I'm trying to figure out what the best dividend ETF is and if SCHD is still the top choice for most dividend investors. To do that, I will be comparing SCHD against the competition which includes: VNQ VPU DVY VYM BND Videos mentioned in this video lol 1. Best Income ETFs: ua-cam.com/video/BNq_cBxn-YA/v-deo.html 2. Individual Stocks vs ETFs: ua-cam.com/video/MgXHjtNy9cQ/v-deo.html 3. Why SCHD is loved: ua-cam.com/video/mIPHdoTZoSw/v-deo.html 4. What happens if you invest into 500 SCHD shares: ua-cam.com/video/3G7qc1OOGZo/v-deo.html Support the Cheeseburger Guy? Do me a solid and just tap 'like' on this video.
I made a boo boo on a slide. Early on in the video, I put Index Fund = ETF. What I meant to put was Index Fund ≈ ETF, in that an index fund can be an ETF. It can also be a mutual fund. So sometimes there is no difference between an ETF and an index fund, they can be the same thing. VTSAX is an index fund that is a mutual fund. VTI is an index fund ETF. The difference between an ETF and a mutual fund is in how they trade. But either one of them can be an index fund, or an actively managed fund. So an “index” fund is a description of what the fund invests in, not how it trades. An index fund invests according to a particular index that tracks a segment of the market (the S&P500 is just one index), it does not have a manager that chooses stocks based on particular criteria (that’s called an actively managed fund).
I think it would be a good follow up to talk about the prospectus of these ETFs, especially SCHD since they're so transparent with how they gauge stocks and what metrics they focus on for future success. Wonder if the SCHD formula could work for basic retail investors that like doing their own math?
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
@organic3132 As a guy who lives in Japan as an expat, I can tell you I would never invest into any Japanese company let alone a car company. Japanese stocks are cheap for a good reason. Their business fundamentals are solid, good operations, above average balance sheets, etc. But, it's not shareholder friendly in terms of share appreciation, stock buybacks, & the company prioritizes growth differently than US companies. Similar situation to South Korean stocks. The big name players also have low p/e ratios but I also wouldn't invest into them. Remember, p/e ratio is only ONE metric. Right now, the only stock I'm eyeballing is SCHD (for the time being). Im gonna scout for some more companies and then do deep dives to see if there's any hidden gems. Almost everything is overpriced right now though
And then of course the USD to JPY rate is bonkers. Currency issues do matter, but the bigger issue is corporate culture. Japan and Korea don't have the same idea of fiduciary duty that we do in the west. No stock in the west can sit at a 20% FCF yield or below net cash for long because investors demand the cash either be put to use in the business or distributed. No such impetus exists in corporate culture of Japan - many businesses just sit on a growing cash pile, and because the interest rate is so low there, they don't even make any money on it. A net-net is all well and good but what does it matter if they sit on that cash for 20 years before anything happens? If you can identify businesses where this is changing - because gradually, it does seem to be changing - you may be able to do pretty well for yourself in these markets.
An index fund can be an ETF. It can also be a mutual fund. So sometimes there is no difference between an ETF and an index fund, they can be the same thing. VTSAX is an index fund that is a mutual fund. VTI is an index fund ETF. The difference between an ETF and a mutual fund is in how they trade. But either one of them can be an index fund, or an actively managed fund. So an “index” fund is a description of what the fund invests in, not how it trades. An index fund invests according to a particular index that tracks a segment of the market (the S&P500 is just one index), it does not have a manager that chooses stocks based on particular criteria (that’s called an actively managed fund).
Exactly my point. It is an incorrect to say “index fund” equals “etf.” Those terms do not mean the same thing, nor are they interchangeable. Good video.
Index fund measures an industry or market as mentioned in the video. An ETF is a stock that represents an index fund according to their own definition lol.
I'm trying to figure out what the best dividend ETF is and if SCHD is still the top choice for most dividend investors. To do that, I will be comparing SCHD against the competition which includes:
VNQ
VPU
DVY
VYM
BND
Videos mentioned in this video lol
1. Best Income ETFs: ua-cam.com/video/BNq_cBxn-YA/v-deo.html
2. Individual Stocks vs ETFs: ua-cam.com/video/MgXHjtNy9cQ/v-deo.html
3. Why SCHD is loved: ua-cam.com/video/mIPHdoTZoSw/v-deo.html
4. What happens if you invest into 500 SCHD shares: ua-cam.com/video/3G7qc1OOGZo/v-deo.html
Support the Cheeseburger Guy?
Do me a solid and just tap 'like' on this video.
I made a boo boo on a slide. Early on in the video, I put Index Fund = ETF. What I meant to put was Index Fund ≈ ETF, in that an index fund can be an ETF. It can also be a mutual fund. So sometimes there is no difference between an ETF and an index fund, they can be the same thing.
VTSAX is an index fund that is a mutual fund. VTI is an index fund ETF.
The difference between an ETF and a mutual fund is in how they trade. But either one of them can be an index fund, or an actively managed fund.
So an “index” fund is a description of what the fund invests in, not how it trades. An index fund invests according to a particular index that tracks a segment of the market (the S&P500 is just one index), it does not have a manager that chooses stocks based on particular criteria (that’s called an actively managed fund).
Love your videos man! The way you mix in comedy with the knowledge and tips is hilarious, Keep bangin em out!
I think it would be a good follow up to talk about the prospectus of these ETFs, especially SCHD since they're so transparent with how they gauge stocks and what metrics they focus on for future success. Wonder if the SCHD formula could work for basic retail investors that like doing their own math?
great video man! thanks
SCHD is king!
…or is it?? I think BND will run circles around it
@@UsernameAmos BND? .04 return ytd.
I like dgro
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
I love Zevia too. Target makes a nice and much cheaper knockoff.
Wait really?? As a TGT shareholder I should buy the in house brand instead!!
FDVV or DGRO
i own both of these.
What do you think about HMC stock? Are you investing in something like that? Looks cheap to me.
@organic3132 As a guy who lives in Japan as an expat, I can tell you I would never invest into any Japanese company let alone a car company. Japanese stocks are cheap for a good reason. Their business fundamentals are solid, good operations, above average balance sheets, etc. But, it's not shareholder friendly in terms of share appreciation, stock buybacks, & the company prioritizes growth differently than US companies. Similar situation to South Korean stocks. The big name players also have low p/e ratios but I also wouldn't invest into them. Remember, p/e ratio is only ONE metric. Right now, the only stock I'm eyeballing is SCHD (for the time being). Im gonna scout for some more companies and then do deep dives to see if there's any hidden gems. Almost everything is overpriced right now though
And then of course the USD to JPY rate is bonkers. Currency issues do matter, but the bigger issue is corporate culture. Japan and Korea don't have the same idea of fiduciary duty that we do in the west. No stock in the west can sit at a 20% FCF yield or below net cash for long because investors demand the cash either be put to use in the business or distributed. No such impetus exists in corporate culture of Japan - many businesses just sit on a growing cash pile, and because the interest rate is so low there, they don't even make any money on it. A net-net is all well and good but what does it matter if they sit on that cash for 20 years before anything happens?
If you can identify businesses where this is changing - because gradually, it does seem to be changing - you may be able to do pretty well for yourself in these markets.
@@UsernameAmosThat was unexpectedly good answer, thank you 🇺🇸
4:43 😂
Lie-ster?
I'm pretty sure it's pronounced Lester. How spursy of you.
Ynwa!
I appreciate your channel.
LOL - yeah i'm an idiot. Hopefully the Spurs form gets better!
What about cdgv and dgro
Coming up in part 2!!
@@UsernameAmos cgdv not cdgv lol good video mate 🙂
Add DIVB too, please.
Hey! Lay off Burger King! Woopers rule Big Macs drool.
Australian dividend ETF VHY pays a much better dividend %
That's true, but less growth and heavy dependence on financials and industrials.
why dont you pronounce t's and' d's at the end of words
Speech impediment. Also can't properly pronounce -th at the end of words
We don't need no stinking ETF....we bought PZZA.
Hahaha, I haven't sold yet. I'll wait until it hits $60 a share and then consider my options.
“Index fund” does not equal “ETF.” Many, if not most, ETF’s are actively managed, and not based on an index.
An index fund can be an ETF. It can also be a mutual fund. So sometimes there is no difference between an ETF and an index fund, they can be the same thing.
VTSAX is an index fund that is a mutual fund. VTI is an index fund ETF.
The difference between an ETF and a mutual fund is in how they trade. But either one of them can be an index fund, or an actively managed fund.
So an “index” fund is a description of what the fund invests in, not how it trades. An index fund invests according to a particular index that tracks a segment of the market (the S&P500 is just one index), it does not have a manager that chooses stocks based on particular criteria (that’s called an actively managed fund).
Exactly my point. It is an incorrect to say “index fund” equals “etf.” Those terms do not mean the same thing, nor are they interchangeable. Good video.
ETF does not equal Index Fund
Index fund measures an industry or market as mentioned in the video. An ETF is a stock that represents an index fund according to their own definition lol.
Sorry cheese, but it's football, not soccer. Nice video, tho.