Another great video 👍🏻👍🏻👍🏻 I Started in February VOO, QQQM, SCHD $5 each every trading day . MSFT $10 every trading day . Added in March QQQI , SPYI $5 each every trading day 🤞very exciting!
Nice! The right time to always start is now. You’ll be so happy in 10+ years no matter what happens in the short term. We could lose 40% of our portfolio. Great! Buy more and stay the course (:
Thank you for watching all the way to the end Marcos! I appreciate it. Yeah, we all feel like super heroes when we are hitting all-time highs every week. It’s when the crash happens that we are tested! Stay the course, buy in, and get way wealthier when it turns around (it always does).
Very nice Michael! It's great because your dividends will continue to grow on the shares you already have no matter how many more shares you accumulate. DCA monthly to add more just stokes that fire to grow even faster.
ThanX so much Jeff.... Great presentation.... Working towards 2,500 shares of SCHD - I DCA.... Have 1800 so far. Also hold DIVO for dividend block of the Foundational Triangle.... Have thought about diving into VIG, DGRO and possibly VYMi but nothing major.... Time will tell.... Will likely keep pushing to get all my Foundational Triangle positions at the recommended level for our ages....As always appreciate all that you do for us. Always looking forward to your videos. Need more TEEPS....!!!! Happy Easter to you and your family. Enjoy the week ahead....
Thank you Lance, I appreciate the kind words. Happy Easter to you and yours as well! I love making these videos and I don't plan on stopping. There are so many great low-cost ETFs that will pave our way to financial freedom. I will debate with my friend which ETFs are the best in each category (VGT vs QQQM vs SCHG, or VIG vs DGRO vs SCHD)... But then we step back and think they are all great compared to having a 'professional' steal our money with asset under management fees and high cost, actively managed mutual funds. When we work on this stuff together we all win!
Very nice! Welcome to the club. It will never wow us with lightning returns... But keep adding and the dividend snowball can be deceptively great over time!
Thank you for watching & for the kind words. You are doing a great thing for your kids! Keep on piling money into that thing and watch the snowball take over!
I agree with your take. SCHD, JEPI, AVUV, international have all been lagging growth such as XLK, VGT, QQQM but that means this is a good time to diversify into such names.
Absolutely. The growths have been dominant, and I'm glad I've been along for the ride (VGT for me). But it's time to load up on the more beat up assets. in the future, the growth will crash, hard, we just don't know when. And when everyone is screaming to stay away from QQQM / SCHG / VGT... We will rotate and load up on them at a discount to get them back to the target allocations.
This is a very comprehensive breakdown. Thanks for all the hard work you put into the video. You’re helping a lot of people make sense of it all including me 👏 🙏
Thanks Patrick! I really do appreciate that feedback. I aim to make the videos clear and concise. Doesn't always make for the most entertaining watch, but I love sharing this stuff with the world. I want to help as many as possible blaze down the path to financial freedom.
That is awesome Andy. It is important to stay balanced. I need to drop more growth videos. I feel like I've been beating the dividend drum lately. I like to keep (about) a third each of: Growth (VGT), cornerstone (VOO), and dividend (SCHD). Balance is key as it allows us to 'buy to our targets' and thus automatically 'buy the dip'. When VGT crashes, I will 'buy it back' to its 33.3%. Lately, I haven't been buying VGT, but its time will come!
Thanks for the positive feedback! I don't like bonds in any market, personally. When rates drop, I would prefer 'more' SCHD like ETFs to capitalize on the dividend growth rate long-term. I also view my JEPQ as a 'crazy high yield savings account'. I know full well that the value can drop, but, I love the cash-flow with that one. Bonds have been losers for over 100 years for long-term cash flow because of the nature of them. They are lending a company money as opposed to being an owner and sharing in the profits and growth. This mindset has nothing to do with the last 10 years only. Bonds have never been better on a prolonged cash-flow basis in history. With that said... If you *do* care about the portfolio value (using 4% rule or something like that) at any snapshot in time, bonds can be decent. But they will *always* lose you money over an investing and/or retirement 'career'. It has never not happened. The real answer is 'it depends' just like all of this stuff.
Thanks for the comment. I think it is a very well balanced ETF with great methodology. It has been getting a lot of hate lately (compared to 'better' performing dividend ETFs). What is happening is tech is doing very well. This proportionally boosts things like DGRO and VIG more than SCHD and VYM. These things will come in cycles. But I MUCH prefer VGT (growth ETF, separate from dividend section) to ride the tech wave. For example, a 50/50 mix of SCHD and VGT crushes DGRO or VIG or DGRW over all time periods, while still having a similar amount of dividend cash flow and dividend growth. People will get caught up in return wars per category and lose sight of the overall portfolio performance. I think SCHD will always be solid if the goal is cash-flow that grows over the years, and also appreciates decently well. It will likely not have the highest total return, but I don't think that is the objective.
Nice! It's always fun to select individual stocks on the side instead of rolling 100% with these quality ETFs. I plan to have at least 10% in individual stocks myself.
SCHD is the best and honestly you have to just pick one and be highly convicted that it will be a good investment 20 years from now. Jumping from investment to investment because it’s new or shiny is a bad idea IMO.
Hey Taylor. I could not agree more. Thank you for the comment. If we stay the course (in general, slight allocation adjustments over many years as things change) we will be so much better off! Investors that try to time the market perform so poorly it's crazy. The market is up ~10% per year in the last 100 years, and stock pickers average usually ~3-4%. They somehow find a way to underperform each asset class. It's because of panic selling and moving things around.
I personally really like SVOL, the dividend is great, but not many people like it, so I didn’t invest heavily on it, why?Jeff, do you have any idea? I most invested 3 in my portfolio, 1/3 VOO, 1/3 QQQM, 1/6/SCHD+1/6 DGRO after watching a lot of videos. Also few in SVOL + JEPI after every paycheck. Also , I recently changed my 401k from dated fund to FXAIX, roth IRA to VOO , VUG and VYM.
Jeff since I'm new to investing this year I decided to equally invest in dgro and schd for my dividend ETF for my 3 fund portfolio. I feel that they compliment each other and at the same time I won't have fomo if schd stalls while dgro grows as it has been. Best of both worlds I guess lol. My growth is schg and value/foundational is splg since it's basically voo with a slightly lower Expense ratio. Thanks Jeff for the video since schd been getting so much hate in the last few weeks for no real reason.
I have to say, for someone that is just starting, you are set up better than nearly everything I see! Great work! SCHG for growth is top notch SCHD and DGRO for dividends are great SPLG for the cornerstone is fantastic I really like DGRO with QQQM and SCHG, specifically. I roll with VGT (which is 100% tech) and SCHD (lowest tech of dividend ETFs). With you using SCHG instead of VGT, I love the addition of DGRO along side SCHD. It balances out you mix very well.
Another great Sunday content vid, Jeff! And congrats on the MoneyWise article that came out yesterday!! I assume you saw that and know that came out Sunday? Happy Easter!!
Thank you Todd! I appreciate the positive feedback. I did see the article, pretty cool. The only part I didn’t like is that it implied I always made $170k per year. I started at $47k and slowly worked up. Didn’t hit six figures until 2018. But overall, I’m happy, because it will help more people!
What about JEPQ? Does it just not have a long enough track record for you? Since its inception, it's outperformed SCHD significantly, on dividends as well as gains.
Hey Scott. I like JEPQ quite a bit. But it is far from an SCHD comp. It has a high yield and low dividend growth. And it is invested in primarily growth stocks as it's underlying holdings. SCHD is 100% value stocks. Growth has smashed value in the past decade, but value has been great when we zoom out 100 years. It is easy to get caught up in the moment, but a fine mix would be desirable. JEPQ has a 70% weighted overlap with QQQ. It is not your typical dividend stocks, which is why the dividends are not qualified. Love both, but it is apples to oranges. WE should never compare the returns of growth and value over a short time to establish which is 'better'. Fun fact, QQQM will outperform JEPQ on total return, and VOO will out pace JEPI. It is just in the math of how they work.
@@JeffTeeples I get the argument about zooming out 100 years, but that also means accepting "average". If you look at what stocks were the top of the SP500 in 2000, or the Fortune 100, for that matter, it was large manufacturing, energy, and traditional retailers. No longer true. Nvidia operates at a 65% gross / 32% net profit margin. If you look at the top stocks by market cap, there are only a handful in the top 20 that even have physical locations as a major part of their business. Software and finance have significantly lower distribution costs. Point is, there's a major sea change in the kinds of businesses that outperform, both in their market and in the stock market. I certainly could be wrong, but I'm prepared to be. If that should shift, it won't happen overnight (or it certainly won't be a problem overnight). For my long-term portfolio, I check both factor and sector performance every month, not just for the current top performers, but the trend. And I reallocate when necessary. I know that's not *completely* passive, nor the absolute simplest strategy, but it's not *that* difficult. It only takes about an hour a month, tops, and the end result significantly outperforms the broader index, with lower drawdown. As far as QQQM ourperforming JEPQ, we only have a couple of years of data to go on for JEPQ. Over the past year, they've both performed at around 37%, including the dividends -- so, dead even. But... QQQM had an almost 11% drawdown vs. JEPQ's 6.6%. Same performance, half the drawdown -- I'll take it. Fair point about non-qualified dividends. My long-term portfolio is all in Roths, so it's a moot point for me. But might not be for everyone. The tax implications of all this do get complicated -- that's a good case for keeping it simple for many people.
I like the way you think. Many other smart people have been there, and without exaggeration, under 2% of actively managed funds by professionals beat the S&P 500 over 20+ year stretches. Again, this is not exaggerated. It's because the S&P 500 automatically grabs the market by value and growth weight real time. No such thing as having to rotate because it is literally self rotating. I'm with you though, and I'm currently trying to (and succeeding in) trying to beat the market with my personal picks. It seems like it is possible, so why not (: QQQM is up 53.1% since JEPQs inception. JEPQ is up 42.04% in that time. Different markets will bring different results, but over a long stretch of time, QQQM will outperform. Basically, they are the same thing (close) on the holdings, and JEPQ purposefully caps its growth in favor of dividends. The math will play out. I agree JEPQ is amazing for cash flow, and I have it for that purpose. VOO is also smashing JEPI since inception. Identical logic. I've embarrassingly looking into this probably a little too much, lol. The outperformance is assuming markets go up over time (which they always do, unless something REALLY bad happens). This is the ultimate 'timing the market' zoom out.
@@JeffTeeples Over a very long stretch of time, QQQM and SPY (or VOO or whatever) will probably outperform the vast majority of other individual ETFs.. BUT, there's the rebalancing bonus, aka Shannon's Demon. If you can find the right pace for rebalancing, and the right assets, you can outperform the indices. My current long-term portfolio is based on looking at risk-adjusted returns metrics, particularly Calmar, Martin, and Sortino Ratios. It's then filtered for diversification, e.g., don't need two India funds, or two growth funds, two dividend funds, etc. Not intentionally, but unsurprisingly, I've ended up with a mix of the best-of-breed in each category, e.g., one factor rotation, one long/short, a large-cap value, a large-cap growth, a midcap quality, an index income, a BDC income, two geographic indices, and four industry sectors. portfolioslab.com/portfolio/oh19uzlv3ge1un7rbg6glgf0 if you want to take a look. My intention is to rebalance monthly, but if I stick to whole shares, there probably won't be much of that. More likely to be a reconstitution if something falls significantly performance-wise or something else earns its place. I have a 5% trailing stop set on most of them - a few with higher volatility, it's more like 7%. That would have kept me out of the worst of 2022 (June and September) for example. As a practical matter, it's more likely for the portfolio to get reassessed around those big bear events. Happy to discuss with you further offline if you're interested.
I like your weekly vids. I have actually moved some of my investments around based on your analysis. It was interesting to see the percentages that these funds overlap. Could you do a vid on your recommendation for investing in 5 or 6 of your best funds that have the least amount of overlap between them. I would like to build a long term portfolio on just those. Thanks in advance. NR
Thank you for the feedback and for the idea, Nelly. I appreciate you taking the time to drop a comment. I will be dropping some of my favorite portfolio ideas in the near future. Including updates on my actual portfolio to show how I practice what I preach (:
Jeff thanks for the analysis on this video. Based on one of your comments, would you advocate using SCHD as a alternate to bonds/bond proxy, or do you still have bonds in your portfolio, in addition to the ETFs you use?
Hey Kory, thanks for the question. I will never have bonds in my portfolio unless something MAJOR changes in the future. This is based on 100+ years of data (nothing to do with the recent history). They straight up lose purchasing power over the years for anyone dollar cost averaging in (and never panic selling low) compared to quality dividend stocks & ETFs. They are ironically the worst for retirees trying to preserve wealth and keeping up with inflation. Sometimes they look attractive by comparison. Guaranteed 5% vs a lower SCHD 3.4% (or whatever it is at that moment). But they never are, ever. SCHD purchased 10 years ago is yielding (randomly this isn't made up) about 10.0% on cost today. It has been strong, but still, crazy stuff. They don't double your income every 5 to 10 years (conservatively every 10). They won't beat inflation (keep rough pace with it at best). It makes no sense to NOT double your income (with zero reinvestments, living on the dividends) every 6-10 years. Just look at this SCHD history. This is per share payout WITHOUT reinvesting. You never have to put another penny again to 'grow'. Per share payout by year: 2023 $2.6580 2022 $2.5615 2021 $2.2490 2020 $2.0284 2019 $1.7242 2018 $1.4393 2017 $1.3457 2016 $1.2580 2015 $1.1466 2014 $1.0469 2013 $0.9038 2012 $0.8100 2011 $0.1217 I show the data just to help make the point it's not 'my opinion' that it works better. The price has also gone up over 3x, but that is just a bonus (it will go up and down over the years, but always up long-term).
Great response. I have tended to agree over the years, and yet my advisors have always had bonds in my portfolio, leaving my portfolio underperforming (from my standpoint). And, of course in 2022 it didn’t offer any balance or downside protection, either. The challenge for me now is adding much more dividend equity using my bonds while markets are pretty frothy. Maybe the solution is dollar cost averaging my bonds into SCHD or the like over a 12-18 months. Thanks again. Enjoying your channel.
Hi Jeff, I'm 20 years old and have a small portfolio of 3 ETFs: Foundational ETF - VOO 33% Dividend ETF - SCHD 33% Growth ETF - QQQM 34% Question: What do you think of this portfolio and do you think I should make any changes? Should I invest in individual stocks? I've been dollar cost averaging $1281 every 2 weeks since February and this will end in June (when my internship ends)
That is an incredible mix. Also, very impressive amount to be cost averaging in at 20. Great work! At 20, I would likely go lighter on SCHD and heavier on QQQM and VOO because you have many years to ride it out. Just never sell low (or ever) and you’ll be looking good in a couple decades.
hey Jeff. Thank you for the amazing content as usual. Big fan here. perhaps you can help me out here. I'm writing from Singapore. Singapore and US does not have a tax treaty. Meaning If I invest in the SCHD, I'm subjected to a 15% withholding tax. It will automatically deduct 15% from the dividend payout. With that in mind. Do you think is still worth investing in SCHD ? or is there other dividend growth etf I should consider? Like JEPQ or others?
Thank you for supporting the channel. I'm glad you are liking the content. Unfortunately, I don't know enough about investing outside of the US to answer your question. I don't want to provide an answer that can be misleading. I hope to learn more in the future (getting more and more of these questions, need to study up over the years).
Hey David, thanks for watching and for the question. I hold all of my VGT in my traditional IRA, and SCHD in my traditional IRA + taxable account. I know this seems backwards to a lot of people, but it technically makes more sense mathematically. I am basically guaranteeing that I'm never taxed more than 15% on the SCHD dividends and growth, and my kids get it free of capital gains (step up cost basis) when I die. And, most the dividends will be taxed at 0% for life in a taxable account when my wife retires. Traditional IRA dividends will ALWAYS charge at least 12% for life (to take it out or convert it to Roth). Here is a video where I (kind of) explain the logic. I will say anything that pays 100% qualified dividends is great in any type of account (retirement or taxable). ua-cam.com/video/iCB8rNWnUmc/v-deo.htmlsi=DDpURGO69P1sR6lp
Thank you for the question Pablo. I really like JEPI and JEPQ. They are my favorite covered call ETFs overall. Reasonable expense ratios at 0.35% for actively managed funds.
Hey Ryan, thank you for the question. SPLG is great! I like VOO because I am a huge fan of the Vanguard name in the low-cost ETF world, and the assets under management are always very high. I know they are never going anywhere, and they have earned my trust over the years. (SPLG isn't going anywhere either, just explaining why I like Vanguard funds).
Hi Jeff What do you think about VOO and VTI as Cornerstones, SCHD for dividends and SMH, QQQM and XLK for growth. How much of overlap is there between SMH, XLK and QQQM? Do you think this portfolio will work for a new investor looking for short term growth and long term stability
Thanks for the question Ali. I think that is a fantastic portfolio! VOO and VTI make for a great cornerstone, and SCHD is my favorite dividend ETF to counterbalance the growth ETFs well (low in tech, so it doesn't just follow trend of growth ETFs). SMH, XLK, and QQQM have a decent amount of overlap. But that isn't relevant because they are all in your growth section. So as long as you keep the overall growth section to a set amount (say 40%, for example), you are good to go. XLK has 100% overlap with XLK. QQQM has 100% overlap with QQQM. You see the point. Overlap doesn't matter 'within a section' of your portfolio. And with SCHD as your dividend ETF, you will have VERY little overlap with your growth section regardless. Also, everything overlaps a solid amount with VOO and VTI as well. Remember, this is also mostly meaningless, as these literally are 'the market'. Of course selections from growth and dividends will include the top US companies at all times. VTI is... well, all of them. So you are good to go with VTI or VOO being anywhere from 0% to 100% of your portfolio. I see some people get stuck on overlap with cornerstones, which doesn't make sense.
Thanks for all the info Jeff great video. Do you prefer to have DGRO over DGRW. I'm brand new to all of this thanks so much. And I'm much older. Thanks again.
Hey Jenn. Thanks for watching and for the questions. You'll pick this stuff up in no time. I think DGRW is a great ETF, but it is 'more like' a cornerstone holding. A VOO or VTI. It's not official language, but I like to break down a well balanced portfolio into 3 sections: Growth ETFs: These usually don't pay a large dividend, but they grow the price over time. The companies will generally reinvest most of the net income to expand the business, instead of paying dividends. My favorites here are VGT, QQQM, and SCHG. Then there are the cornerstone holdings. Broad US market funds that hold a bit of everything. These are the type of ETFs that give you a bit of everything. Value companies, growth companies, dividend payers and growers, and everything in between. My favorite is VOO (500 of the largest companies in the US), but VTI is also great (ALL stocks in the US). I think DGRW 'mostly' fits in here. It's dividend yield is barely higher than VOO, and it has 300 holdings with a weighted overlap of 45%. This means they are 45% identical. I consider it a solid cornerstone holding. Dividend ETFs, like SCHD and DGRO, will focus on paying and growing the dividend. They are higher yield (more cash in your pocket) than the growth and cornerstones, but 'typically' (not always) will have lower returns when we zoom out over long stretches of time. They are good 'floors' for portfolios when the growth ETFs collapse at times (and they will). SCHD stays a LOT more stable than VGT, for example, over the years (these have been my two main holdings for years). I think it's healthy to have a nice mix. Cornerstones are always great (up to 100% is fine). Dividend ETFs will generally be more desirable when you're in or close to retirement. Growth ETFs will generally want more weight when you are young and have many years to handle the rollercoasters. I'm almost 42 years old, and I prefer about a third of each 'type' right now.
Jeff - This is another great video! I hold SCHD and I great appreciate your analysis and assessment of the recent reconstitution. What individual stock do you hold outside of ETFs?
Hey Bruce, thank you for the positive feedback on this video! I should finally put out some more stuff now that all of my year-end and first quarter SCHD is out of the way (: Time for more growth coverage! I am going to be releasing the full details of my individual holdings to the members in the coming weeks. I've been on the fence about this, but I'm okay showing the full details. I own 25 in the HODL factory that has performed well, and 25 in a dividend growth ETF I started last week to focus on yield and growth (2.6% yield with a 15% dividend CAGR roughly). I'm not going to give details about my screeners and spreadsheet process (it has MANY more steps than the ETFs I buy and hold like SCHD), but the results will be fun for people to be able to track (it will show how much I own, and cool high level stats like weighted yield and CAGR, and performance vs the market and other dividend ETFs). I will always share the high level information for free to everyone, as the goal is to help the masses reach financial freedom. It is all I care about honestly. But... I am trying to find ways to provide some bonus content to members! I really appreciate the support! I'm not in this for the money, but I did leave a lot of money to do this if that makes sense.
I’m trying to forecast schd over a 40 year hold period, what dividend cagr and annual price appreciation do you think would be reasonable to assume for the long term ? Dividend cagr for schd on 10 year is 10%ish but the last few years it has dropped like a rock to now low single digits …
Great question. Impossible for us to nail it, but... My favorite dividend CAGR to use is the lower of the 5 and 10 year CAGRs (in general for these projections). However, you're right, it has fallen quite a bit lately. Perhaps making multiple scenarios would get a better 'best and worst' case solution. I think using 6% is reasonable. I know it has been bad, but historically it has never been below 7% (excluding 2023).
Safest way is to just use the total return number for 40 years and then multiply that result by the current / typical yield (might as well call it 3.5%). Most people project way inaccurately and use 10% for the dividend growth rate and something less than that for the price appreciation. That simply won't happen over long periods of time, less something is starting of very a very low initial yield. SCHD at 3.6% is a pretty good yield already and many of the stocks that it holds have a moderate to sometimes high payout ratio. Plus, even if the dividends increased 10% each year for 40 years the price would have to go up, on average, by at least that same amount else you get a huge price to yield distortion that won't happen in the real world. Since SCHD's NAV is very close to the daily price, for SCHD to get overly distorted you'd have to have the majority of the holdings paying very high yields down the road.
Question: on the greedy/ fearful, if you cant buy in balance monthy, where should you be putting funds until your annual rebalance (like growth vs SCHD vs 500)? If my question makes sense. Like i try to buy monthly to maintain my portfolio balance but its not exact/ should i buy what is at a discount always? If no discount should i buy what i anticipate to grow more?
Thanks for watching & great question Dominic. Warren Buffett will sit on cash for MONTHS (shoot, years even) at times looking for a great company at a discount. However, as a robot, I use an automated system to follow the quote. I like to stay invested in the market instead of sitting on the sidelines. I strictly buy to the target allocations with new dollars. This will buy what is at a comparative discount automatically. It will also keep you in balance throughout the year. Before I left my job to start this channel, I didn't have to 'rebalance' very often (if ever). My wife and I had enough 'new dollars' to 'rebalance real time' as I bought the new positions. For example, I have been buying a LOT of SCHD over the past year and a half. This has helped it keep up with VGT.
I like SCHD better, personally. That is mostly because I am a VGT holder, so the overlap and portfolio balance matters to me. DGRO is great as well. SCHD has a higher total returns over the past 5 years, and a higher dividend growth rate over the past 5 years. I think DGRO will pass SCHD in the dividend CAGR (as it has lately, this will trickle to long-term as well). So I see SCHD as superior yield and low-tech coverage with solid growth rate. DGRO is superior growth rate with solid yield and some overlap with growth ETFs (not horrible, but not proper floor role either). Both great. I think DGRO is fantastic with QQQM or SCHG as growth mains.
Hey Jeff. Thanks for watching and for the question. It is done by the index itself, and SCHD seeks to track said index. So the answer is kind of both. Thanks!
Thank you! My wife showed me that the other day. I didn’t know my Ari interview spread like that! No complaints here. I want to reach as many people as possible. Anyone can do this stuff! (:
SCHD and other dividend income equities like utilities have suffered with higher interest rates. Funds flowed from risk assets to fixed income like treasuries and money markets If yields drop, the reverse should occur. Money will flow from fixed income to risk assets like SCHD I dont have a crystal ball. But I do know that the current fed funds rate, the national debt is growing at one trillion dollars per quarter. So im buying as much SCHD for myself and family members as our resources allow.
Hey Chris, GREAT points. I'm not one to make predictions, such as when the next crash is coming, when is the best time to invest, etc. BUT, I completely agree with you and your logic. 'Eventually' things will flip and it will make a lot of sense. Usually at that point, people are too late to 'get in' at the great price. It's why I simply buy to my target allocations. Right now, I'm loading up on SCHD because my VGT and VOO are going to the moon the last year+. When VGT crashes, I'll be buying it (automatically to get it back to its target allocation). I don't officially state 'buy this now' because I admit I don't know the exact timing of things, but I do know what will happen 'over time' when accounting for the regression to the mean. And what you said is spot on IMO.
Hi Jeff, I hold SCHD and quite a few other great ETF’s divided into 6 pies. Have you ever heard of Ben Felix and his Factor Portfolio of ETF’s? He uses Dimensional Fund Advisors (DFA Funds) which I use to have too thru a qualified manager. I stopped using them just due to the expenses. But Ben Felix has a non DFA factor portfolio equivalent which uses Vanguard and Avantis ETF’s. I was curious if you know about it and what you think about his non DFA equivalent portfolio? Thanks man.
The name rings a bell, but I'm not aware (or don't remember) the factor portfolio of ETFs. Related but slightly different (just thinking about stock picking in general): I do have a formula for picking stocks that I've worked on with my friend over the last year. It is fairly elaborate (not just a few factors like most popular ETFs, 10+ screens and 10+ weighted ranks for scoring in a spreadsheet that racks and stacks the companies). I feel like it will be a long-term winner, but I really don't know yet. If it is, I am planning on starting an ETF some day (it's a pain to get it going, but if I have a winner I'll make it happen, been a long-time goal of mine (before starting the HODL Factory, which is what we call our portfolio )). Of course the expense ratio will be low (: It's very early, but we are up 55.72% to the markets 26.89% (using VOO) since inception in April 2023. It could be dumb luck, and maybe it will underperform when the market isn't bulling along. So I want to give it time before I REALLY start sharing. Very exciting stuff (at least for nerdy me, lol).
Hi Jeff, if i have 25k in SCHD today, how many years will it take to turn 500k and million, considering both the options of dividend reinvestment and no dividend reinvestment. How much yearly investment would you recommend on top of 25000 to hasten the compounding process. Second, why have VOO when SCHD keeps up with the market, why not go 50% each with growth and dividends?
Hey Ali, thank you for the questions. I don't think having 50% dividend ETFs and 50% growth ETFs is a bad idea (as long as we select solid long-term performers that are passively managed). I like to add in S&P 500, personally, as a cornerstone holding that will produce positive results long-term no matter what. Nobody has ever lost to inflation over any 20 year stretch of time dollar cost averaging into the S&P 500 over the past 100+ years. Not once. I like that security and guaranteeing my share of the markets returns. SCHD has not, and likely will not, keep up with VOO over *long* stretches of time. It's too early on to see that play out, so I guess we'll have to check back in 10-20 years. But I think VOO will have better total returns because of including more growth stocks. SCHD will be a lot more stable. The 25k question has a lot of variables. If you put in $1,000 per month, and it grew at 10% (total returns, including dividend reinvested), you would be there in 15 years. $500 per month will take 19 years.
Of course. I think the secret is that we are all novices, myself included. There is so much to learn. I like the idea of learning together over the years.
Thank you for the positive feedback. I do share the spreadsheets from these videos with my channel members. It is a way to support the channel and to (hopefully) prevent me from taking future sponsorships that I don't believe in. All videos I share with information will be 100% free. Wanted to find a way to add perks as a thank you for the support.
Can anybody explain why FDVV is rarely brought up in dividend ETF convos? It has a high yield, growth, and relatively low expense ratio. What am I missing on why this one isn’t popular?
That is actually a great question. I wager that it is almost exclusively the way that articles and content creators on UA-cam just jumped on SCHD for some reason, with the rest being the more stable and up trending dividend income stream. Technicals, FDVV mas drawdown was a bit higher than SCHD, but overall, more price appreciation, pretty high dividend, BUT, the dividend from year to year is way more up and down while SCHD has been more of a steady Eddy with the trend up from year to year. Don't get me wrong as FDVV's income stream has an upward trend BUT the dividend from 2019 to 2021 was a big drop and then from 2021 to today a big upswing. If you were retired and needed to be able to plan on steady income, you really can't budget around FDVV. If you have more than enough income and are ok with a holding's income bouncing around but trending in the right direction over time, FDVV is a great fun. If your income from dividends though, is pretty close to your spending FDVV might be a bit of income risk that you don't need. Just guesses of course, but from the 5,000 foot level, that is what I see.
I have heard quite a bit about FDVV over the years. I will add it to my future video list to get it some spotlight. For me, personally, I do SCHD to balance out my portfolio. FDVV is a bit higher in tech (which is totally fine for someone not heavily invested in VGT in the growth section). I'm going to add it to my ETF Compare tracker and keep a closer eye on it.
Thanks Jeff! Looking for a few dividend ETFs to balance with SCHD, and FDVV seems to be a better compliment than DGRO from my perspective. Would definitely appreciate your analysis skills on that.@@JeffTeeples
I currently have a target date fund with my work 401k, then i invest in schd, vgt, and voo in my Roth IRA and HSA brokerage accounts. Does this sound like a solid plan?
Absolutely! If your work has a low cost S&P 500 fund, I would highly recommend that instead. Many companies offer this (I would say most do). However, a target date fund isn't the worst thing in the world to have IF it has a low expense ratio. Some of them are over 0.50%, which is not great at all long-term. At that point, I would roll with whatever the low-cost, broad market fund is. As far as your Roth and HSA, I wouldn't change a single thing. Great work!
I hear ya, financials are a bit all over the map. They pay great dividends, and grow them, but have deceptive results in other areas (such as total return) often times. SCHD is lower than VIG and DGRO in financials by a bit. They are between 17-20% though, fairly close.
Hypothetical question about qualifying dividends. Husband and wife make 90k taxable income, but they make 500k in qualifying dividends. What is their tax?
Thank you for the question! The first 4k would be taxed at 0%. Once at 94k (taxable income + qualified dividends) the rest would be taxed at 15%. 496k in your example.
@@JeffTeeples what about the 29K standard deduction in 2024? Is that part of taxable income? After taking that out they only have 61K income+div income...
Thank you for the question. It is actually the other way around, thankfully. Before the standard deduction, we have 94k of taxable income to work with. But like you said, it will *reduce* the taxable income, which is a good thing. For example, if you and your spouse made 95k per year, then your first ~28k of qualified dividends would be tax free. Your taxable income would be 95k MINUS the standard deduction. It reduces your taxable income well below 94k, which means the qualified dividends get the best tax treatment (0% taxes).
@@JeffTeeples great, so the 29K are subtracted, which diminishes what's called "taxable income" and puts one in a more favorable tax bracket for dividends... thank you!
Hey Ron, thank you for the question. I think DGRO and VIG are more comparable to each other than they are to SCHD. However, I do feel they are two of the better comps for SCHD. SCHD has an interesting approach and uses a more detailed screening process than its peers. There really is no direct comparison. But I think VIG and DGRO touch on the dividend growth side of SCHD, while something like VYM is closer to the yield. SCHD is great at both.
Good morning, If most money managers cannot beat the market, why should we as individuals be in the market if we are not better than the professionals..
Hey Mitchell, thanks for watching and for the question. Two primary reasons: 1) Dividend growth rate of SCHD has been ~10% CAGR over the past 10 years. The yield on cost from 10 years ago is about 10%, and it will continue to grow (unlike JEPQ) 2) Qualified dividends form SCHD are taxed favorable and do not add to your ordinary income like JEPI, if in a taxable account Yield always seems appealing in the moment (5% for treasuries now, or high yield savings, or 7.5% JEPI, etc), but when we zoom out it is regrettable 100% of the time.
We're looking at very slow price growth with SCHD in forseeable future. If you're okay giving away 10-15% price growth for 3.6% dividends that you have to pay taxes on every year - have at it. DGRO will probably trounce SCHD in total return for next 5 years at least.
Hey Tom. I think you're crossing up the purpose of dividend ETFs here. It depends what you're looking for in your portfolio. It is all about roles. If you're buying either of these for total returns you'll likely be disappointed, long-term, when you zoom out. Much better to go with SCHG, QQQM, or VGT 'for that'. Even cornerstones like VOO and VTI are likely better bets. If you're looking to stabilize your floor because you already have a lot of growth ETFs, SCHD is great. If you're looking for more of a hybrid to pay more dividends (than growth ETFs) and grow more (than SCHD) then DGRO is likely a great play. It is very solid. One of my favorite dividend ETFs. But technically a bit more of a hybrid like VIG or DGRW. I prefer 50% VGT and 50% SCHD than most hybrid funds. They create the same type of mix, and out grow / cash flow the hybrids by a mile. Comparing returns in a vacuum often will not provide actionable information. Just my take. I do agree DGRO is great for an all around ETF, though.
Thanks for the question. That could very well happen in the future. However, right now, I prefer to have more VGT (on the growth side) and SCHD (on the dividend side). That mix creates great results with less overlap. Any amount of DGRO I add will go up and down with VGT quite a bit. SCHD gives me a nice counterbalance to VGT. My best friend and I created a dividend ETF with our own individual stocks last week. I can't wait to see how it shakes out. Our yield is about 2.6% and the 5 year dividend CAGR is around 15%. I'm excited to share more in the future.
Thanks for the comment. No confusion for me. If I'm in talking about dividend stats, saying 'growth rate' would be referring to the dividend growth rate (compound annual growth rate) per the context. Growth, in general, normally refers to price appreciation (if not specifically in the dividend details). Bottom line, dividend growth and growth are the exact same math (regarding CAGR). Let me know if you have any questions, this video touched a bit on both 'growths' throughout. I think it should be fairly simple per context, but it could have gotten gray somewhere.
That is the idea, but why not make it right 100% of the time? Technically we are saying the same thing (: If you had 10 great holdings that you were long in, and you went to buy the 'great entry point', you would want the one that was the most beat up. Right? That is what target allocations have never missed. All things are relative, so 'gut feelings' mean nothing. Charts, to your point, are essentially what targets are doing (buying proportionally to the dipped chart). When you put in that next $100, you'll buy the one with the worst performance since your last DCA in. If everything is way up, you'll 'invest in cash' to stick to your goal %, which ultimately buys the dip when the stocks fall and you are cash heavy. When it 'feels high', you lose hundreds of thousands of dollars by 'waiting for the right time'. Look at the last 10 years. So many 'experts' called the next crash and have lost the masses billions. SELL NOW type orders. The next crash is always now. The next boom is always now. The crazy market that NONE of us will EVER be able to time properly is always now. Timing the market is dangerous. Thankfully it is easy to put on autopilot with a simple system that mathematically can never be wrong over many decades.
What Keith, you're doing it wrong!!!! Totally kidding, there are so many great investing options. So many ways to go about this stuff. I appreciate you dropping a comment.
@JeffTeeples lmao, I'll worry about Yield in my 60s. Right now I need growth. Thanks for the reply. I'm overweighting small caps, they're volatile, but, hopefully, over the long run it'll pay off 🤷♂️
I like SCHD in a taxable brokerage account or in tax-advantaged retirement accounts. I lean taxable (which I know is backwards from what most people do) for a few long-term tax reasons.
Thank you for watching and for the comment. I don't agree with the comment, but that doesn't mean my way of thinking is necessarily correct. Fun to hear different perspectives.
Hi buddy, you know I like your channel but could you please either remove that sad background music or put beat up background thanks. I used to watch your videos at the gym and that background music is killing me 🤣🤣🤣 Thanks
Haha, I appreciate it! I will try to find a better balance. Some don’t like music at all (booooorrrring). I can’t do that. I tried an upbeat one and got comments to stop lol. I’ll see what I can do.
I've $350K in SCHD and will keep building my position.
Daaaaaang, very nice! That snowball is going to be amazing. Keep building.
How much are you making in dividends monthly?
@@TheKRL78I’m making $1K a month in dividends.
I bought 500 k schd
That is very impressive.
Another great video 👍🏻👍🏻👍🏻
I Started in February VOO, QQQM, SCHD $5 each every trading day . MSFT $10 every trading day . Added in March QQQI , SPYI $5 each every trading day 🤞very exciting!
Nice! The right time to always start is now. You’ll be so happy in 10+ years no matter what happens in the short term.
We could lose 40% of our portfolio. Great! Buy more and stay the course (:
The last minute was so real. Stay the course regardless of one bad year!
Thank you for watching all the way to the end Marcos! I appreciate it.
Yeah, we all feel like super heroes when we are hitting all-time highs every week. It’s when the crash happens that we are tested! Stay the course, buy in, and get way wealthier when it turns around (it always does).
Good video I’m at 1160 shares of SCHD and DCA monthly
Very nice Michael! It's great because your dividends will continue to grow on the shares you already have no matter how many more shares you accumulate. DCA monthly to add more just stokes that fire to grow even faster.
This is also my strategy, auto drip with continued DCA.
I’m at 300 shares of SCHD
ThanX so much Jeff.... Great presentation.... Working towards 2,500 shares of SCHD - I DCA.... Have 1800 so far. Also hold DIVO for dividend block of the Foundational Triangle.... Have thought about diving into VIG, DGRO and possibly VYMi but nothing major.... Time will tell.... Will likely keep pushing to get all my Foundational Triangle positions at the recommended level for our ages....As always appreciate all that you do for us. Always looking forward to your videos. Need more TEEPS....!!!! Happy Easter to you and your family. Enjoy the week ahead....
Thank you Lance, I appreciate the kind words. Happy Easter to you and yours as well! I love making these videos and I don't plan on stopping. There are so many great low-cost ETFs that will pave our way to financial freedom.
I will debate with my friend which ETFs are the best in each category (VGT vs QQQM vs SCHG, or VIG vs DGRO vs SCHD)... But then we step back and think they are all great compared to having a 'professional' steal our money with asset under management fees and high cost, actively managed mutual funds.
When we work on this stuff together we all win!
Thank you for the the video, great info I am going to buy my first shares of SCHD this week 🎉
Very nice! Welcome to the club. It will never wow us with lightning returns... But keep adding and the dividend snowball can be deceptively great over time!
Your future self will thank you 😊
Your video made me want to switch from vym to Schd especially if you want to invest in it long term thank you
Thank you for the comment. VYM is a solid ETF, but I think you made a great decision.
All in on schd for my kids, my core 50% holding
Keep it up, great spreadsheets good info
Thank you for watching & for the kind words. You are doing a great thing for your kids! Keep on piling money into that thing and watch the snowball take over!
I agree with your take. SCHD, JEPI, AVUV, international have all been lagging growth such as XLK, VGT, QQQM but that means this is a good time to diversify into such names.
Absolutely. The growths have been dominant, and I'm glad I've been along for the ride (VGT for me). But it's time to load up on the more beat up assets.
in the future, the growth will crash, hard, we just don't know when. And when everyone is screaming to stay away from QQQM / SCHG / VGT... We will rotate and load up on them at a discount to get them back to the target allocations.
This is a very comprehensive breakdown. Thanks for all the hard work you put into the video. You’re helping a lot of people make sense of it all including me 👏 🙏
Thanks Patrick! I really do appreciate that feedback. I aim to make the videos clear and concise. Doesn't always make for the most entertaining watch, but I love sharing this stuff with the world. I want to help as many as possible blaze down the path to financial freedom.
keep pumping out those financial informational videos Jeff!!!!
Holding 537 shares currently. Will keep buying but am more focused on growth positions at the present time.
That is awesome Andy. It is important to stay balanced. I need to drop more growth videos. I feel like I've been beating the dividend drum lately.
I like to keep (about) a third each of: Growth (VGT), cornerstone (VOO), and dividend (SCHD). Balance is key as it allows us to 'buy to our targets' and thus automatically 'buy the dip'.
When VGT crashes, I will 'buy it back' to its 33.3%. Lately, I haven't been buying VGT, but its time will come!
@@JeffTeeples what is your thought on VUG vs VGT, i have a similar split but VUG VOO SCHD
I love your real examples! I am going to watch all your videos lol Would you recommend a small portion in bonds with the rates going down?
Thanks for the positive feedback! I don't like bonds in any market, personally. When rates drop, I would prefer 'more' SCHD like ETFs to capitalize on the dividend growth rate long-term.
I also view my JEPQ as a 'crazy high yield savings account'. I know full well that the value can drop, but, I love the cash-flow with that one.
Bonds have been losers for over 100 years for long-term cash flow because of the nature of them. They are lending a company money as opposed to being an owner and sharing in the profits and growth.
This mindset has nothing to do with the last 10 years only. Bonds have never been better on a prolonged cash-flow basis in history.
With that said...
If you *do* care about the portfolio value (using 4% rule or something like that) at any snapshot in time, bonds can be decent. But they will *always* lose you money over an investing and/or retirement 'career'. It has never not happened.
The real answer is 'it depends' just like all of this stuff.
I’m all in on SCHD, best there is!
Thanks for the comment. I think it is a very well balanced ETF with great methodology. It has been getting a lot of hate lately (compared to 'better' performing dividend ETFs).
What is happening is tech is doing very well. This proportionally boosts things like DGRO and VIG more than SCHD and VYM. These things will come in cycles. But I MUCH prefer VGT (growth ETF, separate from dividend section) to ride the tech wave. For example, a 50/50 mix of SCHD and VGT crushes DGRO or VIG or DGRW over all time periods, while still having a similar amount of dividend cash flow and dividend growth. People will get caught up in return wars per category and lose sight of the overall portfolio performance.
I think SCHD will always be solid if the goal is cash-flow that grows over the years, and also appreciates decently well. It will likely not have the highest total return, but I don't think that is the objective.
My number one div etf is schd. My biggest individual div stocks are CTAS, WM, and ASO.
Nice! It's always fun to select individual stocks on the side instead of rolling 100% with these quality ETFs. I plan to have at least 10% in individual stocks myself.
SCHD is the best and honestly you have to just pick one and be highly convicted that it will be a good investment 20 years from now. Jumping from investment to investment because it’s new or shiny is a bad idea IMO.
Hey Taylor. I could not agree more. Thank you for the comment. If we stay the course (in general, slight allocation adjustments over many years as things change) we will be so much better off! Investors that try to time the market perform so poorly it's crazy. The market is up ~10% per year in the last 100 years, and stock pickers average usually ~3-4%. They somehow find a way to underperform each asset class. It's because of panic selling and moving things around.
I personally really like SVOL, the dividend is great, but not many people like it, so I didn’t invest heavily on it, why?Jeff, do you have any idea? I most invested 3 in my portfolio, 1/3 VOO, 1/3 QQQM, 1/6/SCHD+1/6 DGRO after watching a lot of videos. Also few in SVOL + JEPI after every paycheck. Also , I recently changed my 401k from dated fund to FXAIX, roth IRA to VOO , VUG and VYM.
I love that mix! If you dollar cost average into that portfolio over the years you'll likely be looking very good in the future!
Jeff since I'm new to investing this year I decided to equally invest in dgro and schd for my dividend ETF for my 3 fund portfolio. I feel that they compliment each other and at the same time I won't have fomo if schd stalls while dgro grows as it has been. Best of both worlds I guess lol. My growth is schg and value/foundational is splg since it's basically voo with a slightly lower Expense ratio.
Thanks Jeff for the video since schd been getting so much hate in the last few weeks for no real reason.
I have to say, for someone that is just starting, you are set up better than nearly everything I see! Great work!
SCHG for growth is top notch
SCHD and DGRO for dividends are great
SPLG for the cornerstone is fantastic
I really like DGRO with QQQM and SCHG, specifically. I roll with VGT (which is 100% tech) and SCHD (lowest tech of dividend ETFs). With you using SCHG instead of VGT, I love the addition of DGRO along side SCHD. It balances out you mix very well.
@@JeffTeeples❤
Another great Sunday content vid, Jeff! And congrats on the MoneyWise article that came out yesterday!! I assume you saw that and know that came out Sunday? Happy Easter!!
Thank you Todd! I appreciate the positive feedback. I did see the article, pretty cool. The only part I didn’t like is that it implied I always made $170k per year. I started at $47k and slowly worked up. Didn’t hit six figures until 2018.
But overall, I’m happy, because it will help more people!
Great analyzes., current I am holding SCHD, VOO, VTI, VIG, SCHG WITH DIVIDEND REINVEST
Thanks for watching and dropping a comment. That is an incredible mix of ETFs. Great work!
Whoooh..lot’s of overlap there..Ever thought of diversifying?
I am a big fan of SCHD. One of my core holdings. Keep up the great !
RSB inNC
Thank you for the kind words. I appreciate it!
Another great explanation, excellent! Thanks Jeff!
Thank you for the kind words, Vanessa. I appreciate your support!
Thanks!
Thank you for watching and for your generosity Roxanna!
That was an amazing summary! Great job, thank you for the video
Thank you Giorgio! I appreciate the kind words and I'm glad you liked the video!
GOOD jeff I’m at 300 shares of SCHD
Thanks for the comment. That is a great snowball you have started there. Keep accumulating those shares!
@@JeffTeeples thanks jeff😄
What about JEPQ? Does it just not have a long enough track record for you? Since its inception, it's outperformed SCHD significantly, on dividends as well as gains.
Hey Scott. I like JEPQ quite a bit. But it is far from an SCHD comp. It has a high yield and low dividend growth. And it is invested in primarily growth stocks as it's underlying holdings. SCHD is 100% value stocks.
Growth has smashed value in the past decade, but value has been great when we zoom out 100 years. It is easy to get caught up in the moment, but a fine mix would be desirable.
JEPQ has a 70% weighted overlap with QQQ. It is not your typical dividend stocks, which is why the dividends are not qualified.
Love both, but it is apples to oranges. WE should never compare the returns of growth and value over a short time to establish which is 'better'.
Fun fact, QQQM will outperform JEPQ on total return, and VOO will out pace JEPI. It is just in the math of how they work.
@@JeffTeeples I get the argument about zooming out 100 years, but that also means accepting "average".
If you look at what stocks were the top of the SP500 in 2000, or the Fortune 100, for that matter, it was large manufacturing, energy, and traditional retailers. No longer true. Nvidia operates at a 65% gross / 32% net profit margin. If you look at the top stocks by market cap, there are only a handful in the top 20 that even have physical locations as a major part of their business. Software and finance have significantly lower distribution costs.
Point is, there's a major sea change in the kinds of businesses that outperform, both in their market and in the stock market.
I certainly could be wrong, but I'm prepared to be. If that should shift, it won't happen overnight (or it certainly won't be a problem overnight). For my long-term portfolio, I check both factor and sector performance every month, not just for the current top performers, but the trend. And I reallocate when necessary.
I know that's not *completely* passive, nor the absolute simplest strategy, but it's not *that* difficult. It only takes about an hour a month, tops, and the end result significantly outperforms the broader index, with lower drawdown.
As far as QQQM ourperforming JEPQ, we only have a couple of years of data to go on for JEPQ. Over the past year, they've both performed at around 37%, including the dividends -- so, dead even. But... QQQM had an almost 11% drawdown vs. JEPQ's 6.6%. Same performance, half the drawdown -- I'll take it.
Fair point about non-qualified dividends. My long-term portfolio is all in Roths, so it's a moot point for me. But might not be for everyone. The tax implications of all this do get complicated -- that's a good case for keeping it simple for many people.
I like the way you think. Many other smart people have been there, and without exaggeration, under 2% of actively managed funds by professionals beat the S&P 500 over 20+ year stretches. Again, this is not exaggerated. It's because the S&P 500 automatically grabs the market by value and growth weight real time. No such thing as having to rotate because it is literally self rotating.
I'm with you though, and I'm currently trying to (and succeeding in) trying to beat the market with my personal picks. It seems like it is possible, so why not (:
QQQM is up 53.1% since JEPQs inception. JEPQ is up 42.04% in that time.
Different markets will bring different results, but over a long stretch of time, QQQM will outperform. Basically, they are the same thing (close) on the holdings, and JEPQ purposefully caps its growth in favor of dividends. The math will play out. I agree JEPQ is amazing for cash flow, and I have it for that purpose.
VOO is also smashing JEPI since inception. Identical logic. I've embarrassingly looking into this probably a little too much, lol.
The outperformance is assuming markets go up over time (which they always do, unless something REALLY bad happens). This is the ultimate 'timing the market' zoom out.
@@JeffTeeples Over a very long stretch of time, QQQM and SPY (or VOO or whatever) will probably outperform the vast majority of other individual ETFs.. BUT, there's the rebalancing bonus, aka Shannon's Demon. If you can find the right pace for rebalancing, and the right assets, you can outperform the indices. My current long-term portfolio is based on looking at risk-adjusted returns metrics, particularly Calmar, Martin, and Sortino Ratios. It's then filtered for diversification, e.g., don't need two India funds, or two growth funds, two dividend funds, etc.
Not intentionally, but unsurprisingly, I've ended up with a mix of the best-of-breed in each category, e.g., one factor rotation, one long/short, a large-cap value, a large-cap growth, a midcap quality, an index income, a BDC income, two geographic indices, and four industry sectors.
portfolioslab.com/portfolio/oh19uzlv3ge1un7rbg6glgf0 if you want to take a look.
My intention is to rebalance monthly, but if I stick to whole shares, there probably won't be much of that. More likely to be a reconstitution if something falls significantly performance-wise or something else earns its place.
I have a 5% trailing stop set on most of them - a few with higher volatility, it's more like 7%. That would have kept me out of the worst of 2022 (June and September) for example. As a practical matter, it's more likely for the portfolio to get reassessed around those big bear events.
Happy to discuss with you further offline if you're interested.
Hey Scott. I'm happy with the way I'm set up now. I wish you well with your strategy! I love this stuff, so much fun.
I have SCHD, VYM, VOO, VTI, VGT, XLK, DGRO, QQQM in different portfolios.
You pretty much have all the great ETFs. Nice work. Keep piling into those over the years and you'll be good to go!
@JeffTeeples thank you for your videos, I don't invest in bonds either 🤗
I like your weekly vids. I have actually moved some of my investments around based on your analysis. It was interesting to see the percentages that these funds overlap. Could you do a vid on your recommendation for investing in 5 or 6 of your best funds that have the least amount of overlap between them. I would like to build a long term portfolio on just those. Thanks in advance. NR
Thank you for the feedback and for the idea, Nelly. I appreciate you taking the time to drop a comment. I will be dropping some of my favorite portfolio ideas in the near future. Including updates on my actual portfolio to show how I practice what I preach (:
Jeff thanks for the analysis on this video. Based on one of your comments, would you advocate using SCHD as a alternate to bonds/bond proxy, or do you still have bonds in your portfolio, in addition to the ETFs you use?
Hey Kory, thanks for the question. I will never have bonds in my portfolio unless something MAJOR changes in the future. This is based on 100+ years of data (nothing to do with the recent history). They straight up lose purchasing power over the years for anyone dollar cost averaging in (and never panic selling low) compared to quality dividend stocks & ETFs.
They are ironically the worst for retirees trying to preserve wealth and keeping up with inflation. Sometimes they look attractive by comparison. Guaranteed 5% vs a lower SCHD 3.4% (or whatever it is at that moment). But they never are, ever. SCHD purchased 10 years ago is yielding (randomly this isn't made up) about 10.0% on cost today. It has been strong, but still, crazy stuff.
They don't double your income every 5 to 10 years (conservatively every 10). They won't beat inflation (keep rough pace with it at best). It makes no sense to NOT double your income (with zero reinvestments, living on the dividends) every 6-10 years.
Just look at this SCHD history. This is per share payout WITHOUT reinvesting. You never have to put another penny again to 'grow'.
Per share payout by year:
2023 $2.6580
2022 $2.5615
2021 $2.2490
2020 $2.0284
2019 $1.7242
2018 $1.4393
2017 $1.3457
2016 $1.2580
2015 $1.1466
2014 $1.0469
2013 $0.9038
2012 $0.8100
2011 $0.1217
I show the data just to help make the point it's not 'my opinion' that it works better. The price has also gone up over 3x, but that is just a bonus (it will go up and down over the years, but always up long-term).
Great response. I have tended to agree over the years, and yet my advisors have always had bonds in my portfolio, leaving my portfolio underperforming (from my standpoint). And, of course in 2022 it didn’t offer any balance or downside protection, either. The challenge for me now is adding much more dividend equity using my bonds while markets are pretty frothy. Maybe the solution is dollar cost averaging my bonds into SCHD or the like over a 12-18 months. Thanks again. Enjoying your channel.
Appreciate the comparisons! Happy Easter to you and your family.
Thanks for watching. Happy Easter to you and yours as well! We will be hiding the eggs for all these crazy kids in a few hours!
Hi Jeff,
I'm 20 years old and have a small portfolio of 3 ETFs:
Foundational ETF - VOO 33%
Dividend ETF - SCHD 33%
Growth ETF - QQQM 34%
Question: What do you think of this portfolio and do you think I should make any changes? Should I invest in individual stocks?
I've been dollar cost averaging $1281 every 2 weeks since February and this will end in June (when my internship ends)
That is an incredible mix. Also, very impressive amount to be cost averaging in at 20. Great work!
At 20, I would likely go lighter on SCHD and heavier on QQQM and VOO because you have many years to ride it out. Just never sell low (or ever) and you’ll be looking good in a couple decades.
hey Jeff. Thank you for the amazing content as usual. Big fan here. perhaps you can help me out here. I'm writing from Singapore. Singapore and US does not have a tax treaty. Meaning If I invest in the SCHD, I'm subjected to a 15% withholding tax. It will automatically deduct 15% from the dividend payout. With that in mind. Do you think is still worth investing in SCHD ? or is there other dividend growth etf I should consider? Like JEPQ or others?
Thank you for supporting the channel. I'm glad you are liking the content. Unfortunately, I don't know enough about investing outside of the US to answer your question. I don't want to provide an answer that can be misleading. I hope to learn more in the future (getting more and more of these questions, need to study up over the years).
Great content, thanks.
Q: Do you hold VGT and SCHD in multiple account types (trad & roth IRAs, brokerage, etc) ?
Hey David, thanks for watching and for the question. I hold all of my VGT in my traditional IRA, and SCHD in my traditional IRA + taxable account.
I know this seems backwards to a lot of people, but it technically makes more sense mathematically. I am basically guaranteeing that I'm never taxed more than 15% on the SCHD dividends and growth, and my kids get it free of capital gains (step up cost basis) when I die. And, most the dividends will be taxed at 0% for life in a taxable account when my wife retires. Traditional IRA dividends will ALWAYS charge at least 12% for life (to take it out or convert it to Roth).
Here is a video where I (kind of) explain the logic. I will say anything that pays 100% qualified dividends is great in any type of account (retirement or taxable).
ua-cam.com/video/iCB8rNWnUmc/v-deo.htmlsi=DDpURGO69P1sR6lp
Thank you for sharing this Jeff, I would like to know what you think of JEPI, thank you again
Thank you for the question Pablo. I really like JEPI and JEPQ. They are my favorite covered call ETFs overall. Reasonable expense ratios at 0.35% for actively managed funds.
@@JeffTeeples Thank you for your answer Jeff, I feel calm now 😂
I have a question about VOO. Why do you invest in VOO over SPLG? They seem like the same fund but SPLG has a lower expense ratio.
Hey Ryan, thank you for the question. SPLG is great! I like VOO because I am a huge fan of the Vanguard name in the low-cost ETF world, and the assets under management are always very high. I know they are never going anywhere, and they have earned my trust over the years.
(SPLG isn't going anywhere either, just explaining why I like Vanguard funds).
@@JeffTeeples- I can't afford VOO, but I can with SPLG.
@tonioyendis4464 bummer that your online broker doesn’t allow fractional shares. In that case I would roll with SPLG.
Hi Jeff
What do you think about VOO and VTI as Cornerstones, SCHD for dividends and SMH, QQQM and XLK for growth. How much of overlap is there between SMH, XLK and QQQM? Do you think this portfolio will work for a new investor looking for short term growth and long term stability
Thanks for the question Ali. I think that is a fantastic portfolio!
VOO and VTI make for a great cornerstone, and SCHD is my favorite dividend ETF to counterbalance the growth ETFs well (low in tech, so it doesn't just follow trend of growth ETFs).
SMH, XLK, and QQQM have a decent amount of overlap. But that isn't relevant because they are all in your growth section. So as long as you keep the overall growth section to a set amount (say 40%, for example), you are good to go. XLK has 100% overlap with XLK. QQQM has 100% overlap with QQQM. You see the point. Overlap doesn't matter 'within a section' of your portfolio.
And with SCHD as your dividend ETF, you will have VERY little overlap with your growth section regardless.
Also, everything overlaps a solid amount with VOO and VTI as well. Remember, this is also mostly meaningless, as these literally are 'the market'. Of course selections from growth and dividends will include the top US companies at all times. VTI is... well, all of them. So you are good to go with VTI or VOO being anywhere from 0% to 100% of your portfolio. I see some people get stuck on overlap with cornerstones, which doesn't make sense.
@@JeffTeeplesthanks so much for clear and lucid reply so promptly. Love the channel and i am a subscriber
Thanks for all the info Jeff great video. Do you prefer to have DGRO over DGRW. I'm brand new to all of this thanks so much. And I'm much older. Thanks again.
Hey Jenn. Thanks for watching and for the questions. You'll pick this stuff up in no time.
I think DGRW is a great ETF, but it is 'more like' a cornerstone holding. A VOO or VTI.
It's not official language, but I like to break down a well balanced portfolio into 3 sections:
Growth ETFs: These usually don't pay a large dividend, but they grow the price over time. The companies will generally reinvest most of the net income to expand the business, instead of paying dividends. My favorites here are VGT, QQQM, and SCHG.
Then there are the cornerstone holdings. Broad US market funds that hold a bit of everything. These are the type of ETFs that give you a bit of everything. Value companies, growth companies, dividend payers and growers, and everything in between. My favorite is VOO (500 of the largest companies in the US), but VTI is also great (ALL stocks in the US). I think DGRW 'mostly' fits in here. It's dividend yield is barely higher than VOO, and it has 300 holdings with a weighted overlap of 45%. This means they are 45% identical. I consider it a solid cornerstone holding.
Dividend ETFs, like SCHD and DGRO, will focus on paying and growing the dividend. They are higher yield (more cash in your pocket) than the growth and cornerstones, but 'typically' (not always) will have lower returns when we zoom out over long stretches of time. They are good 'floors' for portfolios when the growth ETFs collapse at times (and they will). SCHD stays a LOT more stable than VGT, for example, over the years (these have been my two main holdings for years).
I think it's healthy to have a nice mix. Cornerstones are always great (up to 100% is fine). Dividend ETFs will generally be more desirable when you're in or close to retirement. Growth ETFs will generally want more weight when you are young and have many years to handle the rollercoasters.
I'm almost 42 years old, and I prefer about a third of each 'type' right now.
Omg thank you so much Jeff! Your knowledge is greatly appreciated. Thanks again for the response
@@JeffTeeples awesome reply/ comments... well thought and detailed out reply... Appreciate that....
Thank you for the kind words. I really appreciate your extra support. Means a lot!
Jeff - This is another great video! I hold SCHD and I great appreciate your analysis and assessment of the recent reconstitution.
What individual stock do you hold outside of ETFs?
Hey Bruce, thank you for the positive feedback on this video! I should finally put out some more stuff now that all of my year-end and first quarter SCHD is out of the way (: Time for more growth coverage!
I am going to be releasing the full details of my individual holdings to the members in the coming weeks. I've been on the fence about this, but I'm okay showing the full details. I own 25 in the HODL factory that has performed well, and 25 in a dividend growth ETF I started last week to focus on yield and growth (2.6% yield with a 15% dividend CAGR roughly).
I'm not going to give details about my screeners and spreadsheet process (it has MANY more steps than the ETFs I buy and hold like SCHD), but the results will be fun for people to be able to track (it will show how much I own, and cool high level stats like weighted yield and CAGR, and performance vs the market and other dividend ETFs).
I will always share the high level information for free to everyone, as the goal is to help the masses reach financial freedom. It is all I care about honestly. But... I am trying to find ways to provide some bonus content to members! I really appreciate the support! I'm not in this for the money, but I did leave a lot of money to do this if that makes sense.
I’m trying to forecast schd over a 40 year hold period, what dividend cagr and annual price appreciation do you think would be reasonable to assume for the long term ?
Dividend cagr for schd on 10 year is 10%ish but the last few years it has dropped like a rock to now low single digits …
Great question. Impossible for us to nail it, but...
My favorite dividend CAGR to use is the lower of the 5 and 10 year CAGRs (in general for these projections).
However, you're right, it has fallen quite a bit lately. Perhaps making multiple scenarios would get a better 'best and worst' case solution.
I think using 6% is reasonable. I know it has been bad, but historically it has never been below 7% (excluding 2023).
Safest way is to just use the total return number for 40 years and then multiply that result by the current / typical yield (might as well call it 3.5%).
Most people project way inaccurately and use 10% for the dividend growth rate and something less than that for the price appreciation. That simply won't happen over long periods of time, less something is starting of very a very low initial yield. SCHD at 3.6% is a pretty good yield already and many of the stocks that it holds have a moderate to sometimes high payout ratio.
Plus, even if the dividends increased 10% each year for 40 years the price would have to go up, on average, by at least that same amount else you get a huge price to yield distortion that won't happen in the real world. Since SCHD's NAV is very close to the daily price, for SCHD to get overly distorted you'd have to have the majority of the holdings paying very high yields down the road.
Question: on the greedy/ fearful, if you cant buy in balance monthy, where should you be putting funds until your annual rebalance (like growth vs SCHD vs 500)?
If my question makes sense. Like i try to buy monthly to maintain my portfolio balance but its not exact/ should i buy what is at a discount always? If no discount should i buy what i anticipate to grow more?
Thanks for watching & great question Dominic. Warren Buffett will sit on cash for MONTHS (shoot, years even) at times looking for a great company at a discount.
However, as a robot, I use an automated system to follow the quote. I like to stay invested in the market instead of sitting on the sidelines.
I strictly buy to the target allocations with new dollars. This will buy what is at a comparative discount automatically. It will also keep you in balance throughout the year. Before I left my job to start this channel, I didn't have to 'rebalance' very often (if ever). My wife and I had enough 'new dollars' to 'rebalance real time' as I bought the new positions.
For example, I have been buying a LOT of SCHD over the past year and a half. This has helped it keep up with VGT.
@JeffTeeples thanks for the response. Makes sense. Thanks for all you do.
DGRO vs SCHD: DGRO max performance is better than SCHD (130% vs 107%) . Your data also indicates that DGRO is better. Your thoughts please!
I like SCHD better, personally. That is mostly because I am a VGT holder, so the overlap and portfolio balance matters to me. DGRO is great as well. SCHD has a higher total returns over the past 5 years, and a higher dividend growth rate over the past 5 years. I think DGRO will pass SCHD in the dividend CAGR (as it has lately, this will trickle to long-term as well).
So I see SCHD as superior yield and low-tech coverage with solid growth rate.
DGRO is superior growth rate with solid yield and some overlap with growth ETFs (not horrible, but not proper floor role either).
Both great. I think DGRO is fantastic with QQQM or SCHG as growth mains.
@@JeffTeeples Thanks!
Is the screening and reconstitution done by the Dow Jones US Dividend 100 Index or by SCHD?
Hey Jeff. Thanks for watching and for the question. It is done by the index itself, and SCHD seeks to track said index. So the answer is kind of both. Thanks!
I just saw your interview on Moneywise, congrats!
Thank you! My wife showed me that the other day. I didn’t know my Ari interview spread like that! No complaints here. I want to reach as many people as possible. Anyone can do this stuff! (:
@@JeffTeeples they can! Although so many people never even try to understand and just give 1% to an advisor..🤦🏻♂️
@@CraigandMandy1 to grossly underperform the market 99.9% of the time. That ‘low’ 1% is hundreds of thousands of dollars over the years. Ouch!
SCHD and other dividend income equities like utilities have suffered with higher interest rates. Funds flowed from risk assets to fixed income like treasuries and money markets
If yields drop, the reverse should occur. Money will flow from fixed income to risk assets like SCHD
I dont have a crystal ball. But I do know that the current fed funds rate, the national debt is growing at one trillion dollars per quarter. So im buying as much SCHD for myself and family members as our resources allow.
Hey Chris, GREAT points. I'm not one to make predictions, such as when the next crash is coming, when is the best time to invest, etc. BUT, I completely agree with you and your logic. 'Eventually' things will flip and it will make a lot of sense. Usually at that point, people are too late to 'get in' at the great price.
It's why I simply buy to my target allocations. Right now, I'm loading up on SCHD because my VGT and VOO are going to the moon the last year+. When VGT crashes, I'll be buying it (automatically to get it back to its target allocation). I don't officially state 'buy this now' because I admit I don't know the exact timing of things, but I do know what will happen 'over time' when accounting for the regression to the mean. And what you said is spot on IMO.
Hi Jeff,
I hold SCHD and quite a few other great ETF’s divided into 6 pies.
Have you ever heard of Ben Felix and his Factor Portfolio of ETF’s? He uses Dimensional Fund Advisors (DFA Funds) which I use to have too thru a qualified manager. I stopped using them just due to the expenses.
But Ben Felix has a non DFA factor portfolio equivalent which uses Vanguard and Avantis ETF’s.
I was curious if you know about it and what you think about his non DFA equivalent portfolio? Thanks man.
The name rings a bell, but I'm not aware (or don't remember) the factor portfolio of ETFs.
Related but slightly different (just thinking about stock picking in general):
I do have a formula for picking stocks that I've worked on with my friend over the last year. It is fairly elaborate (not just a few factors like most popular ETFs, 10+ screens and 10+ weighted ranks for scoring in a spreadsheet that racks and stacks the companies). I feel like it will be a long-term winner, but I really don't know yet. If it is, I am planning on starting an ETF some day (it's a pain to get it going, but if I have a winner I'll make it happen, been a long-time goal of mine (before starting the HODL Factory, which is what we call our portfolio )). Of course the expense ratio will be low (:
It's very early, but we are up 55.72% to the markets 26.89% (using VOO) since inception in April 2023. It could be dumb luck, and maybe it will underperform when the market isn't bulling along. So I want to give it time before I REALLY start sharing. Very exciting stuff (at least for nerdy me, lol).
@@JeffTeeples It’s very exciting to me as well. I’m obsessed with this stuff. I’ll invest in your ETF, that’s for sure.
Hi Jeff, if i have 25k in SCHD today, how many years will it take to turn 500k and million, considering both the options of dividend reinvestment and no dividend reinvestment. How much yearly investment would you recommend on top of 25000 to hasten the compounding process.
Second, why have VOO when SCHD keeps up with the market, why not go 50% each with growth and dividends?
Hey Ali, thank you for the questions. I don't think having 50% dividend ETFs and 50% growth ETFs is a bad idea (as long as we select solid long-term performers that are passively managed). I like to add in S&P 500, personally, as a cornerstone holding that will produce positive results long-term no matter what. Nobody has ever lost to inflation over any 20 year stretch of time dollar cost averaging into the S&P 500 over the past 100+ years. Not once. I like that security and guaranteeing my share of the markets returns.
SCHD has not, and likely will not, keep up with VOO over *long* stretches of time. It's too early on to see that play out, so I guess we'll have to check back in 10-20 years. But I think VOO will have better total returns because of including more growth stocks. SCHD will be a lot more stable.
The 25k question has a lot of variables. If you put in $1,000 per month, and it grew at 10% (total returns, including dividend reinvested), you would be there in 15 years. $500 per month will take 19 years.
Makes good sense, thanks for being so nice with novices
Of course. I think the secret is that we are all novices, myself included. There is so much to learn. I like the idea of learning together over the years.
Can you please share your spread sheet , its awesome
Thank you for the positive feedback. I do share the spreadsheets from these videos with my channel members. It is a way to support the channel and to (hopefully) prevent me from taking future sponsorships that I don't believe in. All videos I share with information will be 100% free. Wanted to find a way to add perks as a thank you for the support.
@JeffTeeples but where is spread sheet ? I don't see it
It is under the membership perks on the channel page. But the membership is fully optional.
Thanks, Jeff. Good info, as usual.
May I suggest that you don’t compare stocks with the Godhead or “Holy Trinity”.
Hey Tommy. Thank you for the positive feedback. It is a very commonly used and fitting comparison, however, I will try to think of a new one. Thanks!
Can anybody explain why FDVV is rarely brought up in dividend ETF convos? It has a high yield, growth, and relatively low expense ratio. What am I missing on why this one isn’t popular?
That is actually a great question.
I wager that it is almost exclusively the way that articles and content creators on UA-cam just jumped on SCHD for some reason, with the rest being the more stable and up trending dividend income stream.
Technicals, FDVV mas drawdown was a bit higher than SCHD, but overall, more price appreciation, pretty high dividend, BUT, the dividend from year to year is way more up and down while SCHD has been more of a steady Eddy with the trend up from year to year. Don't get me wrong as FDVV's income stream has an upward trend BUT the dividend from 2019 to 2021 was a big drop and then from 2021 to today a big upswing. If you were retired and needed to be able to plan on steady income, you really can't budget around FDVV.
If you have more than enough income and are ok with a holding's income bouncing around but trending in the right direction over time, FDVV is a great fun. If your income from dividends though, is pretty close to your spending FDVV might be a bit of income risk that you don't need.
Just guesses of course, but from the 5,000 foot level, that is what I see.
I have heard quite a bit about FDVV over the years. I will add it to my future video list to get it some spotlight. For me, personally, I do SCHD to balance out my portfolio. FDVV is a bit higher in tech (which is totally fine for someone not heavily invested in VGT in the growth section).
I'm going to add it to my ETF Compare tracker and keep a closer eye on it.
Thanks Jeff! Looking for a few dividend ETFs to balance with SCHD, and FDVV seems to be a better compliment than DGRO from my perspective. Would definitely appreciate your analysis skills on that.@@JeffTeeples
I currently have a target date fund with my work 401k, then i invest in schd, vgt, and voo in my Roth IRA and HSA brokerage accounts. Does this sound like a solid plan?
Absolutely! If your work has a low cost S&P 500 fund, I would highly recommend that instead. Many companies offer this (I would say most do). However, a target date fund isn't the worst thing in the world to have IF it has a low expense ratio. Some of them are over 0.50%, which is not great at all long-term. At that point, I would roll with whatever the low-cost, broad market fund is.
As far as your Roth and HSA, I wouldn't change a single thing. Great work!
Thanks Jeff, much appreciated!
@@JeffTeeplesLooks like my work offers VINIX appears to be a fund that tracks the S&P 500
Awesome! VINIX works perfectly!
@@JeffTeeplesThanks Jeff!
Im a bit scared of all those financials. Hope to see the weighting soon
I hear ya, financials are a bit all over the map. They pay great dividends, and grow them, but have deceptive results in other areas (such as total return) often times.
SCHD is lower than VIG and DGRO in financials by a bit. They are between 17-20% though, fairly close.
great video! keep up the great work!
Thank you for watching and for the kind words. Will do!
Hypothetical question about qualifying dividends.
Husband and wife make 90k taxable income, but they make 500k in qualifying dividends. What is their tax?
Thank you for the question! The first 4k would be taxed at 0%. Once at 94k (taxable income + qualified dividends) the rest would be taxed at 15%. 496k in your example.
@@JeffTeeples thank you!
@@JeffTeeples what about the 29K standard deduction in 2024? Is that part of taxable income? After taking that out they only have 61K income+div income...
Thank you for the question. It is actually the other way around, thankfully. Before the standard deduction, we have 94k of taxable income to work with. But like you said, it will *reduce* the taxable income, which is a good thing.
For example, if you and your spouse made 95k per year, then your first ~28k of qualified dividends would be tax free. Your taxable income would be 95k MINUS the standard deduction. It reduces your taxable income well below 94k, which means the qualified dividends get the best tax treatment (0% taxes).
@@JeffTeeples great, so the 29K are subtracted, which diminishes what's called "taxable income" and puts one in a more favorable tax bracket for dividends... thank you!
Do you think DGRO or VIG are comparable to SCHD?
Hey Ron, thank you for the question. I think DGRO and VIG are more comparable to each other than they are to SCHD. However, I do feel they are two of the better comps for SCHD. SCHD has an interesting approach and uses a more detailed screening process than its peers.
There really is no direct comparison. But I think VIG and DGRO touch on the dividend growth side of SCHD, while something like VYM is closer to the yield. SCHD is great at both.
Another excellent video!
Thanks Dru! I appreciate it! Now it's time to make a video about something other than SCHD (:
Good morning,
If most money managers cannot beat the market, why should we as individuals be in the market if we are not better than the professionals..
You knocked this one out of the park. Most people shouldn't try to beat the market (:
Why not put that money in JEPI instead? You get a 7.5% yield with JEPI vs. 3.33% with SCHD.
Hey Mitchell, thanks for watching and for the question. Two primary reasons:
1) Dividend growth rate of SCHD has been ~10% CAGR over the past 10 years. The yield on cost from 10 years ago is about 10%, and it will continue to grow (unlike JEPQ)
2) Qualified dividends form SCHD are taxed favorable and do not add to your ordinary income like JEPI, if in a taxable account
Yield always seems appealing in the moment (5% for treasuries now, or high yield savings, or 7.5% JEPI, etc), but when we zoom out it is regrettable 100% of the time.
We're looking at very slow price growth with SCHD in forseeable future. If you're okay giving away 10-15% price growth for 3.6% dividends that you have to pay taxes on every year - have at it. DGRO will probably trounce SCHD in total return for next 5 years at least.
Hey Tom. I think you're crossing up the purpose of dividend ETFs here. It depends what you're looking for in your portfolio. It is all about roles. If you're buying either of these for total returns you'll likely be disappointed, long-term, when you zoom out. Much better to go with SCHG, QQQM, or VGT 'for that'. Even cornerstones like VOO and VTI are likely better bets.
If you're looking to stabilize your floor because you already have a lot of growth ETFs, SCHD is great. If you're looking for more of a hybrid to pay more dividends (than growth ETFs) and grow more (than SCHD) then DGRO is likely a great play. It is very solid. One of my favorite dividend ETFs. But technically a bit more of a hybrid like VIG or DGRW.
I prefer 50% VGT and 50% SCHD than most hybrid funds. They create the same type of mix, and out grow / cash flow the hybrids by a mile.
Comparing returns in a vacuum often will not provide actionable information. Just my take. I do agree DGRO is great for an all around ETF, though.
@@JeffTeeplesYou have to consider the taxes you'll pay on having 50% of your portfolio paying high dividends.
@@tomsettles6873 0 to 15% isn’t bad. Tax understanding is one of the most misunderstood topics in personal finance.
Why not go 50/50 SCHD/DGRO as far as ETFs go?
Of course the percent allocation to each depends on one’s horizon. I’m 20 years from retiring and going with the 50/50 split.
Thanks for the question. That could very well happen in the future. However, right now, I prefer to have more VGT (on the growth side) and SCHD (on the dividend side). That mix creates great results with less overlap.
Any amount of DGRO I add will go up and down with VGT quite a bit. SCHD gives me a nice counterbalance to VGT.
My best friend and I created a dividend ETF with our own individual stocks last week. I can't wait to see how it shakes out. Our yield is about 2.6% and the 5 year dividend CAGR is around 15%. I'm excited to share more in the future.
@@JeffTeeples very cool! Thanks for the reply
Were you confusing growth rate with dividend growth rate? Surely not, but it sounded like it.
Thanks for the comment. No confusion for me. If I'm in talking about dividend stats, saying 'growth rate' would be referring to the dividend growth rate (compound annual growth rate) per the context. Growth, in general, normally refers to price appreciation (if not specifically in the dividend details).
Bottom line, dividend growth and growth are the exact same math (regarding CAGR). Let me know if you have any questions, this video touched a bit on both 'growths' throughout. I think it should be fairly simple per context, but it could have gotten gray somewhere.
Or... maybe learn charts and buy the dip?? Not to trade but to get great entry points
That is the idea, but why not make it right 100% of the time? Technically we are saying the same thing (:
If you had 10 great holdings that you were long in, and you went to buy the 'great entry point', you would want the one that was the most beat up. Right? That is what target allocations have never missed. All things are relative, so 'gut feelings' mean nothing. Charts, to your point, are essentially what targets are doing (buying proportionally to the dipped chart).
When you put in that next $100, you'll buy the one with the worst performance since your last DCA in. If everything is way up, you'll 'invest in cash' to stick to your goal %, which ultimately buys the dip when the stocks fall and you are cash heavy. When it 'feels high', you lose hundreds of thousands of dollars by 'waiting for the right time'. Look at the last 10 years. So many 'experts' called the next crash and have lost the masses billions. SELL NOW type orders.
The next crash is always now. The next boom is always now. The crazy market that NONE of us will EVER be able to time properly is always now.
Timing the market is dangerous. Thankfully it is easy to put on autopilot with a simple system that mathematically can never be wrong over many decades.
I have 0 shares of SCHD.
What Keith, you're doing it wrong!!!! Totally kidding, there are so many great investing options. So many ways to go about this stuff. I appreciate you dropping a comment.
@JeffTeeples lmao, I'll worry about Yield in my 60s. Right now I need growth. Thanks for the reply. I'm overweighting small caps, they're volatile, but, hopefully, over the long run it'll pay off 🤷♂️
2nd
They say 2nd place is the first loser. I disagree! You're both winners.
First!
Look at you all ready to go. Love it. Thanks!
I have 2729 shares of SCHD… my goal is 69,420 share
lol, that is a good goal! 2,729 is not so bad either! Keep that snowball rolling!
Is recommended buy SCHD in individual brokerage account
I like SCHD in a taxable brokerage account or in tax-advantaged retirement accounts. I lean taxable (which I know is backwards from what most people do) for a few long-term tax reasons.
Thanks for the comment
It's great over price because crypto bleedoff moved into this fund all the rest of them. Etf very dangerous if anything happens.
Thank you for watching and for the comment. I don't agree with the comment, but that doesn't mean my way of thinking is necessarily correct. Fun to hear different perspectives.
Hi buddy, you know I like your channel but could you please either remove that sad background music or put beat up background thanks. I used to watch your videos at the gym and that background music is killing me 🤣🤣🤣 Thanks
Haha, I appreciate it! I will try to find a better balance. Some don’t like music at all (booooorrrring). I can’t do that. I tried an upbeat one and got comments to stop lol. I’ll see what I can do.
🤣🤣🤣 hard to please everyone but the content is as usual AWESOME. Thanks
You married a single mother didn't you?
Wtf?
Lol, nope. *looks confused while laughing
*shrug