I had the same question earlier. I noticed that SCHD has 15% as technology but it doesn't have major players (such as Apple, Microsoft, Amazon, Google, Tesla, Meta and NVIDIA) so I may have to split between SCHD and S&P 500.
Always backup your trading with a good strategy, else the bear market will hit you so hard, and you might wake up losing your saving, that's the market for you.
Thank you for your in depth comparison. Every video I’ve seen this far really pushes SCHD basically without question but you did a fantastic job going over both its good and bad features and exactly how it compares to S&P 500 ETFs. Bravo!
Thx for another great video. I had the same question earlier. I noticed that SCHD has 15% as technology but it doesn't have major players (such as Apple, Microsoft, Amazon, Google, Tesla, Meta and NVIDIA) so I may have to split between SCHD and S&P 500.
I thought the same thing when I went large on SCHD a year ago. I like its brother SCHG as that has the stocks you mentioned that are missing and returned a handy 140% over the last 60 months.
Thanks Nick for helping people to see and probably pick different options beside S&P500 ETF, I did replace it with two ( 2 ) ETFs SCHG which focuses more on growth with less dividend yield and SCHD which focuses also on growth but with high dividend yield and so far Have been getting the same results spending less money ( investment ).
Impressive! You obviously understand math and finance. As for me, an old geezer, I have money in value focused inexpensive Vanguard Admiral mutual funds ($50,000 minimum investment) and VUG as a growth kicker.
@@Stroz92 do u sell SCHD after few months/years and buy VTI?. that becomes taxable event (if holding in taxable account).. So depends on ur tax bracket and strategy..
@@JoeC5050 true but you have to trigger a taxable event when you need to sell vti. I recall that schd has a 37% turnover so it wouldn't be as good in a taxable account anyway. I don't have a taxable account so I don't worry about those things anyway.
Depends on goals, risk appetite and time horizon. Personally I like half options, speculative, growth stocks on one side then the other half in blue chip stocks and ETFs like SCHD, DIVO ect. That way if you trade like sh*t then the bluechip portfolio can help you
Hmmm....good topic and the answer to the question would be biased depending on what method you like long term for receiving income. Do you like dividends or do you prefer killing the goose? Either way has its pros and cons. I like dividends and the idea of never selling even though I know it's not the most tax efficient method. Plus, I am too frugal and would probably be too stingy selling to create my income. Also, even if you're the biggest math nerd in the world you can't do the math on how long you'll live. Either method is great as long as you're comfortable with it. If I had 10+ million I'd just throw it in the S&P and live like a boss haha. This wouldn't even be a debate.
I like SCHD for being safer in a tuff market for the next yr or 2. Mar 5th it's down around 5% and it pays in qualified divs, whereas the SPX is down 10%. Later this yr after a major bounce I might get a safer etf, SPHD pays .14 per mo 3.37% and is down a whopping .30 cents...lol
For a fund that has double the yield to effectively keep up with a growth fund during a historically long bull market says a lot. I can't wait to see how SCHD looks after a full market cycle. My biggest concern for comparing these is asset location. Having double the yield means having double the tax bill if not in a tax-advantaged account, and with a long time horizon I think a broad market fund will probably do better even if the funds' numbers seem relatively close.
Luckily my wife and I fall well below the $89k income threshold for taxes on dividends. So for at least another decade or more we won't have to pay anything on our dividends.
@@nicklaforge there isn't a lot of overlap in the top 10 holdings. Join the fb dividend growth group. I've color coded the overlap between SCHD, DGRO, VYM, VUG. SCHD AND DGRO seems to be the least overlap.
SCHD should not replace an SP 500 Index Fund. Instead, SCHD should complement it. For example, I have SCHD, XLK and VOO as the major holdings in my portfolio. Together they outperform SCHD and SP 500 on average.
Gee, the guy who just a month ago had a video about an ETF "better" than SCHD, which was in fact worse, I can't imagine needing to hear what you think about this.
This recommendation does not apply at the bottom of this cycle. SP500 will outperform SCHD over the next few years. I use SPY as my ONLY holding and sell calls against it 3 times per week: think a personal XYLD. The difference is XLYD sells ATM monthly calls. I sell .35 delta OTM calls. I outperform all the ?YLDs and Dividend ETFs. I trade in my tax free IRA only as the taxes would kill me in a taxable account.
For this year, I changed from 100% to SP500 to 55% SP500, 30% SCHD, 15% total stock market
nice
im assuming you kept sp500 for that extra growth power? and schd for the dividend?
Thanks for another great video. I'm replacing S&P500 with SCHD to reducing overlap in my biggest hold (60% in technology sector = VGT)
I had the same question earlier. I noticed that SCHD has 15% as technology but it doesn't have major players (such as Apple, Microsoft, Amazon, Google, Tesla, Meta and NVIDIA) so I may have to split between SCHD and S&P 500.
I’m not sure if it can be a full replacement but in combination with something like SCHY would be interesting.
Always backup your trading with a good strategy, else the bear market will hit you so hard, and you might wake up losing your saving, that's the market for you.
I'm actually tired of worrying about stocks... it's driving me nuts these days, I think crypto investment is far better than stock.
@@Oldgeedayoutuber That's interesting... and how can i reach the lady you speak about?
Thank you for your in depth comparison. Every video I’ve seen this far really pushes SCHD basically without question but you did a fantastic job going over both its good and bad features and exactly how it compares to S&P 500 ETFs. Bravo!
Yup. it can. I have already went that direction due to the way it chooses its holdings in the index.
Thx for another great video. I had the same question earlier. I noticed that SCHD has 15% as technology but it doesn't have major players (such as Apple, Microsoft, Amazon, Google, Tesla, Meta and NVIDIA) so I may have to split between SCHD and S&P 500.
Would something like a 60 40 voo/schd split be good?
I thought the same thing when I went large on SCHD a year ago. I like its brother SCHG as that has the stocks you mentioned that are missing and returned a handy 140% over the last 60 months.
... and I like the look of SCHY which is the international version of SCHD but not available in my country unfortunately.
@@winstonsmith2079 VGT seems like a better pick at that point. Up over 200 percent in 5 years and the yield is higher than schg
@@suttsd Nice. I will take a look
Thanks Nick for helping people to see and probably pick different options beside S&P500 ETF, I did replace it with two ( 2 ) ETFs SCHG which focuses more on growth with less dividend yield and SCHD which focuses also on growth but with high dividend yield and so far Have been getting the same results spending less money ( investment ).
I did the same, only I added a small cap growth etf also. FECGX from fidelity.
I would not replace the s&p with schd. I like to hold both
Thank you! Great video
I’m not sure if it can be a full replacement but in combination with something like SCHY would be interesting.
I hold 100 shares of SCHY with intent to reinvest the dividends. I think its a good exposure to international dividend stocks without the thinking😅
I've started about 6 months ago replacing VOO with a 50/50 combination of SCHD and SCHG
Awesome video bro -Thank u for the breakdown! I suffer from “analysis paralysis” and ur eval helped me out a lot 2 yrs later n 2024 😆👍🏾
I have both. I often consider consolidation into one or the other.
i dont get why you are replacing when all you goota do is have both why even choose
Really enjoying your video. Is there any way to guess whether SCHD would do better in a rising rate environment?
I own SCHD in my normal brokerage account, It's my only holding. With my Roth IRA owning VTI. VTI/VT in my 401k.
Impressive! You obviously understand math and finance. As for me, an old geezer, I have money in value focused inexpensive Vanguard Admiral mutual funds ($50,000 minimum investment) and VUG as a growth kicker.
next few years def SCHD will outperform SPY.. but I prefer VTI and chill (instead of jumping across multiple ETFs and buy/sell etc)
Why not hold your vti and buy schd?
@@Stroz92 do u sell SCHD after few months/years and buy VTI?. that becomes taxable event (if holding in taxable account).. So depends on ur tax bracket and strategy..
@@JoeC5050 true but you have to trigger a taxable event when you need to sell vti. I recall that schd has a 37% turnover so it wouldn't be as good in a taxable account anyway. I don't have a taxable account so I don't worry about those things anyway.
can you pls link the tools you use for analysing? i like the @3:44 . pls provide a link to it. TY
It's "portfolio visualizer"
Good video. It depends on a person's goals. I own both VOO and SCHD. A lot of times a blend of different ETF`s is the right solution.
Great video! Maybe do the same thing with DGRO? I view it at as an S&P 500 dividend version
That’s a good idea, I’ll look more into it!
I do both
I currently have both ( as well as XLRE), but I am thinking of dropping SWPPX and put it back in SCHD
Thats funny. I just dumped schd for swppx. I also have divo. Divo has a lot of financials and value.
I’m thinking of dumping swppx for schd lol
I'm here for the same reason lol. Got $44000 in swppx and am thinking about selling and pouring it all into schd🤔
@@slim_pickins01 I feel like at the minimum I should switch it for VTI since it’s in taxable…
Depends on goals, risk appetite and time horizon. Personally I like half options, speculative, growth stocks on one side then the other half in blue chip stocks and ETFs like SCHD, DIVO ect. That way if you trade like sh*t then the bluechip portfolio can help you
What about tax impact? After the dividends are taxed, wouldn't the extra dividend difference between the two be reduced?
Hmmm....good topic and the answer to the question would be biased depending on what method you like long term for receiving income. Do you like dividends or do you prefer killing the goose? Either way has its pros and cons. I like dividends and the idea of never selling even though I know it's not the most tax efficient method. Plus, I am too frugal and would probably be too stingy selling to create my income.
Also, even if you're the biggest math nerd in the world you can't do the math on how long you'll live. Either method is great as long as you're comfortable with it. If I had 10+ million I'd just throw it in the S&P and live like a boss haha. This wouldn't even be a debate.
I like SCHD for being safer in a tuff market for the next yr or 2. Mar 5th it's down around 5% and it pays in qualified divs, whereas the SPX is down 10%.
Later this yr after a major bounce I might get a safer etf, SPHD pays .14 per mo 3.37% and is down a whopping .30 cents...lol
What do you think of VTI 50%, SCHD 30% and VXUS 20%?
For a fund that has double the yield to effectively keep up with a growth fund during a historically long bull market says a lot. I can't wait to see how SCHD looks after a full market cycle. My biggest concern for comparing these is asset location. Having double the yield means having double the tax bill if not in a tax-advantaged account, and with a long time horizon I think a broad market fund will probably do better even if the funds' numbers seem relatively close.
Excellent observation about the tax consequences of SCHD outside tax protective account like an IRA or 401k.
SCHD does pay out in qualified divs for much lower tax bill than ordinary divs.
@@Gary65437 This is true. Same with VOO, though.
@@Gary65437 how does it work ?
Luckily my wife and I fall well below the $89k income threshold for taxes on dividends. So for at least another decade or more we won't have to pay anything on our dividends.
My portfolio is SCHD + QQQ
What about 60voo/40schd or even 70 30
Really can't go wrong with something like that. I would also add 1 more growth focused ETF into the mix
@@nicklaforge I actually just switched to a different strategy. Now I have 50% in vv 30% in vo and 20% in vb. Large medium and small cap funds.
I’ve been currently adding SCHD to my portfolio.. along with VTI. What do you think of that?
I am doing the same in my Roth IRA. Currently 60% VTI, 30% SCHD and 10% BND. Though I wonder if it would be better for me to replace VTI with VOO.
For the price of VOO a person can get VTI, SCHD and VYM for increased dividends and broad market growth
Would it be wise to invest in both?
Do you think people should replace SWPPX with SCHD? Long term growth.
Nice! SCHG+SCHD!!
im replacing S&P500 with SCHD to reducing overlap in my biggest hold (60% in technology sector = VGT)
I like this move
Schd and DGRO....what you think
They are both very high quality but also a lot of overlap.
If I could only choose one it would be dgro due to more growth names
@@nicklaforge there isn't a lot of overlap in the top 10 holdings. Join the fb dividend growth group. I've color coded the overlap between SCHD, DGRO, VYM, VUG. SCHD AND DGRO seems to be the least overlap.
the market already priced in most of interest hike, so the growth stock will likely outperform value from here
couldn’t agree more. the popularity around value seems to be at a high now, not dissimilar to growth stocks in 2020
50% fidelity 500
50% Schd
Would be a decent long term hold
SCHD should not replace an SP 500 Index Fund. Instead, SCHD should complement it. For example, I have SCHD, XLK and VOO as the major holdings in my portfolio. Together they outperform SCHD and SP 500 on average.
Gee, the guy who just a month ago had a video about an ETF "better" than SCHD, which was in fact worse, I can't imagine needing to hear what you think about this.
What’s the website you use for the charts?
Portfolio visualizer
I balance schd with vym and Vnq
Do both.
SCHD & DVY for me 50/50
This recommendation does not apply at the bottom of this cycle. SP500 will outperform SCHD over the next few years. I use SPY as my ONLY holding and sell calls against it 3 times per week: think a personal XYLD. The difference is XLYD sells ATM monthly calls. I sell .35 delta OTM calls. I outperform all the ?YLDs and Dividend ETFs. I trade in my tax free IRA only as the taxes would kill me in a taxable account.
Why have 1 when you can have both?? Lol schd is core in my personal, but not an option for my companies roth. So spy and vanguard are core
Schd is more defensive than spy….
Schd ❤️