs, which typically produce half that of JEPI's yield.

Is JEPI safe for retirement?

The risk with those is that if counterparties default on those contractual obligations, JEPI can blow up. In other words, those who think they can safely buy 100% JEPI and retire rich are taking on much more income risk than they believe, especially if they think JEPI's income will keep rising yearly.

Is JEPI good long term?

According to analysts, JEPI is a good investment for investors who want to reduce the volatility of their portfolio without compromising returns. An ETF like JEPI, in moderate amounts, can be a good choice for sophisticated investors, retirees, and those following the FIRE movement.

Can you live off JEPI?

If you're an investor seeking immediate cash flow, JEPI may be an excellent choice. The fund is designed to generate consistent monthly income, making it an attractive option for those looking to live off their investments.

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 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 to pair with SCHD?

The other ETF to pair with SCHD is the ProShares Bitcoin Strategy ETF (BITO), which is the only Bitcoin-focused fund in the market today. While this fund tracks Bitcoin futures contracts, it tracks the overall Bitcoin performance.

Is moat better than SCHD?

Over the past 10 years, MOAT has outperformed SCHD with an annualized return of 13.09%, while SCHD has yielded a comparatively lower 11.55% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.

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