Move Over SCHD, I Am Buying This ETF Instead
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- čas přidán 21. 04. 2024
- SCHD has long been a dividend favorite amongst the dividend community. However, after the latest reconstitution, although I still like SCHD, I just believe the dividend growth will slow.
As such, I will be casting my eyes on another Dividend Growth focused ETF that I believe has some better growth potential as well as faster dividend growth trends moving forward.
Take a look at today's video and let me know which of these 2 ETFs you prefer most.
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Which ETF do you like better?
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VGT outperformed SCHD and VOO over 5 and 10 years. Despite having most of my $500k retirement in VGT, I try to beat my Roth with my taxable account but still underperform the S&P 500.
I'm taking a hybrid approach with VGT, SCHD, and VOO as my foundation over a 20-year horizon. I still enjoy life, travel, and buy what I love. It's the best combo, plus I enjoy the small victories of dividends, dividend growth, and share price appreciation.
ETFs are great, but don't rely solely on it for retirement. I retired at 62 with a $1.5M portfolio, starting with $35K, thanks to an adv1sor and dividends. Invest wisely, build your nest egg, and don't sell the chicken that lays the egg!
Who is this person guiding you and how can i reach he/she?
I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Amber Dawn Brummit" I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I'm sticking with SCHD, as I already have high exposure to technology.
Same here I’m holding SCHD to diversify from growth
Yep!
same here; higher yield schd and regardless of DGR on some in VIG the yields are microscopic
Luv the ETFs. I own both SCHD and DGRO. SCHD is one of my cores in the managed portfolio.
I also own VPU (utilities ETF), AMD tech but I also own an individual utility company like DUK.
Sounds like you are absolutely crushing it. Great work!
How effective is your managed tradings with this lot and which stocks should I consider on my fidelity.
Stocks is not only about anticipating moves based off trends but anticipating through participating behind real top performers and attain how they execute perfectly.
coach Frost hilda take great care of my holdings giving me an edge to successful interest.
l've been getting suggestions to use a proper enlightened top tier, similar to your viewpoint.
I’m trying to figure out your selected holdings at the moment
I've had majority of my holdings in ETFs, tech stocks and I've had 65% increase in my portfolio, especially with Nvidia, AMD P/E (price to earnings ratio) adding few others, Feel free to imitate my steps with a top performer.
As a retired person going to disagree, funds to pay bills now more important than growth in the future. Younger person go for it.
I’m 64 and still working and love SCHD. Have other Div payment ETFs. Also have some of our portfolio in QQQM Msft Google Amzn to keep some growth for the future
Yup,. I use, ETF / CEF's like,.. ETY, EXG, CSQ, ETW, HTD, UTG and ETV to "Pump Out",. NICE Monthly Dividends, THEN, Buy the DIP's with, the Cash for,. Portfoilio Wealth,.. "Compounding" !
@@douglash.8862 I feel like CEFs are not talked about enough if you are already retired. Picking the good ones is a challenge though. The high yields can eat into the NAV if you are not careful. I like USA - Liberty All-Star Equity with a 10% yield. You have to be able to handle volatility in the NAV though. There are other CEFs that pay nice monthly distributions. Pimco bond funds are an example (PDI, PMO, PAXS), which yield 10+%, pay monthly, and generally do not erode the NAV if you buy at historically high discounts. These would be a good addition to a ROTH portfolio to avoid the ordinary income taxes of bond funds.
@@douglash.8862not heard of one of those!
I plan on living off dividends so Schd’s 3.5% yield is a better fit for me. Schd’s top ten holdings are nothing to brag about but they all grow their dividends every year as well.
I’m getting 5.27% sitting in cash
@@wread1982 For how long? Money market yields are for one day.
@@wread1982 and I got over 20% returns over the past year sitting in stocks...
@@wread1982that is a good short term solution. But for anything more than a couple years, you really miss out on growth by just sitting in cash.
I've got over 550 shares of SCHD, so I am going to continue with it. I complement it with solid positions in VOO and SCHG.
Same.
SCHD is slow and steady! I like my money slow and steady, hate spikes! The way I grew my money was 50/50 SCHD/VGT!
Solid split, although I prefer QQQ over VGT due to VGT's lack of exposure to the likes of META and GOOGL, but still a good ETF nonetheless
well done
I hold SCHD, VGT, and QQQ
I got schd qqqm smh
@@jollamait seems to be a very common choice among income investors
Hi Mark! I just started following your channel. I really like your content and the fact that you're an accountant is refreshing. Because accountants don't buy the hype they buy the numbers. I own both SCHD and VIG. I bought VIG for the reason that you suggested. Thanks for the great content!
Mark thanks for the video. Definitely like the top 10 holdings. My 2 cents. VIG is a good large cap blend fund but I hold SPY for that. SCHD is my large value holding. I do agree that sCHD dividend growth seems to be trending down so I’m adding some DGRO which is also a large value fund. As far as VIG. I have plenty of tech like AVGO and MSFT in QQQ. And I hold individual stocks in others. I don’t tend to change ETFs based on short term performance or stock selection. If you hold passive ETFs you have to good with the methodology.
Love your work man keep it up!
I so agree with you on SCHD. Thank you for making this.
I think technology is a primary reason why in recent times SCHD has underperformed its peers. But I don’t think that trend will continue over the next 10 years as much as others assume it will.
Like always, great video. I prefer SCHD. If you compare the two, SCHD outperforms VIG for about 50 bps, which is not a lot, but it also has a higher dividend yield if you want/need income. I think they compliment each other, but not a replacement for one another.
Schd will always be a winner then now and future in dividends
@@blackberry_700 even now that Broadcom is booted?
good research Mark
I can never catch a break in the stock market. I was up by nearly $4000 but I regret not selling sooner. Sometimes I think I am too impulsive and sometimes I think I'm not fast enough. The market is too volatile.
It's frustrating to be up by nearly $4000 and then see it disappear. The stock market can be so unpredictable and volatile, it's easy to feel like you're constantly second-guessing yourself. It's tough to know when to sell and when to hold, and even tougher when you feel like you're missing out on potential gains or taking unnecessary losses. It's a constant rollercoaster of emotions.
You're not alone in this, Jackson. Many investors face the same challenges and frustrations as you do. It's just part of the game. But it's important to remember that with the right mindset and strategy, you can improve your chances of success in the market.
If you're finding it tough to make buying and selling decisions on stocks, you might want to consider working with an experienced financial advisor or mentor. They can help you develop a strategy and provide expert guidance on when to buy and sell. I personally work with an expert who has helped me make high profits. If you're interested, feel free to do some research and find a financial advisor who can help you achieve your investment goals.
This is definitely considerable! Think you could suggest any professionals or advisors I can get on the phone with? I'm in dire need of proper portfolio allocation.
RPC Wealth IAF is an advisory Firm that I have worked with. If you search for her name online, you will find all the necessary information to contact and set up an appointment.
I have invested a good part of my portfolio in VGT, so for me, SCHD works better than VIG. I own VIG too, but not much less than SCHD. Nice video.
Thanks for the comparison. We are eyeing dividend ETFs as starting to buy into them as we are approaching retirement. We love the strategy of dividend income in retirement. We are currently total return investors currently but we are planning on moving into dividend investing rather than bonds in retirement.
Ha just added schd this morning after looking at it for years
Both are great but SCHD is always my favorite
Mark, thanks for the great video. I'm curious what resource you use to get an ETF's Dividend Growth Rate (CAGR) over various time frames?
Mark, what do you think about TGVG compared VIG?
SCHD just declared largest dividend ever in June payable July 1. $0.824
I liked Bristol Myers inside SCHD. But VIG is a nice option to consider
Take a look at USFR.
Thanks, Mark, for your interesting critique on SCHD, and your bull case on VIG. While I am long SCHD, I will take another look at VIG. However, VIG's dividend yield is pretty low for my purposes as a retired 72 year old investor. I can see the merits of investing in VIG for its dividend and capital gain growth potential especially for younger long-term investors. Good stuff!
I think you really hit on something here David. 1.8% is not enough to live on unless you have millions of dollars invested. Now I predict that you and I will live to 100+ so we’ll always need some growth, but I see VIG as a complementary piece to SCHD not a replacement.
I think I‘ll simply do 50/50 SCHD and VIG.
AVGO has paid my biggest home repair bills so far this year.
What do you think of CPSM ETF?
Good Day!
Thanks for watching Matthew
SCHD is still the best. VYM, DGRO all decreased their yield this year. I would not include VIG just because it outperformed slightly SCHD. VIG has so many growth stock which lacks in dividend payment. I would rather add more VOO, VTI or SCHG and not VIG while continuing adding more SCHD.
When the price goes up the yield goes down….
This
Capital appreciation... look at the total return, not just yield. Microsoft increases its dividend every year but ield rarely goes up as stock appreciates.
Consider the growth companies included? They are big holdings in Berkshire as well. Not your typical flash in the pan growth corporations?
I hold both SCHD and VIG. I'm holding my position in SCHD and actively dollar cost averaging my position in VIG. Both are smaller than my positions in VGT, VTI, and IVV though.
I’ve never been a SCHD investor. VIG has been my choice because of their top positions. Beats SCHD. Will continue to do so
Hey mark, thanks for your videos!
In your opinion, do you think VIG or VOO is a better ETF for price appreciation over the next 20 years?
VOO. Can't go wrong with a straight S&P 500 etf. My primary 401k is S&P 500 and I put a little side money into SCHD.
Wow, I guessed you would VYM... that's a great income fund for me.
In my opinion, VIG is loaded with magnificent seven and tech exposure. At some point, the overvaluation will revert to the mean. I equate VIG to VOO. SCHD is a different etf.At some point, value will rebound.
Interesting, definitely something to think on, will likely be removing SCHD from the watchlist, those seem like counterproductive moves for sure
What do you think about BLNK?
what about the newer CGDV ETF ran buy Capital Group?
CGDV expense ratio is a little high, 0.33% compared to VIG, 0.08%.
how do you compare drgo vs vig
VIG is a core holding of mine. Solid investment 👍💰💰💰
Should I first fill the Roth with schd or just keep adding in my taxable account for next 20 years ?
SCHD is held in my Roth IRA
Where can I invest into these dividends
Great video. Thanks, Mark! I'm curious what your thoughts are when you feel like you get betrayed by an ETF like SCHD. You were close. :) Do you still see a lot of value in SCHD? Are you selling, or just compensating around it? It would be fun to see a Jerry Springer episode coming up.
VOO, QQQ, AVLV is all you need.
Not opposed to either. For growth, which seems to be coming mainly from tech over the past few decades, I'm in other combinations of stocks and ETFs. SCHD may be a useful alternative to aid in diversification into value.
Next 12 months? Should be looking at what the div payment would be in 12 years. SCHD starts out at almost 3.5 percent while vig is 1.83 %. While they might go toe to toe on total return, what will the monthly div hypothetically be in a long time in the future. How many years would it take for VIG to surpass schd monthly or quarterly dividend. it would probably would never happen. I would have to sell shares of vig.
I think the addition of BMY was to try and capture a run up and less about dividend growth. Not happy about the removal or Broadcom either, but I think that was the logic there. BMY was/is potentially undervalued. So it’s more of a growth move that a divided play. We’ll see, hopefully we’ll be getting better yields than last year
I’d like to see your thoughts on JEPQ & JEPI??
I hold both JEPI and JEPQ. JEPQ seems to be performing better than JEPI. Just my 2 cents! Cheers!
Most of my equity is in VTI, which seems to overlap a lot with VIG. Would you still recommend VIG in this situation?
100% agree regarding AVGO! Actually, I was very disappointed .... AVGO has been a true winner over the years
So you like AVGO better than DGRO, DGRW, and VIG?
@@hogue3666 AVGO (Broadcom Inc) was one of the most dominant and dividend-growing stocks in SCHD (#1). The algorithm of SCHD kicked AVGO out.
I'll stick to SCHD. I have plenty of VOO in my IRA (with 30% returns on it), so I'm reinvesting those dividends into SCHD now. By the time I'm ready to retire in 20-30 years I should be sitting pretty.
I like DGRO
At just after the 5:00 mark, you said the correct thing. VIG "compliments" SCHD. The headline makes it sound like you are replacing SCHD with VIG. Couldn't disagree more. The simple fact that MSFTand AAPL are the top holdings in VIG, proves that it is not a dividend focused fund. As a retiree, I don't want to wait 20 years for the yield of VIG to be sufficient.
If you look at SCHD’s 5, 10, and Max charts, it has been trending upward since inception, and continues to do so. I’d pick SCHD every day of the week, especially if I need a rock solid ETF and my living depended on it.
I hold VOO, SCHD, and QQQM. I just don't see a reason to swap SCHD for VIG since VIG weightings are much more similar to VOO.
Same here
Same here
My new favorite is FEPI.
Even with a better DGR, the difference is not significant enough for VIG to catch up to SCHD's yield anytime soon. In fact, it would take decades. Additionally, you're not taking into account that SCHD makes adjustments every year. So while we may not like the moves that were made this year, they might make better moves next year.
If compounding is important, isn’t getting the compound snowball early in investing important? So having 25 years of compounding dividends is better?
It is but the market grows faster than compounding and if you are young waiting for your small account to compound to something meaningful it is likely to be a decision one regrets if they didn't diversify focus on growth as well. Best just not to have all the eggs in one basket but a balance based on acceptable risk for the individual.
I would like to know which would better (VIG or SCHD) over the next 20 years (versus the next 12 months) to just buy and hold for dividends and growth, and not have to worry about jumping in and out of when something better comes along - - seems they both have the same expense ratio I think 0.06% . I also already own VOO so plenty diversified there
After researching and buying individual stocks over the years, it just so happens that several of mine are in the core holdings of VIG. I still have over 400 shares of schd but I stopped adding to it. I’m continuously learning and trying to do better so my investments are subject to change. I’m primarily buy and hold but when I dollar cost average sometimes it goes to different stuff. Some of my investments have done really well and I wish I bought more. I’ve been pretty disappointed in schd lately though.
NVDA
I prefer the not so popular DIA over SCHD, DIA has stood the test of time imo
Hello i am following your channel and recommendations about the ETF with dividends … i am 52 years old and looking to invest to prepare my retirement probably in the next 15 years … so i was going to invest probably 100K$ and i would like to ask you if in your opinion should i diversify between 40% SCHB + 40% Vanguard + 20% Bonds is a good strategy? Thanks in advance i know you are not financial advisors but just want to know your opinion? And thanks for your channel to help us
VTI?
Very diversified, but too diversified for me
I prefer monthly dividends over quarterly. Both are great funds though.
Gotta love monthly income. You can time different quarterly payments to where you are getting paid from one source at least every month
I agree, it just fuels your desire to save more and spend less, when you have them coming every month. Like VIG from this video. Also I would advise pulling up every chart and multiplying out the dividends to calculate your own yield. YF is often showing too low a number. They show 3% for SCHD so I was running around asking on videos, why invest for that low a payout? Wish I had adding together all those monthlies from the chart. thanks.
@MarkRoussinCPA That's a good strategy for people who don't know how to budget month to month. IOW, people too stupid to manage their investments.
I would say they clearly they have some knowledge which is why they made that move
I have equal shares of SCHD and DGRO (because they complement each other very nicely with almost no overlap) and a smaller share of QQQ. The rest is in a treasury ETF and a corporate bond ETF. I’m recently retired so my portfolio isn’t overly exciting now.
SCHD 16.38 followed by DGRW 16.22 followed by VIG 14.73 when yield is added to 5yr CAGR. Tech has outperformed and is due for a reversion to the mean.
I buy vig and schd only a 10% over lap They were made for each other
Surprised the choice wasn't DGRO. That's my favorite.
I still prefer SCHD because of the higher yield 3.5 vs 1.8 of VIG. Yes it's slower in growth than VIG because of lack of technology. However, that's the point of having something like VOO, QQQM or VGT as a growth ETF beside SCHD. Each will do their own business. VIG is good if it is the only ETF in your investment portfolio (FYI, VOO has a 1.4 dividend yield ,, not far from VIG).
4:01 *The Vanguard Dividend ETF (VIG)*
I hold SCHD, VIG, and VYM because I didn’t want to pick between one or the other
That is absolutely great advice. Why pick just one..
@@thewilder-side2990 If you don’t mind overlap and making your portfolio look more complex then sure it’s adequate advice
Same at 60/20/20 respectively among my dividend ETFs.
VIG is fine if you’re not already exposed to the technology sector which are significantly represented in many ETFs including IVV/SPY 😊
But VIG yields lower than SCHD by almost half, and with YOY inflation at 3.5%, it's not a fund that would get the individual ahead of CPI. Sticking with SCHD here.
do I prefer SCHD or VIG ? I prefer DGRW. It's the 'KING' of Dividend growth funds 👍
I am still holding SCHD for now.
So first you say long term growth for SCHD LOL now its stop now buy XXXX LMAO VIG has been out forever and most are in it as well and I have both and I don't know how your numbers add up seeing as SCHD is giving more than VIG in my holdings. Both are a must have. As for the changes SCHD , its awesome its going to sky rocket with those changes. Not sure I agree with your opinion on this .
Thanks for the vid
I really like VIG & DGRO over SCHD now. Never go wrong with some solid etfs.
How do you feel bout DGRW whats the difference? I'm thinking of adding DGRO, can't understand the difference
All solid ETFs
@@MK-ut8ik I like DGRW but heavier towards Tech and higher expense fee
@@MarkRoussinCPA yes just noticed that higher fees. thanks Mark! great channel!
They sold AVGO which yields 1.7 and bought BMY which yields 5%. Dividend growth secured.
Great video on this topic. I already own VIG and it is out performing my SCHD on capital as well. I am thinking of adding one more and not contributing to schd any longer just VIG. I guess I'm looking for that growth as well, with schd I think is only dividend. good insight on this. Lookin into it further. thank u
If you want growth, why don’t you go for VOO, FXAIX, VTI or SCHG?
I’m retired. Healthy ira don’t need the money. Can’t find any info on how aggressive to invest. My grandson will inherit. Currently invested in moderate balanced fund with 6% return over past 7 yrs. Anyone where I am?
SCHD is super cheap for what it gives you! I’m sticking with my 1,000 shares for at least 5 more years. I also have 500 shares of VIG in which I plan to long hold till retirement.
Not for me. Stock picking method of VIG is inferior compared to SCHD.
SCHD all the way plus it's cheaper and you can buy more shares.
Very nice video 😊
Okay, I know CZcamsrs need to crank out content but this is crazy. For the last two years we hear buy SCHD and hold forever from the dividend investing gurus on CZcams. So I have been buying SCHD for the last two years and I'm very happy with it. Now the "experts" say there is a better ETF so sell SCHD and buy this one instead. I know you are not providing investing advice but, yes, you are providing investing advice. I know I'm responsible for my own investing so I am not blaming you but I do rely on channels like yours for investing information.
Bottom line: there has to be a time when you make a decision and stick with it. To be constantly changing ETFs or stocks because "this one is so much better" is just going to lead to confusion and changing horses midstream. Ultimately you just end up chasing the next best thing and this will lead to diminished returns.
I've heard that index funds and ETFs provide diversified stock market exposure while spreading risk. I have over $800K in savings; What's the most effective strategy to allocate funds in my portfolio and generate profits?
Yes, there are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
SPYI is one of my favorite. 12% annual, amd it Grows with the SPY ETF.
Which comes first: "D" or "G"? To be a "dividend" investment, IMHO, there must be a meaningful dividend to start with. The 30-day SEC yields of VIG and SCHD are 1.72% and 3.44%, respectively. Even if VIG's dividend grows considerably faster, it will take several years to catch that of SCHD and, perhaps, decades before cumulative distributions pass those of SCHD. If an investor want growth stocks that pay dividends, VIG may be the way to go. However, if (s)he seeks dividends that grow, SCHD is the way to go.
When you replace low current yield stocks with double + yield you get INSTANT dividend growth for the portfolio. That's how the algorithm works
You have to be careful or you end up with a bunch of VZ.......and nobody wants that....
You could make even more just sitting in cash at 5.27 percent instead of 3.59%
There has been stock appreciation as well… look at the total returns not just dividend yield. You’re also paying income tax on that 5.27 instead of qualified dividends. This is just not a fully fleshed out understanding of finances.
If only one etf then vig, if have another growth etf then schd. I don’t feel too much different between vig and voo
VOO VGT SMH SCHD I’m already tech heavy in 3 ETFs so SCHD adds a little more diversification.
You can get 2x the shares with SCHD so it’s a better option, no? Similar growth rates and Returns. SCHD will compound faster
Jepq has a great dividend
SCHD isn’t worth a crap! Less than 4% big deal!
Oh the humanity!
It’s hard to take anyone serious when they’re in motley fools pocket.
VIG all the way