Thank you! I was aware of DIVB but hadn't seen FDVV. I am actually going to start a small position in FDVV now. You actually run essentially the same tests I do when checking out new funds, so you saved me quite a bit of time.
The big difference between 2022 and 2023 in partly due to the wholesale changes in the underlying index itself. The index methodology was massively changed near the end of 2022 which also resulted in higher yielding holdings.
Good looking out. I appreciate you taking the time to watch the video and for the comment. It will be interesting to see how this plays out after the initial shake-up.
Great comparison review Jeff. Loved the information. Crazily I love FDVV, DIVB, SCHD, DGRO. I’m a Dividend ETF addicted soul. I only hold the latter two but have definitely thought of adding FDVV. Need ‘Mo money to make ‘Mo money. Thanks for another quality overview. Take care. Have a great week ahead to buy up more of these September drops.
Hey Lance! Thanks for watching and supporting the channel as always. I have slowly jumped on the dividend growth addiction train. I used to be all about the growth (VGT heavy for years), but after quitting my job and starting over with cash-flow I'm changing my long-term vision a bit. I still love a mix of growth / cornerstone and dividend growers. VGT+QQQM / VOO / SCHD isn't going anywhere for me. But I have slowly desired to add an exclusive dividend growth section as well (DGRO being the prime candidate). And I've already been converting cash to cash-flow (via JEPQ). Shuffling things around so the wife can fully retire in a few years. I'll still be here making videos in 'retirement' though! When I'm not at the Trail Blazer games at Moda Center that is (:
I have known about DIVB for some time now. But I don't think I will invest in it because, as you saw from your back testing, DIVB dipped by over 10% while SCHD, FDVV dipped by about 4%. My portfolio is quite aggressive and that's why I like sticking with SCHD, VYM and other value ETFs along with VGT, QQQ and my individual stocks. Thanks for the nice video.
I agree with your assessment 100%. I'm in the same boat as you as far as *why* I like SCHD for my portfolio. Great addition to go with VGT + QQQM + VOO. Thanks for watching and commenting.
Thanks Nate. I think I'm due for an official FDVV video. I historically overlooked it as a dividend growth fan, much like I discount VYM. I like all these dividend ETFs, but I have a bias towards SCHD, VIG, and DGRO. Compound math is broken (in a good way) when adding multiple decades with dividend growers.
As always, thanks for researching another option in the dividend ETF category. I reaaly like FDVV even more after comparing these. Not sure if i would change course but i am tempted to add another value/ etf to my dividend allocation.
Thanks for watching and commenting Roy. I am due for an FDVV video in the near future. I've always watched it from afar, but a deep dive would be nice for the viewers & for me.
You did a video with schd where you out in 500,000 and lived on the dividend. It showed how the did end yearly would increase. It would be awesome to show that with most videos. It really expresses how increased dividends are awesome and your principle increases over time. You have a lot of retirees that would love that and how different funds would excel or fail.
Thank you for the positive feedback. You'll be happy to know that I recorded a video that will come out on Sunday that uses that exact example (: And you spying on me!? Just kidding! I love to show the power of dividend growth. I beat the drum more than ever in my next video coming Sunday. I expand on the previous examples a bit, and provide some new ones as well.
Thanks for watching! Yeah, I'm with you. The dividend growth looks amazing on paper, but it really is after having one booming year. Before that it was a very low grower for all time periods. I can't wait to see how this one does moving forward.
Hey, hey, hey. Them are fighting words! Kidding. It has been very impressive. I can't wait to see how it performs moving forward. Specifically if the dividend can keep pace with the new lofty mark.
I recently discovered DIVB and am looking into buying into it to complement my position in SCHD that I have begun to grow. I was wondering if you would do a video on BKLC another amazing ETF that I recently discovered, it is basically a clone of VOO but without an expense ratio.
Thanks for watching and commenting. I'll check out BKLC. Would be a good one to consider in my cornerstone video when I cover the best balanced ETFs to hold in all markets.
Thank you for watching the video and for the question. I think most people should just invest with the market if they have 10+ years of contributing left. It is far better than handpicking stocks and ETFs based on our gut calls. My portfolio has outperformed the market by over $200k since I've been tracking directly, but I keep it balanced with growth and value, and there are zero 'predictions' or 'rotations' made. I stick to target allocations in all markets. Generally speaking, anyone that attempts to beat the market by going all in on one type of investing will lose over the long run. I think investing in the market is a great solution for most people.
Hello Jeff! Frankly speaking I'm struggling a little bit, trying to understand the benefit of having VOO as a corner stone in the portfolio, and taking to account SCHD dividend growth benefits, why do you prefer VOO to the role of the corner stone holding instead of SCHD? Thanks a lot!
Thanks for watching and for the question. I think VOO and SCHD are both great core holdings. I like VOO in my portfolio because it is a nice mix of growth and value stocks. SCHD leans heavily on value stocks, which I also like! And then QQQM and VGT are my favorite growth ETF specialists (opposite of SCHD). VOO is the jack of all trades. VOO is the index I try to outperform with my portfolio mix. But since most people don't outperform VOO long-term, to the tune of over 90% of investors, I think it is a good idea to have some in the portfolio as a 'cornerstone' holding. I like about a third of each. Value (SCHD), cornerstone (VOO), growth (VGT + QQQM). But 50% SCHD and 50% VGT+QQQM would ultimately create a 'VOO like' mix from a PE ratio and value perspective. I don't think an investor can go wrong as long as growth and value are properly balanced in all markets.
Thank you! I think DIVB is a hidden gem I’m wondering if the big jump in dividends in 2023 was a result of a jump in AUM ? Is there a way to find out? Hopefully DIVB will be able to keep up the good dividend growth Side note I guess I need to research FDVV now
Thanks for watching and for the feedback. FDVV is a solid dividend ETF that is worth looking into. I am far from an expert on DIVB at this point. Most of my research showed the increasing amount of companies executing buybacks as a boost to the ETFs performance. I think this increased the performance of the ETF and the AUM. It also dropped its expense ratio to 5 basis points in late 2022. That was a huge change for many passive, long-term investors. I know 25 bps vs 5 bps is huge for me when comparing like investments. I can't wait to see if it continues to perform that well moving forward.
@@jbro1945 For 2023, DIVB dividends were 97% qualified. The current portfolio holdings do include a small allocation to REITS which do not qualify for the lower tax rates.
this etf was radically changed about 2 years ago, historical data is irrelevant. it used to be basically voo holding a bunch of growth stocks like google. meta. apple. microsoft. then two years ago it changed methodology to focus on yield
Nice ETF. Subscribers - what do you think about the current dip? How low will stocks go? I got a nice pile of cash as gift last week but did not have balls large enough to buy stocks on this downtrend.
Thanks for watching and commenting. Great question about how low can it go. I never know when the market will decide to do it's crazy spikes. Earnings have been solid lately to the point that I don't think it will crash *hard*. Although I'm sure there is a ways to go because the valuations have gotten a bit out of control (even considering the solid earnings). TLDR: No idea (:
Hey Ron. I think that is a solid idea. I'm personally taking the wait and see approach with DIVB at this point. But it certainly has a solid track record. I'm one of those guys that lingers around for a while before jumping in the pool, lol.
I still strongly believe in VGT. I haven't seen a reason to change the belief based on the earnings of the tech sector. It has had a rough 2024 so far compared to the market. VGT: 11.99% VOO: 15.42% 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' -Ben Graham I think that is true in this case. Tech stocks got overvalued in my opinion. And they may still be overvalued even after the correction to VGT. But it doesn't change its target allocation in my portfolio long-term.
It is a funny 'high dividend' fund (literally in the official name) when it is only at a 2.93% yield. To be fair, it is a very low dividend grower historically. The oldest official data point on it is a 5Y dividend CAGR of 2.89%. The TTM is actually negative at -1.05%. It randomly has some nice data points for a 3Y at the moment of 11.86%. Zooming out on the 10Y dividend growth chart, the year by year growth is less than stellar compared to something like SCHD or DGRO. Don't get me wrong, it is a great dividend ETF that has performed well because of the tech tilt. But it is 'more of a' high yield than 'dividend growth', historically. I still prefer a SCHD + growth (VGT or QQQM) approach to get my tech and dividend growth.
it looks like VOO would have had the highest Growth gain and also some of the lowest Draw down. Would you comment then why would anyone choose these other ones ?
Max drawdown is March 2020 for everyone with the panic. Everyone selling everything all at once. If you want to compare max drawdowns start in 2021 (to see the 2022 bear). Worst year you can see the safety difference (1/2 to 3/4 less losses). Of course that downside safety also comes with lower upside growth.
Hey John. I've never been a huge fan of 'max draw down' personally. I completely understand that it makes sense to include it in the risk equation, but it feels a lot like hand picking date ranges for total returns to me. As a loooooong-term investor with a favorite holding period of forever (yes I stole that from Buffett), I prefer to look at year by year returns over as many years as possible to assess 'ceilings' and 'floors'. It is very clear that SCHD has better downside than VOO. It is not even close over the years. However, I can't speak to DIVB in this regard because I haven't followed it long enough to have full perspective. I don't think it is a typical dividend ETF from a screening and methodology perspective. However, to your point, I don't think anyone should investing in dividend ETFs over VOO *if* the only goal is to maximize total returns over the next 20 to 30 years. For me, it is more to 'replace the traditional 4% rule long-term' with the growing cash-flow regardless of market conditions.
@@JeffTeeples Good Point on the 4% Rule.. Just thinking out loud for those that are retired or close to it. how would th Draw down affect them. guess you would say none to little since as long as dividends are not cut then who cares about the lower RTF price etc temporarily during the draw down ..Right?
Exactly. Well, I can't tell someone 'this doesn't matter to you' because I understand we are all wired differently and it's not up to me to make that decision. But... From my perspective: Portfolio value 'doesn't matter' too much for a retiree that is using passively managed ETFs like SCHD to live on the dividends. Individual companies cut dividends from time to time, but 'on the whole', SCHD has never paid less money per share than the year before. If you are living comfortably now, you will *very likely* continue to live comfortably from a cash-flow perspective moving forward. Especially if you are able to reinvest 25% (or so) of the dividends paid. You only buy more shares per dollar when the price crashes, so it is technically a good thing to 'lose money' in retirement if you're actively reinvesting some of the cash-flow. Draw downs matter *a lot* for the traditional 4% rule users (selling shares to produce the income).
@@JeffTeeples very good point. Thanks looking into DivB and DGRO to compliment SCHD with less correlation over lap …not sure yet DGRO or DIVB better for that
Thank you! I was aware of DIVB but hadn't seen FDVV. I am actually going to start a small position in FDVV now. You actually run essentially the same tests I do when checking out new funds, so you saved me quite a bit of time.
Nice! Two great (we'll go with that!) minds think alike. Thanks for watching and for leaving the positive feedback.
DIVB is a keeper
It is impressive. I hope the dividend growth continues moving forward. Will be interesting to see how it does after the big spike.
The big difference between 2022 and 2023 in partly due to the wholesale changes in the underlying index itself. The index methodology was massively changed near the end of 2022 which also resulted in higher yielding holdings.
Good looking out. I appreciate you taking the time to watch the video and for the comment. It will be interesting to see how this plays out after the initial shake-up.
Had not heard of DIVB; thanks for the overview! Maybe one day it will replace my partial VYM holding; we will see.
I'm with you David. Taking the wait and see approach on this one. Thanks for watching and commenting.
Great comparison review Jeff. Loved the information. Crazily I love FDVV, DIVB, SCHD, DGRO. I’m a Dividend ETF addicted soul. I only hold the latter two but have definitely thought of adding FDVV. Need ‘Mo money to make ‘Mo money. Thanks for another quality overview. Take care. Have a great week ahead to buy up more of these September drops.
Hey Lance! Thanks for watching and supporting the channel as always. I have slowly jumped on the dividend growth addiction train. I used to be all about the growth (VGT heavy for years), but after quitting my job and starting over with cash-flow I'm changing my long-term vision a bit.
I still love a mix of growth / cornerstone and dividend growers. VGT+QQQM / VOO / SCHD isn't going anywhere for me. But I have slowly desired to add an exclusive dividend growth section as well (DGRO being the prime candidate). And I've already been converting cash to cash-flow (via JEPQ). Shuffling things around so the wife can fully retire in a few years.
I'll still be here making videos in 'retirement' though! When I'm not at the Trail Blazer games at Moda Center that is (:
I have known about DIVB for some time now. But I don't think I will invest in it because, as you saw from your back testing, DIVB dipped by over 10% while SCHD, FDVV dipped by about 4%. My portfolio is quite aggressive and that's why I like sticking with SCHD, VYM and other value ETFs along with VGT, QQQ and my individual stocks. Thanks for the nice video.
I agree with your assessment 100%. I'm in the same boat as you as far as *why* I like SCHD for my portfolio. Great addition to go with VGT + QQQM + VOO. Thanks for watching and commenting.
So exciting to see how your mind works! I always end up learning and growing from your videos ❤
Thanks for watching and for the feedback. My mind can have some malfunctions here and there, but it works alright most of the time (:
FDVV is 75 % qualified vs some that are 100%. Just another factor for those in a taxable account. Another great analysis!
Hey John. Thank you for the clarification on FDVV. I think I'll make a detailed breakdown video about FDVV soon!
Awesome video as they all are! Thanks, Jeff.
It does make me curious to go back and find everything you’ve said about FDVV though in past videos.
Thanks Nate. I think I'm due for an official FDVV video. I historically overlooked it as a dividend growth fan, much like I discount VYM. I like all these dividend ETFs, but I have a bias towards SCHD, VIG, and DGRO. Compound math is broken (in a good way) when adding multiple decades with dividend growers.
As always, thanks for researching another option in the dividend ETF category. I reaaly like FDVV even more after comparing these. Not sure if i would change course but i am tempted to add another value/ etf to my dividend allocation.
Thanks for watching and commenting Roy. I am due for an FDVV video in the near future. I've always watched it from afar, but a deep dive would be nice for the viewers & for me.
I really like FDVV
You did a video with schd where you out in 500,000 and lived on the dividend. It showed how the did end yearly would increase. It would be awesome to show that with most videos. It really expresses how increased dividends are awesome and your principle increases over time. You have a lot of retirees that would love that and how different funds would excel or fail.
Thank you for the positive feedback. You'll be happy to know that I recorded a video that will come out on Sunday that uses that exact example (: And you spying on me!? Just kidding!
I love to show the power of dividend growth. I beat the drum more than ever in my next video coming Sunday. I expand on the previous examples a bit, and provide some new ones as well.
Nice dive into this one. I can't ignore how that recent year affected the data. Sticking with my current strategy.
Thanks for watching! Yeah, I'm with you. The dividend growth looks amazing on paper, but it really is after having one booming year. Before that it was a very low grower for all time periods. I can't wait to see how this one does moving forward.
keep pumping out those financial informational videos Jeff!!!!
Will do Kevin. Eventually this thing is going to work! (:
Fdvv is the best thought!
I have to say, FDVV is pretty great. This coming from the SCHD fanboy (:
Thanks for another informative video!
Absolutely. Thank you for taking the time to watch it. I love this stuff.
the stocks you pick are solid. no traps for me! thanks!
Thank you for watching and for dropping a comment. I appreciate the positive feedback.
I like ishares, the holdings, and what this ETF offers. Will definitely look into this one. 👍
Hey Jed. iShares does have some nice ETFs. Thanks for watching and for the comment.
Divb needs more attention 👍
For sure. I'm pumped to watch it moving forward. Thanks for watching.
$DIVB is more powerful than $SCHD ! 🚀 Great video, thank you.
Hey, hey, hey. Them are fighting words! Kidding.
It has been very impressive. I can't wait to see how it performs moving forward. Specifically if the dividend can keep pace with the new lofty mark.
I recently discovered DIVB and am looking into buying into it to complement my position in SCHD that I have begun to grow. I was wondering if you would do a video on BKLC another amazing ETF that I recently discovered, it is basically a clone of VOO but without an expense ratio.
Thanks for watching and commenting. I'll check out BKLC. Would be a good one to consider in my cornerstone video when I cover the best balanced ETFs to hold in all markets.
thanks Jeff ,another nice video. if the market beats all, why not just invest in the market? , thanks.
Thank you for watching the video and for the question. I think most people should just invest with the market if they have 10+ years of contributing left. It is far better than handpicking stocks and ETFs based on our gut calls.
My portfolio has outperformed the market by over $200k since I've been tracking directly, but I keep it balanced with growth and value, and there are zero 'predictions' or 'rotations' made. I stick to target allocations in all markets.
Generally speaking, anyone that attempts to beat the market by going all in on one type of investing will lose over the long run. I think investing in the market is a great solution for most people.
Hello Jeff! Frankly speaking I'm struggling a little bit, trying to understand the benefit of having VOO as a corner stone in the portfolio, and taking to account SCHD dividend growth benefits, why do you prefer VOO to the role of the corner stone holding instead of SCHD? Thanks a lot!
Thanks for watching and for the question. I think VOO and SCHD are both great core holdings.
I like VOO in my portfolio because it is a nice mix of growth and value stocks. SCHD leans heavily on value stocks, which I also like! And then QQQM and VGT are my favorite growth ETF specialists (opposite of SCHD). VOO is the jack of all trades.
VOO is the index I try to outperform with my portfolio mix. But since most people don't outperform VOO long-term, to the tune of over 90% of investors, I think it is a good idea to have some in the portfolio as a 'cornerstone' holding.
I like about a third of each. Value (SCHD), cornerstone (VOO), growth (VGT + QQQM). But 50% SCHD and 50% VGT+QQQM would ultimately create a 'VOO like' mix from a PE ratio and value perspective.
I don't think an investor can go wrong as long as growth and value are properly balanced in all markets.
Thank you!
I think DIVB is a hidden gem
I’m wondering if the big jump in dividends in 2023 was a result of a jump in AUM ? Is there a way to find out?
Hopefully DIVB will be able to keep up the good dividend growth
Side note I guess I need to research FDVV now
Thanks for watching and for the feedback. FDVV is a solid dividend ETF that is worth looking into.
I am far from an expert on DIVB at this point. Most of my research showed the increasing amount of companies executing buybacks as a boost to the ETFs performance. I think this increased the performance of the ETF and the AUM. It also dropped its expense ratio to 5 basis points in late 2022. That was a huge change for many passive, long-term investors.
I know 25 bps vs 5 bps is huge for me when comparing like investments.
I can't wait to see if it continues to perform that well moving forward.
@@JeffTeeples
Do you have a video on FDVV?
I tried looking real quick and I didn’t see one
I don't, but I absolutely need to fix that in the near future (: I'll get on it. Thanks for watching and commenting.
Just curious, is DIVB a qualified dividends for taxable accounts? Thanks.
@@jbro1945 For 2023, DIVB dividends were 97% qualified. The current portfolio holdings do include a small allocation to REITS which do not qualify for the lower tax rates.
Comment edit: Thank you @TotalReturns. That is a great answer. Looks like the dividends are overwhelmingly qualified!
Thank you for this reply!
Thanks Jeff.
this etf was radically changed about 2 years ago, historical data is irrelevant. it used to be basically voo holding a bunch of growth stocks like google. meta. apple. microsoft. then two years ago it changed methodology to focus on yield
Thanks for watching and commenting. It will be exciting to see how (if) it grows the dividend moving forward.
Divb is also morning star gold rated.
It is a solid ETF. I do want to see how it does moving forward after some major structure changes. I will be keeping my eye on this one.
Nice ETF. Subscribers - what do you think about the current dip? How low will stocks go? I got a nice pile of cash as gift last week but did not have balls large enough to buy stocks on this downtrend.
Thanks for watching and commenting. Great question about how low can it go. I never know when the market will decide to do it's crazy spikes. Earnings have been solid lately to the point that I don't think it will crash *hard*. Although I'm sure there is a ways to go because the valuations have gotten a bit out of control (even considering the solid earnings).
TLDR: No idea (:
Do you think SCHD+DIVB is a good idea?
Hey Ron. I think that is a solid idea. I'm personally taking the wait and see approach with DIVB at this point. But it certainly has a solid track record. I'm one of those guys that lingers around for a while before jumping in the pool, lol.
@@JeffTeeples thank you. I’m also going to hang around for a while before making a decision.
You still believe in VGT? I have a similar portfolio as you (VGT + SCHD + MAGS) and VGT seems to be underperforming YTD.
I still strongly believe in VGT. I haven't seen a reason to change the belief based on the earnings of the tech sector. It has had a rough 2024 so far compared to the market.
VGT: 11.99%
VOO: 15.42%
'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' -Ben Graham
I think that is true in this case. Tech stocks got overvalued in my opinion. And they may still be overvalued even after the correction to VGT. But it doesn't change its target allocation in my portfolio long-term.
@@JeffTeeples Thanks for your input and love your videos. I look forward to it every sunday
FDVV kind of cracks me up "high dividend" - hmm, no - HIGH growth. But, I have been an owner, so not complaining.
FDVV top 3 holdings: AAPL, MSFT, NVDA. All at 5%ish weighting and double #4 PG at 2.2%.
It is a funny 'high dividend' fund (literally in the official name) when it is only at a 2.93% yield.
To be fair, it is a very low dividend grower historically. The oldest official data point on it is a 5Y dividend CAGR of 2.89%. The TTM is actually negative at -1.05%. It randomly has some nice data points for a 3Y at the moment of 11.86%.
Zooming out on the 10Y dividend growth chart, the year by year growth is less than stellar compared to something like SCHD or DGRO.
Don't get me wrong, it is a great dividend ETF that has performed well because of the tech tilt. But it is 'more of a' high yield than 'dividend growth', historically.
I still prefer a SCHD + growth (VGT or QQQM) approach to get my tech and dividend growth.
First. 👍
Confirmed! Thanks for the comment (:
it looks like VOO would have had the highest Growth gain and also some of the lowest Draw down. Would you comment then why would anyone choose these other ones ?
Max drawdown is March 2020 for everyone with the panic. Everyone selling everything all at once. If you want to compare max drawdowns start in 2021 (to see the 2022 bear).
Worst year you can see the safety difference (1/2 to 3/4 less losses). Of course that downside safety also comes with lower upside growth.
Hey John. I've never been a huge fan of 'max draw down' personally. I completely understand that it makes sense to include it in the risk equation, but it feels a lot like hand picking date ranges for total returns to me.
As a loooooong-term investor with a favorite holding period of forever (yes I stole that from Buffett), I prefer to look at year by year returns over as many years as possible to assess 'ceilings' and 'floors'.
It is very clear that SCHD has better downside than VOO. It is not even close over the years. However, I can't speak to DIVB in this regard because I haven't followed it long enough to have full perspective. I don't think it is a typical dividend ETF from a screening and methodology perspective.
However, to your point, I don't think anyone should investing in dividend ETFs over VOO *if* the only goal is to maximize total returns over the next 20 to 30 years. For me, it is more to 'replace the traditional 4% rule long-term' with the growing cash-flow regardless of market conditions.
@@JeffTeeples Good Point on the 4% Rule.. Just thinking out loud for those that are retired or close to it. how would th Draw down affect them. guess you would say none to little since as long as dividends are not cut then who cares about the lower RTF price etc temporarily during the draw down ..Right?
Exactly. Well, I can't tell someone 'this doesn't matter to you' because I understand we are all wired differently and it's not up to me to make that decision.
But... From my perspective:
Portfolio value 'doesn't matter' too much for a retiree that is using passively managed ETFs like SCHD to live on the dividends. Individual companies cut dividends from time to time, but 'on the whole', SCHD has never paid less money per share than the year before.
If you are living comfortably now, you will *very likely* continue to live comfortably from a cash-flow perspective moving forward. Especially if you are able to reinvest 25% (or so) of the dividends paid. You only buy more shares per dollar when the price crashes, so it is technically a good thing to 'lose money' in retirement if you're actively reinvesting some of the cash-flow.
Draw downs matter *a lot* for the traditional 4% rule users (selling shares to produce the income).
@@JeffTeeples very good point. Thanks looking into DivB and DGRO to compliment SCHD with less correlation over lap …not sure yet DGRO or DIVB better for that
Consider the like button "ravished" 😂
Haha, awesome! Thanks for watching and for *insert new word here* that like button!
The risk reward matrix I like the portfolio the down side yea fdvv is better now don’t like divb
Hey David. I think FDVV is a solid dividend ETF. Can't go wrong with that one long-term. DIVB is still on my 'wait and see' list.
VSDA, DIVO, VIG, XLRE. SCHD, VYM, SCHV, DGRO
Dang, I don't see that mix running out of cash-flow any time soon (: Thanks for watching and posting a comment.