Thanks for the kind words and the comment. FDVV has had a very impressive total return history so far. I wish you well with it. I think it is a solid dividend ETF, and I have my eyes on it (:
Will do Kevin. More to come this week. Going to release videos as I have them ready to keep up with the times a little more (: They will be just a nerdy, but not 2 or 3 weeks late like usual.
Hey Jed. It is a very solid performing ETF. Hard to come up with anything bad to say about it. I think it will do well moving forward (long-term) as well.
ThanX Jeff.... Great stuff..... I have been watching this bad boy for awhile..... but still working on my commitment to SCHD and DGRO and JEPQ percentages.... Your breakdowns are excellent dissecting everything well.... Just look at the numbers - well, you are an accountant..... Love your work... Keep ups he great work and I look forward to your next one.... whenever it drops - I will be there..... Stay safe.....
Hey Lance. One thing you can always count on from me is the nerdy analytics. You can take Teeps out of accounting, but you can't take accounting out of Teeps! Thanks for your extra level of support for the channel. It's been fun. I think I'm going to have a video drop on Wednesday and Friday this week. This will not be the normal, but getting out the backlog to get a bit more up to date.
Hey Tom. Thanks for watching and for the feedback. I think FDVV is solid, so I didn't want to come off sounding like a hater. But it is weird to compare it only to something like SCHD or DGRO. It is more akin to a hybrid fund, and I personally would rather have SCHD + *insert growth* rather than something like FDVV. Doesn't make it bad at all of course. I'm just a guy (:
I almost bought FDVV instead of SCHD about 2 years ago. The overlap with VGT, QQQM, & SCHG prevented me from heading that direction. For retirement, i may decide to convert some VGT or QQQM into FDVV as a safer play in my "no job income" years. Thanks again for the great perspective.
Hey Roy. I think that is the perfect way to look at it from a role perspective. Thanks for taking the time to watch the video and for leaving a comment. You've been a staple in the member community for a while now! Also, love the usage of the emoji there!
Thank you for this analysis. I have no clue why I started buying/found FDVV and have been struggling with buying SCHD over FDVV. I keep looking at the growth numbers and was wondering why not buy FDVV. Your analysis makes sense. I still see myself buying some FDVV, but will mix more SCHD in moving forward.
Hi Jeff, great video on dividends! I would love to see you make a video comparing TQQQ and QQQM. I know you’re not typically into leveraged ETFs, but it would be interesting to show some backtests and discuss whether consistently DCAing (Dollar-Cost Averaging) into them, even during tough times, could work wonders. I think it could be an intriguing topic, and I hope you’ll consider it. Either way, you’re the best, and I really enjoy all of your videos.
Hey Idan. Thanks for watching and for dropping a comment. I appreciate your support of the channel over the past many months. TQQQ is tricky to make a video on because backtests will not do justice. They will naturally grossly under or over exaggerate the results and future prospects. I don't like to mislead people with things like that. I think if someone wants to invest in TQQQ, that's fine. But a downturn can turn into literally -100%, just like upswings can turn into 1,000%. I'm looking at a 10 year chart. TQQQ is up 2,266.85%. QQQ is up 437.68% in the same timeframe. But it has only existed in a bull market. If we could rewind to the dot.com crash, let's just say... We can't hold negative money (: People can invest at their own risk, but making a video could end up being misleading to people trying to find long-term solutions.
Thank you for your comment, Jeff! So even though it successfully went through the COVID crash, the 2022 decline, and all the circuit breakers, do you still think it could go to zero and disappear? Just curious about your opinion. I totally understand and respect you not wanting to do a video about it!
Hey Ron. Definitely. I have that one one the list. I'm giving it time to grab a little more history before dropping a video on it. I want to compare it to the other quality international ETFs once I put it out there.
Yeah, your final thoughts seem spot on. I would take it slightly farther and say that Nvidia is the driving force between its big years. But, I have come up with this thought. Take a look at its expense ratio. It is similar to QQQM, not other leading dividend ETFs. Instead of thinking of FDVV as a dividend ETF that has some tech; you should think of it as a tech/growth ETF that has dividends. So, if you have a classic growth, market, dividend portfolio allocation, I would consider FDVV in the growth, not the dividend section for someone who wants more dividends than a standard growth ETF provides. In other words, I wouldn't replace SCHD with FDVV; I would replace QQQM for FDVV for less volitility and more dividends/dividend growth in retirement, while still having some (though obviously not as much as a QQQM but a good chance at beating the market) growth, and some tech exposure.
Hey Alex. I completely agree with this, well said! I was trying to tiptoe around it in the video without sounding like an FDVV hater. I didn't want to make it sound like the other dividend ETFs are *better*. You nailed it, if I picked up FDVV, it *would* go in my 'dividend' section of the portfolio, *but* I would adjust growth down as well. I would have to change target allocations for the portfolio sections to make it 'similar holdings' from a sector perspective.
Hey Henry. I think you're on to something here. If we busted out some nerdy spreadsheet stuff, I think FDVV would 'mostly' replace SCHD (assuming that is in your dividend target allocation section). But we would be smart to also shave a little QQQM instead of only replacing SCHD. This would ultimately keep the portfolio balanced (assuming it was balanced before the changes, lol).
I thought your comment here (the first one) was spot on. I do think FDVV is a dividend ETF, of course, *but* some growth would have to be shaved if we wanted the portfolio comp to stay similar overall. Couldn't just replace SCHD with FDVV. I mean, we could do whatever we wanted to, but then it would be a tangibly different makeup.
Love the deep dive into $FDVV. We own a small but growing holding of this as in a few years when retire we like it in our bucket 2 (Years 5-8 of retirement) paired with $SCHD & $JEPQ. The upside in the total return with a smaller dividend is why we like it in that bucket paired with those other 2 dividend dropping ETFs. Nothing is set in stone as we are not retired yet, but that is our current strategy. Our bucket 1 will be made up of cash related assets of 4 years to ensure we can withstand any major market volatility. The great thing is, there is no real right answer to strategies as its so personal to everyone's situation.
I love the strategy. It is good to stay open-minded and flexible too. Couldn't agree more with there being no one right way to do it. I always think to myself I'm going to do this, this, and that. If I zoom out 5 years it will probably look at least slightly different, and that is great. I wish you well on your early retirement journey.
Hey Mark. Thanks for watching and for the comment. I think FDVV is a solid fund that will likely perform well over the long run. If you're light on growth ETFs like VGT, SCHG, QQQM, SMH, XLK, etc then I think FDVV makes sense compared to something like SCHD. It depends on your portfolio composition. I don't think FDVV is a 'direct competitor' to the dividend growth ETFs. All are good long-term investments in my view.
Hey Jason. This is a GREAT point. I've wanted to make a video for a few months about how overblown ETF overlap is within a general portfolio section (split dollars). It really is my number 1 pet peeve in investing. For example, QQQM and SCHG have a lot of overlap. But, QQQM has 100% overlap with QQQM. SCHG has 100% overlap with SCHG. If someone can't decide which one to go with, then a 50/50 mix isn't bad as long as it is within the growth section. It will assure the growth performs in the middle of the results of the two. $40,000 in QQQM $40,000 in SCHG $20,000 in QQQM and $20,000 in SCHG has ZERO overlap concerns, and is technically more balanced within a portfolio section (assuming both are good ETFs). People are funny. Little bit of a rant here, but I don't know how many times I've found people to not understand the concept of overlap. PS: Of course *adding* $40k *is* dangerous overlap.
Yeah I agree on Schg and Qqqm…I invest in both and just consider them part of my growth segment of my portfolio. I also like that fdvv has nice tech exposure but also reits which have been lagging for awhile and are now rebounding with rate cuts happening (also seeing this with schd)
I'm here! This community got me drinking my coffee and joining the party on Sundays, lol. BTW: Later this week I'll be dropping my thoughts on the SCHD news!
Hey Ryan. I'm on it. I changed the way I do videos because of this one. I am dropping the schedule and backlog of pre-uploads. I realized it would have been nearly 3 weeks late even though I scripted it yesterday and will record tomorrow. For now on, I'll make and upload videos as I go. I'm still a little behind, this will probably be a busy upload week, with SCHD coming towards the end of the week. 'Normally' I will still be at 1 or 2 videos most week I think. But always at least 1!
Schwab ETFs have split on occasion over the years. The last one was in 2022 (I think SCHG was actually in there). I don't remember SCHD splitting in the past, but I could be wrong about that.
MGV at half the expense Ratio does very well… what would be your justification of pay twice the expense ratio for marginally maybe slightly better performance ? even HDV appears to do as well or very close at also approx half the expense Ratio of FDVV
Hey John. MGV is a solid value ETF. I'm a big advocate of keeping the expense ratio as low as possible. Anything under 50 basis points is good for me. Then I concentrate on methodology and total returns (along with many other key metrics). VOO, SCHD, FDVV, and DGRO (albeit almost a tie with DGRO) have all outperformed MGV over the past 5 years (looking in seeking alpha now). This does include the expense ratio. Granted, I think we will be having a reversion to the mean and value will do better in the coming years. MGV is a solid ETF, but I don't pick stuff because it has a slightly lower expense ratio if they holdings are tangibly different (based on the methodology). Expense ratio definitely is part of the review process of course, and I do weigh it in the considerations.
I came across this a few years back but just didn't know where it fits in my portfolio. Its not a stabilizer like schd/ vym. Its not a high dividend like jepi/jepq. Its an odd duck but again matches the market return 😂😂
Thanks for watching and for the comment. I'm with you on that! I think FDVV is a solid dividend ETF, but it doesn't have a home in my portfolio either. I like a defined role for each holding.
Hey Kuma. I think FDVV is a solid dividend ETF. I think it will do well in your Roth. Keep reinvesting those dividends and adding new contributions over the years. Roth IRAs are awesome.
Hi Jeff. Would pairing FDVV with FSELX a good one or too risky? Currently I have ZROX and wanting to add in these two to my Roth IRA at 33% each allocation each. I am 35 years old. I would appreciate your advice.
Hey Sonia. I think semi-conductor ETFs are okay if you know what you're getting into. They have done EXTREMELY well in the past 10 to 20 years. At times, they will plumet hard. This is when you will need to stay the course and not panic sell. FDVV is a solid dividend ETF to pair with something like FSELX and a cornerstone holding like VOO or VTI (not sure what ZROX is). Having a third of each makes it easy to manage the portfolio. When you buy with new contributions simply buy the one that has the least value. This means it is the most beat up, therefore giving you the biggest bang for your buck. Good luck!
@@JeffTeeples Hello again. Just one more question and need of advice. I am planning on doing the following move, do you think it is a good idea for both my Roth and Brokerage? I know everyone’s situation is different but would really appreciate your feedback ☺️ Roth (maxing out)- Either FDVV or SCHD, FZROX, FSELX Brokerage $1k/month- VYM, VOO, FTEC/SCHG
Hey Sonia. I think those are great mixes for your accounts. I personally would lean to the following: Roth: FDVV or SCHD (I would do SCHD because you are tech / growth heavy), FZROX, FSELX. Taxable: SCHD, VOO, FTEC/SCHG. This is 'basically' my mix (SCHD, VOO, VGT/QQQM). I think you will do amazingly well with this if you stay the course for many years. The market will eventually take a huge gut punch. Don't sell, buy more, and profit (:
Hey Ravi. We haven't 'really' seen a down market for a long time. I am impressed with FDVVs floor in the couple dips since inception. However, I think SCHD will perform better when we have a *real* reversion to the mean as far as growth to value. Time will tell.
Hey Ronney. Seriously, it is wild how much that stock has popped the Nvidia employees net worth. That dude is over 100 billion, which is hard to comprehend. But even the 'peon' employees are multiple millionaires. Many worth well north of 10 million off the company stock options. I think I read somewhere that they vest in 4 years. That would be nerve racking waiting to cash in (:
I hope to have this one out later this week. I'm going to get rid of the recording in advance system in favor of releasing videos as I have them ready. This SCHD news opened my eyes when I realized it would be a few weeks before my video dropped about it (queued up for a Sunday). For now one, I'll have no schedule, but will be more up-to-date (:
I mostly agree with this (definitely technically correct). But I will be releasing my thoughts soon (editing today) with my thoughts about the share split. I do think it is anywhere from neutral to slightly positive. I also do explain that it 'literally' has no impact (to your point).
2020 was the COVID crash, so whatever companies FDVV was holding then couldn't handle it. 2022 was the Tech crash due to the Fed raising the tax rate multiple times, so only SCHD, which doesn't have a high tech allocation, didn't have that bad a time.
I'm with you on this. And I think if we see a sustained flip that reverts the market back to value from growth (which we haven't 'really' seen in over a decade) we will see SCHD handle it a lot better. Both solid, and time will tell.
I'm with you on that. It has had a solid floor in the first 8 years, but it has also been a bull run during that time. I am curious to see how well it does when we have a legit crash. Everything will go down, of course, but at that point I would rather be in the value and balance sheet tilted SCHD for my 'dividend section' of my portfolio (as growth falls, and I buy more).
I have to agree with Jeff...no sense in holding FDVV when most of us already have a tech heavy ETF like XLK or VGT. You are better off going with an SCHD/XLK or VGT combo.
Hey Jeff. That is exactly where I land on this one. FDVV can be a great holding, but it depends on the current composition. SCHD really is the perfect dividend/value ETF to go with VGT, QQQM, or SCHG because it has very little weighted overlap. I don't think it is a *must have* for all portfolios, but it does objectively play nicely with the top growth ETFs.
Haha, you put me in a tough spot here (: I love me some SCHD, but Seeking Alpha has been so valuable for my overall investing career. I think for higher balances, it's worth it. For people just getting started, go with the SCHD! If you're somewhere in the middle, I guess it is a gut call.
Hey Jeremy. That is the problem I have with it as well. It doesn't have a clear niche. I'm not a huge fan of the methodology it uses. Dividend yield isn't an overly impactful winning factor, and it puts a lot of weight on it. SCHD having equal weight on yield, dividend growth, return on equity, and free cash flow to debt makes it more consistent for 'what it does well' in my opinion. Then growth ETFs will cover the other side for me. Thanks for watching. SCHD video coming later this week!
Thanks!
Thanks Brianna! I swear you pay me more than UA-cam (: I appreciate your generosity so much. It is never required of course, but always appreciated.
Just started investing in FDVV, technology heavy and technology is the way forward heading into the future. 👍 good video.
Thanks for the kind words and the comment. FDVV has had a very impressive total return history so far. I wish you well with it. I think it is a solid dividend ETF, and I have my eyes on it (:
I own both FDVV and SCHD, about 80% SCHD vs 20 % FDVV. I like this balance/risk (tech stocks)
They are both great ETFs to own. Thank you for watching and for leaving a comment.
keep pumping out those financial informational videos Jeff!!!!
Will do Kevin. More to come this week. Going to release videos as I have them ready to keep up with the times a little more (: They will be just a nerdy, but not 2 or 3 weeks late like usual.
Keep up the good work Teeps!
Thank you for the kind words, will do! Thanks for being a long-time channel member! That 6M badge is looking real nice.
My favorite ETF in my brokerage account. 👍💰
Hey Jed. It is a very solid performing ETF. Hard to come up with anything bad to say about it. I think it will do well moving forward (long-term) as well.
ThanX Jeff.... Great stuff..... I have been watching this bad boy for awhile..... but still working on my commitment to SCHD and DGRO and JEPQ percentages.... Your breakdowns are excellent dissecting everything well.... Just look at the numbers - well, you are an accountant..... Love your work... Keep ups he great work and I look forward to your next one.... whenever it drops - I will be there..... Stay safe.....
Hey Lance. One thing you can always count on from me is the nerdy analytics. You can take Teeps out of accounting, but you can't take accounting out of Teeps! Thanks for your extra level of support for the channel. It's been fun.
I think I'm going to have a video drop on Wednesday and Friday this week. This will not be the normal, but getting out the backlog to get a bit more up to date.
Thanks Jeff! FDVV has been a good performer for me, but I agree with your tech overlap comments.
Hey Kent. FDVV has been great! It is a total returns monster since the beginning. I think it is a solid ETF for sure.
Great video!
I agree on your final thoughts.
Hey Tom. Thanks for watching and for the feedback. I think FDVV is solid, so I didn't want to come off sounding like a hater. But it is weird to compare it only to something like SCHD or DGRO. It is more akin to a hybrid fund, and I personally would rather have SCHD + *insert growth* rather than something like FDVV. Doesn't make it bad at all of course. I'm just a guy (:
I almost bought FDVV instead of SCHD about 2 years ago. The overlap with VGT, QQQM, & SCHG prevented me from heading that direction. For retirement, i may decide to convert some VGT or QQQM into FDVV as a safer play in my "no job income" years. Thanks again for the great perspective.
Hey Roy. I think that is the perfect way to look at it from a role perspective. Thanks for taking the time to watch the video and for leaving a comment. You've been a staple in the member community for a while now! Also, love the usage of the emoji there!
I keep seeing more investors talk about FDVV, not too shabby of an ETF, but not necessarily my first pick!
Hey Ari. I'm right there with you. Thanks for watching and dropping a comment. Hope everything is well.
Thank you for this analysis. I have no clue why I started buying/found FDVV and have been struggling with buying SCHD over FDVV. I keep looking at the growth numbers and was wondering why not buy FDVV. Your analysis makes sense. I still see myself buying some FDVV, but will mix more SCHD in moving forward.
Thank you for the kind words. I think you are making a great move as both FDVV and SCHD are rock solid.
Hi Jeff, great video on dividends! I would love to see you make a video comparing TQQQ and QQQM. I know you’re not typically into leveraged ETFs, but it would be interesting to show some backtests and discuss whether consistently DCAing (Dollar-Cost Averaging) into them, even during tough times, could work wonders. I think it could be an intriguing topic, and I hope you’ll consider it. Either way, you’re the best, and I really enjoy all of your videos.
Hey Idan. Thanks for watching and for dropping a comment. I appreciate your support of the channel over the past many months.
TQQQ is tricky to make a video on because backtests will not do justice. They will naturally grossly under or over exaggerate the results and future prospects. I don't like to mislead people with things like that. I think if someone wants to invest in TQQQ, that's fine. But a downturn can turn into literally -100%, just like upswings can turn into 1,000%.
I'm looking at a 10 year chart. TQQQ is up 2,266.85%. QQQ is up 437.68% in the same timeframe. But it has only existed in a bull market. If we could rewind to the dot.com crash, let's just say... We can't hold negative money (:
People can invest at their own risk, but making a video could end up being misleading to people trying to find long-term solutions.
Thank you for your comment, Jeff! So even though it successfully went through the COVID crash, the 2022 decline, and all the circuit breakers, do you still think it could go to zero and disappear? Just curious about your opinion. I totally understand and respect you not wanting to do a video about it!
I don't think it will go to zero (or it is very unlikely anyway), but it could lose a *lot* of money compared to unleveraged ETFs.
Thank you Jeff. Good info.
If you have the time would you review SCHY?
Hey Ron. Definitely. I have that one one the list. I'm giving it time to grab a little more history before dropping a video on it. I want to compare it to the other quality international ETFs once I put it out there.
Yeah, your final thoughts seem spot on. I would take it slightly farther and say that Nvidia is the driving force between its big years. But, I have come up with this thought. Take a look at its expense ratio. It is similar to QQQM, not other leading dividend ETFs. Instead of thinking of FDVV as a dividend ETF that has some tech; you should think of it as a tech/growth ETF that has dividends. So, if you have a classic growth, market, dividend portfolio allocation, I would consider FDVV in the growth, not the dividend section for someone who wants more dividends than a standard growth ETF provides. In other words, I wouldn't replace SCHD with FDVV; I would replace QQQM for FDVV for less volitility and more dividends/dividend growth in retirement, while still having some (though obviously not as much as a QQQM but a good chance at beating the market) growth, and some tech exposure.
Do you think FDVV could replace both QQQM and SCHD? I currently only own FSKAX and was thinking of adding FDVV as my growth and dividend etf.
@@HenryLopez-uw6hy have no idea. I am just a random guy on youtube with an opinion. Do your own research. Maybe.
Hey Alex. I completely agree with this, well said! I was trying to tiptoe around it in the video without sounding like an FDVV hater. I didn't want to make it sound like the other dividend ETFs are *better*. You nailed it, if I picked up FDVV, it *would* go in my 'dividend' section of the portfolio, *but* I would adjust growth down as well. I would have to change target allocations for the portfolio sections to make it 'similar holdings' from a sector perspective.
Hey Henry. I think you're on to something here. If we busted out some nerdy spreadsheet stuff, I think FDVV would 'mostly' replace SCHD (assuming that is in your dividend target allocation section). But we would be smart to also shave a little QQQM instead of only replacing SCHD. This would ultimately keep the portfolio balanced (assuming it was balanced before the changes, lol).
I thought your comment here (the first one) was spot on. I do think FDVV is a dividend ETF, of course, *but* some growth would have to be shaved if we wanted the portfolio comp to stay similar overall. Couldn't just replace SCHD with FDVV. I mean, we could do whatever we wanted to, but then it would be a tangibly different makeup.
Love the deep dive into $FDVV. We own a small but growing holding of this as in a few years when retire we like it in our bucket 2 (Years 5-8 of retirement) paired with $SCHD & $JEPQ. The upside in the total return with a smaller dividend is why we like it in that bucket paired with those other 2 dividend dropping ETFs. Nothing is set in stone as we are not retired yet, but that is our current strategy. Our bucket 1 will be made up of cash related assets of 4 years to ensure we can withstand any major market volatility. The great thing is, there is no real right answer to strategies as its so personal to everyone's situation.
I love the strategy. It is good to stay open-minded and flexible too. Couldn't agree more with there being no one right way to do it. I always think to myself I'm going to do this, this, and that. If I zoom out 5 years it will probably look at least slightly different, and that is great. I wish you well on your early retirement journey.
This is my favorite...been on fdvv about a month but it's so much more attractive to me than schd or that type
Hey Mark. Thanks for watching and for the comment. I think FDVV is a solid fund that will likely perform well over the long run. If you're light on growth ETFs like VGT, SCHG, QQQM, SMH, XLK, etc then I think FDVV makes sense compared to something like SCHD. It depends on your portfolio composition. I don't think FDVV is a 'direct competitor' to the dividend growth ETFs. All are good long-term investments in my view.
Just bought today
I like fdvv…I think it compliments schd with little overlap
Hey Jason. This is a GREAT point. I've wanted to make a video for a few months about how overblown ETF overlap is within a general portfolio section (split dollars).
It really is my number 1 pet peeve in investing.
For example, QQQM and SCHG have a lot of overlap. But, QQQM has 100% overlap with QQQM. SCHG has 100% overlap with SCHG. If someone can't decide which one to go with, then a 50/50 mix isn't bad as long as it is within the growth section. It will assure the growth performs in the middle of the results of the two.
$40,000 in QQQM
$40,000 in SCHG
$20,000 in QQQM and $20,000 in SCHG has ZERO overlap concerns, and is technically more balanced within a portfolio section (assuming both are good ETFs).
People are funny. Little bit of a rant here, but I don't know how many times I've found people to not understand the concept of overlap.
PS: Of course *adding* $40k *is* dangerous overlap.
Yeah I agree on Schg and Qqqm…I invest in both and just consider them part of my growth segment of my portfolio. I also like that fdvv has nice tech exposure but also reits which have been lagging for awhile and are now rebounding with rate cuts happening (also seeing this with schd)
@@JeffTeeples yes I
Agree!
Thanks Jeff
Oh course. Thank you for taking the time to watch the video and for dropping the positive comment.
Sunday Morning is Teeples Time! 😁
I'm here! This community got me drinking my coffee and joining the party on Sundays, lol.
BTW: Later this week I'll be dropping my thoughts on the SCHD news!
Great as always. I was waiting to see your video on Schwabb ETF split.
Hey Ryan. I'm on it. I changed the way I do videos because of this one. I am dropping the schedule and backlog of pre-uploads. I realized it would have been nearly 3 weeks late even though I scripted it yesterday and will record tomorrow.
For now on, I'll make and upload videos as I go. I'm still a little behind, this will probably be a busy upload week, with SCHD coming towards the end of the week. 'Normally' I will still be at 1 or 2 videos most week I think. But always at least 1!
@@JeffTeeples keep up the good work bro. I watch it every Sunday when travelling.... I need a good one for my next Sun flight.
@@JeffTeeples has schwab etfs ever split before?
Schwab ETFs have split on occasion over the years. The last one was in 2022 (I think SCHG was actually in there). I don't remember SCHD splitting in the past, but I could be wrong about that.
@@JeffTeeples It is going to be the first time for SCHD (SCHG: Mar. 11, 2022 Ratio:2:1)
MGV at half the expense Ratio does very well… what would be your justification of pay twice the expense ratio for marginally maybe slightly better performance ? even HDV appears to do as well or very close at also approx half the expense Ratio of FDVV
Hey John. MGV is a solid value ETF. I'm a big advocate of keeping the expense ratio as low as possible. Anything under 50 basis points is good for me. Then I concentrate on methodology and total returns (along with many other key metrics).
VOO, SCHD, FDVV, and DGRO (albeit almost a tie with DGRO) have all outperformed MGV over the past 5 years (looking in seeking alpha now). This does include the expense ratio.
Granted, I think we will be having a reversion to the mean and value will do better in the coming years. MGV is a solid ETF, but I don't pick stuff because it has a slightly lower expense ratio if they holdings are tangibly different (based on the methodology). Expense ratio definitely is part of the review process of course, and I do weigh it in the considerations.
I am keeping my DIVB with an excellent expense ratio of 0.05 and so far good performance.
Hey Felix. Nothing wrong with that. DIVB has quietly been solid since inception. I am keeping my eyes on it as well.
I came across this a few years back but just didn't know where it fits in my portfolio. Its not a stabilizer like schd/ vym. Its not a high dividend like jepi/jepq. Its an odd duck but again matches the market return 😂😂
Thanks for watching and for the comment. I'm with you on that! I think FDVV is a solid dividend ETF, but it doesn't have a home in my portfolio either. I like a defined role for each holding.
im buying this next year in my Roth IRA
Hey Kuma. I think FDVV is a solid dividend ETF. I think it will do well in your Roth. Keep reinvesting those dividends and adding new contributions over the years. Roth IRAs are awesome.
Hi Jeff. Would pairing FDVV with FSELX a good one or too risky? Currently I have ZROX and wanting to add in these two to my Roth IRA at 33% each allocation each. I am 35 years old. I would appreciate your advice.
Hey Sonia. I think semi-conductor ETFs are okay if you know what you're getting into. They have done EXTREMELY well in the past 10 to 20 years. At times, they will plumet hard. This is when you will need to stay the course and not panic sell. FDVV is a solid dividend ETF to pair with something like FSELX and a cornerstone holding like VOO or VTI (not sure what ZROX is).
Having a third of each makes it easy to manage the portfolio. When you buy with new contributions simply buy the one that has the least value. This means it is the most beat up, therefore giving you the biggest bang for your buck.
Good luck!
@ So sorry, I meant to write fidelity’s FZROX total market index fund. Thank you so much for your response! It is a really good one. ☝️
@@JeffTeeples Hello again. Just one more question and need of advice. I am planning on doing the following move, do you think it is a good idea for both my Roth and Brokerage? I know everyone’s situation is different but would really appreciate your feedback ☺️
Roth (maxing out)- Either FDVV or SCHD, FZROX, FSELX
Brokerage $1k/month- VYM, VOO, FTEC/SCHG
Hey Sonia. I think those are great mixes for your accounts. I personally would lean to the following:
Roth: FDVV or SCHD (I would do SCHD because you are tech / growth heavy), FZROX, FSELX.
Taxable: SCHD, VOO, FTEC/SCHG. This is 'basically' my mix (SCHD, VOO, VGT/QQQM).
I think you will do amazingly well with this if you stay the course for many years. The market will eventually take a huge gut punch. Don't sell, buy more, and profit (:
@@JeffTeeples awesome! Sounds great! Thank you for always having great responses. This shows how invested you are with your audience :)
Why FDVV perform better in down market even when it has highest technology exposure?
Hey Ravi. We haven't 'really' seen a down market for a long time. I am impressed with FDVVs floor in the couple dips since inception. However, I think SCHD will perform better when we have a *real* reversion to the mean as far as growth to value. Time will tell.
Jeff why is envidia’s CEO almost as rich as Warren?
Hey Ronney. Seriously, it is wild how much that stock has popped the Nvidia employees net worth. That dude is over 100 billion, which is hard to comprehend. But even the 'peon' employees are multiple millionaires. Many worth well north of 10 million off the company stock options. I think I read somewhere that they vest in 4 years. That would be nerve racking waiting to cash in (:
We need a video about the schd split 😊 wondering what's your thoughts 🧐
I hope to have this one out later this week. I'm going to get rid of the recording in advance system in favor of releasing videos as I have them ready. This SCHD news opened my eyes when I realized it would be a few weeks before my video dropped about it (queued up for a Sunday).
For now one, I'll have no schedule, but will be more up-to-date (:
@@JeffTeeples yep I read your posts too, wishing you success!
Why? It's straightforward and will have no impact whatsoever unless you trade options.
I mostly agree with this (definitely technically correct). But I will be releasing my thoughts soon (editing today) with my thoughts about the share split. I do think it is anywhere from neutral to slightly positive.
I also do explain that it 'literally' has no impact (to your point).
2020 was the COVID crash, so whatever companies FDVV was holding then couldn't handle it.
2022 was the Tech crash due to the Fed raising the tax rate multiple times, so only SCHD, which doesn't have a high tech allocation, didn't have that bad a time.
I'm with you on this. And I think if we see a sustained flip that reverts the market back to value from growth (which we haven't 'really' seen in over a decade) we will see SCHD handle it a lot better. Both solid, and time will tell.
Which that much tech I would be concerned about the max drawdown. One of the reasons folks are drawn to dividend ETFs is for downside protection
I'm with you on that. It has had a solid floor in the first 8 years, but it has also been a bull run during that time. I am curious to see how well it does when we have a legit crash. Everything will go down, of course, but at that point I would rather be in the value and balance sheet tilted SCHD for my 'dividend section' of my portfolio (as growth falls, and I buy more).
I have to agree with Jeff...no sense in holding FDVV when most of us already have a tech heavy ETF like XLK or VGT. You are better off going with an SCHD/XLK or VGT combo.
Hey Jeff. That is exactly where I land on this one. FDVV can be a great holding, but it depends on the current composition. SCHD really is the perfect dividend/value ETF to go with VGT, QQQM, or SCHG because it has very little weighted overlap. I don't think it is a *must have* for all portfolios, but it does objectively play nicely with the top growth ETFs.
Tech heavy, so it's done better.
Hey Jeff. Agree with this. It will be interesting to see what it does moving forward.
Seeking alpha is definitely not worth 10 shares of schd lmao (after octobers split)
Haha, you put me in a tough spot here (: I love me some SCHD, but Seeking Alpha has been so valuable for my overall investing career. I think for higher balances, it's worth it. For people just getting started, go with the SCHD! If you're somewhere in the middle, I guess it is a gut call.
I'm not sold on it. I doesn't fit my portfolio in any meaningful way.
Hey Jeremy. That is the problem I have with it as well. It doesn't have a clear niche. I'm not a huge fan of the methodology it uses. Dividend yield isn't an overly impactful winning factor, and it puts a lot of weight on it. SCHD having equal weight on yield, dividend growth, return on equity, and free cash flow to debt makes it more consistent for 'what it does well' in my opinion. Then growth ETFs will cover the other side for me.
Thanks for watching. SCHD video coming later this week!