The reason why SCHD is so great is because the overlap is very low when paired up ETF's like VOO, VGT, etc. I personally use it to balance out my VOO and FTEC positions as a defensive and bond replacement play.
Thanks for watching and for the comment. I could not agree more, you nailed it. SCHD has very unique holdings compared to the 'typical' dividend ETF. Very little overlap with the popular growth ETFs and the market.
SCHD (and SCHY for international) and DIVO (and IDVO for international) make up my back bone. I also have SPYI with an 11% tax free income rate (no taxes on the income AND less risk than JEPQ). I then have a splattering of individual REITs and BDCs as satellite positions. Great video 👍
Thanks for showing the SCHD vs 5% HYSA! So eye opening to see how the dividend growth rate of SCHD crushes the HYSA, plus the price appreciation! Now that a rate cut is imminent in the near future, schd is definitely the way to go for me. Dividend growth rate is key and you reap the high benefits especially at year 10 😮 Investing is a long term game!! Keep up the good work!
Thanks for watching and for the comment. I like DGRW quite a bit! I consider it more of a 'core' holding like VOO or VTI. The key metrics align more with that cornerstone or foundational makeup. I will be sure to include it when I rate my favorite cornerstone holdings. Actually, I need to do that, I don't think I've ever made a video like that. Some balanced funds get the short end of the stick because they are hybrids instead of 'dividends', 'value', or 'growth' specific.
Hey Jeff. As always, great name. +1 to your parents. I like that combo for cash-flow and long-term growth. Stay the course with that and you'll like be happy in many years from now.
I purchased COWZ in April and I'm still under water. Was 7% down but now only a little over 1%. But videos like this make me think that I should stick with it.
Hey John. You're right that the expense ratio is included in the total return of an ETF. Therefore it doesn't matter in hindsight to your point. They do matter for purchasing decisions and looking forward. They are the most accurate 'predictor' of the future results of 'like funds'. No single person or system can predict the future. We would all be rich if we could. But a fund starting at negative 0.50% returns with a 50 point expense ratio is a 7 figure (in most cases) disadvantage over an investing career. I know that sounds exaggerated, but compound math is crazy (I have a video or two breaking it down with real numbers on a real calculator online (that I replicated in Excel for flexibility of the scenarios on the fly). Expense ratios are awful variables to start with before moving forward. They don't matter, retroactively, when we have all the data.
I think what he meant was that it is included in the total returns (which considers dividends, price return, and fees). You're right that it isn't accounted for, specifically, in the yield. But the net impact is in the 'total returns'. It is statistically the most important variable for predicting future results. Spoiler alert, they all suck and it is very hard, haha. But there is a lot of research about why it is the most impactful consideration for 'like funds'.
Hi Jeff, I am new to your channel. I am focused on growth, Vgt, SMH and some stocks. But I am trying to learn more about dividend investing for retirement. I own a small amount of VIG and Schd. I know way more about tech investing than I do dividends. I'm hoping to learn a lot from your channel. Thanks Chris
Hey Chris. Thank you for taking the time to watch the videos and for dropping a comment. It is great to have you here! I have a dividend growth vs dividend yield video coming out soon that I think will help quite a bit.
I know they are still new as they are still not a year old but would love to see you put GPIQ and GPIX on this list for comparison's sake. Both are issued by Goldman Sachs and have an expense ratio of 0.29%. YTD they have been outperforming their JP Morgan counterparts in JEPQ and JEPI.
I think it would be interesting if you compared these etfs on how much they dropped from the highs and lows during the 2 times the market got hit with covid 19. The 2020 drop and the drop that came with inflation with interest rates going up. I think SCHD would hold up better with less of a drop on the down turn than most of these etfs. If this is true it is just another great reason to own SCHD.
Hey Michael. This is a great video idea. I will often times get into a bunch of key metrics without diving deeper into one aspect. Assessing the floors during bad times would be a good one!
Very nice Richard. That is an awesome way to go about the different roles of the portfolio. I don't think you can go wrong with that mix over a long time duration.
Love the ETF Table comparison breakdowns, makes it easy to compare numbers against each other. I've added 2.5% position with DIVO as I love the extra yield and the performance it had shown recently and it's low over lap with JEPQ & SCHD. I had to trim down our JEPQ in half and used the funds to get some SPYI and QQQI, they've been great so far in performance and the extra monthly yields I plan to reinvest half to create a position in COWZ for the long term actively-managed strategy.
Thanks for taking the time to watch the video and for leaving a great comment. I like the strategy, and I think it is cool you play to reinvest some of the juicy monthly yields into COWZ. I love reinvesting dividends!
Good stuff, to be sure. I needed some SCHD reminders of why I have it, but should allocate more additions. I agree and like the lack of overlap with my other growth ETF's.
Thanks for watching Karl. I appreciate the comment. The community comments help keep me on course as well. It is nice to know we are not making bad long-term decisions (well, or that we are not going down alone, lol).
My choices are SCHD -SPLG - QQQM - JEPQ - DGRW - COWZ in that order, highest to lowest percentage wise with some other smaller dog and cats like MAIN and O
I like JEPQ and JEPI better in the early stages because of the difference in expense ratios. However, I am watching both of those ETFs with an open-mind. Specifically JEPQ and QQQI (I like the Nasdaq-100 for this style of investment). Year-to-date, JEPQ is ahead on total return by 2.87%. But that is a very small sample size thus far.
Thanks for the kind words as always. Hope the portfolio is doing well (I'm sure it is). I have been watching SPYI and especially QQQI as options myself. I do like JEPQ better so far, but, I like to stay open-minded and to continue to research. Glad the holdings are working well so far!
Dividends are undervalued Some months I only can put in $100 to $ 300 a month but with those dividends coming in every month I use that cash to buy more growth Other wise wouldn’t have all that extra cash to buy at loss and highs On August 5th I had $700 I could put in. But I’ve been saving my dividends putting it in SGov for a few months I unloaded an extra $1230 all from dividend funds !!! I otherwise wouldn’t have on the biggest dip of the year
I love dividend stocks and ETFs. Granted, I love cornerstone holdings like VOO and VTI, and growth ETFs as well. I do think many investors undervalue the net value of dividends. We hear a lot about the cons of dividends, but so many don't 'truly' understand the power of dividend growth. I have a video coming out next Sunday about it. I like the entire investing world (:
Great video, Jeff! Lots to ponder... FDVV and COWZ (at 6.9%, nice 😂) are pretty nice looking options. As I roll out of growth in the future, they will be candidates in my retirement dividend strategy.
Hey Nick. I think those are both great options for retirement. Pretty good 1-2 punch with the high value and cash flow of COWZ combined with the all-around dividend stats and total returns of FDVV. I'm going to look more into DIVB as well. I have been blown away so far by what I've seen. Planning a deep dive this week. I'll very likely make a video about it. Also want to touch more on AVUV as well in the near future.
Hello Jeff! Another great review, thank you for this comparative analysis of the ETF's. What I noticed is that you like JEPQ as a dividends producing vehicle, but at the same time you almost never mention SPYI, and I know that expense ratio is highter for this covered call ETF, but does it really make a big difference until fund can pay higher dividends and at the same time has some growth from appreciation perspective? And from diversification point, having JEPQ as the only high dividend-cow with its exposre to NASDAQ, having SCHD with exposre to Doe Jones, but not having high yeild solution with exposure to SNP500, what is the secret behind this ? :) Of course JEPI tracks SNP500, but my understanding is that it can be riskier to have a significant part of investments in shares of the same issuer (JP Morgran). And also if it's going about the high yeild stuff, how you feel about BDC's, that can also have a potential for dividends and appreciation growth? Sorry for this batch of questions, It's just interesting to know your opinion. Thank you!
These are really great questions. I'm going to tackle this a bit out of order because some will naturally answer themselves. VOO is our largest single holding at around $400,000. I love, and have a lot of the S&P 500. I do not have a ton of QQQM for Nasdaq-100 exposure (~$100,000) by comparison. That is partially the reason for no JEPI or SPYI. For producing passive income, I prefer the Nasdaq-100 index to the S&P 500 when dealing with options. It has a higher volatility than the S&P 500, which increases the premium income (compare JEPI to JEPQ, for example). For 'that' part of my portfolio, I do not care as much about portfolio value. I want the most cash-flow possible to pay the bills. For long-term cash flow and investing in general, I strongly prefer SCHD to all of the covered call ETFs. These dividends start at a low yield but compound like crazy. SCHD is my second largest holding behind VOO. VOO will beat JEPI and SPYI in total returns long-term. It is mostly how the funds ceilings are capped by the option strategy. Assuming markets go up, long-term, VOO will win just due to how the math plays out. Same with QQQM against QQQI and JEPQ. Here are the total returns (dividends included) since SPYI started getting data: VOO: 45.73% SPYI: 31.36% JEPI: 24.50 QQQ: 61.70% JEPQ: 45.17% I prefer QQQM + VGT as my long-term growth. SCHD as my long-term value. VOO as my long-term cornerstone. And JEPQ as my give me cash now so wife can retire early in a few years. I rank JEPQ as last place if we are talking 'long-term investments'. It is a glorified HYSA for me that I don't necessarily care about the value of at any one time. So the high VIX is great because it produces more income than something like JEPI.
I own several of the etf's on your spread sheet. Two more that I would recommend are PBDC, which is a tremendous professionally managed business development etf, and PFFA, which is a U.S. preferred stock etf. Both yield between 9-10%.
Great video, thanks! I just recently saw a video on FDVV. It looks like a blend between growth and dividends. It has Nvidia and PG, for example. Some might want two or more ETFs but I guess if you want one ETF with both growth and reasonable amount of dividends, it is your product. If COWZ had a lower expense ratio, I'd be in. I can handle 0.49 short term but as a long term investment, with all the unknowns, it just seems like the wrong choice for me to make.
Hey Alex. I am with you on the .49% expense ratio with COWZ. The ETF is so solid, but that is a bit steep. I am painfully aware of how much money 49 basis points compounds to over many decades. It's deceptive. I'm still keeping my eye on it. FDVV is interesting, I will continue to watch it moving forward. Very solid lately, but to your point, I like having SCHD & growth ETFs instead of a hybrid. It is over 25% in tech, and I would rather have that 'mix' with SCHD & growth friends.
Thanks for the kind words. I appreciate it. I have added GPIQ to the watch list. It is new, lower expense ratio, same index, and quite interesting. Competition is a great thing.
Hey Sean. Lol, holy COWZ is right. I have been blown away by the key metrics around this one since I started following it. I'm personally taking the watch and see approach at the moment. It may be a nice portfolio staple in the future. I'm the guy that doesn't mind being late to the party, but I want to make sure the party is legit.
Hey Leonard. I think that is a great dividend combo. SPYI has been impressive so far! Better total returns than JEPI since inception. It is one that I'll be watching. It does break my ER rule though (50 bps or lower).
We’ve been big proponents on having a $FDVV & $SCHD mix. They only have a 15% crossover and when one is down, the other is up. We’ve been adding positions in both. In retirement we like them instead of bonds for years 6-8 in bucket #2 in retirement.
I love that strategy. You're exactly right, FDVV is deceptively high in tech (just over 25%). It makes it an awesome counterbalance to SCHD, but without being exposed to the same risks as growth ETFs. Stay the course and enjoy retirement (:
Nice video, Jeff. I just jumped into the investing game about three weeks ago with 9k. I started with SCHD, DGRO and QQQ for my foundation. Also bought some AIQ, SHLD and SMH. My stocks are NVDA, SOFI, PLTR. Would love to hear your thoughts/advice on my picks. Thanks
Hey Chris. I think you're off to a great start with that foundation. I love SCHD, DGRO, and QQQ! You may want to consider QQQM if you are a buy and hold investor. It is the same as QQQ but with a lower expense ratio. But not a huge deal either way. I prefer VGT for a more broad 'sector play' as a long-time hold. AI and any other tech movements are included because it is a broad tech sector ETF. That way you don't have to keep up with the fads over time. The next thing always comes, but tech seems to be a staple moving forward.
Hello Jeff, first of all thank you for the detailed answers, really appreciate that! What is your favourite strategy of adding SCHD to the portfolio? I mean, for instance now SCHD is all times high, but adepts of DCA will probably buy shares systematically ignoring the current price. Or, if, for example, SCHD producing enough cash to buy at least one additional share, then it's better to ignore the price, and to buy it even all times high, just to increase the snowball effect? (basically it's more about approach in general, not only about SCHD :) if stock produces enough cash to buy more shares is it a good idea to wait for market to go down?) Thank you!!
Thanks for watching and for leaving a comment. This is a great question. I use the approach of dollar cost averaging money into the market (as much as possible at all times) into my target allocations. This allows me to buy the relative dip without thinking about it. A simple example. Say you have 50% SCHD and 50% VGT as your portfolio target allocations (goal weights for both). When you go to buy more, simply purchase the one that has fallen below it's allocation. This means it is comparatively lower than the other ETF (even if both at all time highs). This is the strategy I use for my portfolio. If an ETF has a goal of 10%, and it is 9.4%, it is a buy rating. If it is 10.6%, it is a hold (it has outperformed the other ETFs on a comparative basis). For me, I've only purchased SCHD in the past couple years because VGT and QQQM have performed so much better and are 'overweight' compared to SCHD. When the market crashes and growth dips, I'll be buying the others.
Nice vid. Hey you should check out divb. Its an dividend growth etf that focuses on companies that buyback shares at a massive rate along with syld and pkw. Syld and pkw are a lil better, they have way more aum but the expense ratios are higher. Divb expense is .05%
Interesting! DIVB has incredible stats (total returns, dividend growth rate, and solid yield) and feels very underfunded. I'll add this one to the list for sure. Thanks for watching and for giving a great suggestion.
@JeffTeeples The aum is minimal. No one knows about it, which is understandable. Pretty decent so far. My only fear is that it ends up becoming a value fund instead of dividend growth fund
It would be awesome to also have a video on different options for cornerstone/ broad market holdings, as you pointed out in one of the comments. Thanks Jeff for all the informative and fun content! And regarding dividend ETFs, what do you think about SCHY? I imagine it would be an interesting addition to the comparison mix here, given that it is Schwab's international counterpart to SCHD, and you have already included VYMI in the comparison.
Hey Amir. I think you're right in that a cornerstone video would be good. I always skip over that and assume VOO or VTI, but, there are so many great options! You read my mind, I am adding SCHY for the next one to give VYMI some competition.
Hello Jeff Teeples, great video as always. I'm curious, from my understanding, if I were to have a huge portfolio value, such as 5 million dollars or so hypothetically, then SCHD would be the best choice for that situation/scenario right?
Hey Tyson. The 'best' will depend on your goals and risk tolerance in general. But I would say if your goal is to have consistent *and* growing dividends over the years to outpace inflation then SCHD is a great ETF. It has never paid less per share than the year before, and has destroyed inflation to keep your purchasing power high. At 5 million, who cares if the portfolio dropped by 20% as long as the cash flow grows year after year. Over time, the price will also go up as well.
Thank you for the kind words. I appreciate the support of the channel. I don't know a lot about MLPs to be honest (beyond the basics). I've never dove deeper into the pros and cons. The 10 year total return of that fund shows 13.07%. This is compared to 539% of VGT, 236% of VOO, and 195.6% for SCHD. I know those are long-term investments with other advantages, but without a deep education on the topic I wouldn't put money into it personally. Full discloser with this one is that I'm far from knowledgeable in this specific area.
Jeff - FDL is very good dividend etf that has outperformed S&P for last 3 years, but got beat pretty soundly over last 10 years. It has 4.1% yield and grows dividend by 8% per year. SCHY is International version of SCHD and starts at 4.75% yield and has grown that, but its very new. P/E is 13 and return on equity is 20%. My concern with foreign dividend paying stocks is that the companies don't face the scrutiny that US stocks do when/if they cut their dividend.
Hey Tom. I appreciate you watching the video and leaving a comment. Great picks, I will add them both to the list for my future dividend videos. Thanks!
There's no such thing as "Risk off", because there is risk involved with every single financial decision that is made. Boomer is learning this lesson the hard way. He sold SCHD in the mid to low $70s to get his 3.5 % to 5% yield. Now he's either lost, or is going to lose, all of that yield and more buying back SCHD in the low to mid $80s.
Hey Chris. Exactly! People will chase yield in the moment because it always feels good to get the boost. It's like me now with JEPQ, haha. But for real, when the rates drop for HYSA it is already 'too late' to look to SCHD because 3.8% (or whatever it is then) is higher than the money markets or HYSA. I keep cash, but I never view it as a 'long-term way to make cash flow' compared to SCHD. It is my target allocation available money to buy market fluctuations. I have never, and will never, 'choose' HYSA or MM over SCHD. It is a costly decisions long-term (and often times short term as well to your point).
I currently own a combo of SCHD/DGRO, but I've been researching and keeping an eye on FDVV, which blows all the others away. BUT, FDVV's top 3 holdings are also NVDA, APPL, and MSFT, so it looks very strong in a bull market, but unsure if it will buoy portfolios in a down turn like SCHD does. Thoughts?
keep pumping out those financial informational videos Jeff!!!! my current go to ETF is QYLD.... not the biggest payer.... but my cost basis is $17 and add about 50 shares to my portfolio a month....
Thanks for the support Kevin. Will do! The thing I like about QYLD and JEPQ is that reinvesting will take advantage when the price dips naturally. I love SCHD, and it will be a big part of my retirement, but JEPQ has grown on me for this reason. My average cost is $49.40. If the price dips to $43, I'll be swooping up more shares than before. If it goes to $55 then I know that it has performed well in addition to the cash flow that is always there. I think I'll have a mix of a few things when I *NEED* *NEED* the cash flow in full retirement.
The dividend growth rate of the covered call ETFs will be all over the map in general. Down 15%, up 30%, etc. This is because the premium income having dependence on the market volatility. SCHD or DGRO is cash-flowing directly from the underlying holdings, which 'tend to' increase their dividends every year for X amount of years. JEPQ and QYLD will be more dividends, but all over the map. They are more like HYSA that depend on the Federal Funds rate. We can't 'assume growth' for our savings accounts. It is directly at the mercy of the rate. Only fed fund rate = market volatility in this case.
It will be there on the next one. I didn't have it on my radar at all coming into this one. I'll need to do some research first, but I fully expect it to show up in my next dividend ETF video.
BALI is one that I will be watching. It has performed very well in the early days, but it is also fairly tech heavy on the underlying holdings. Will be interesting to see what happens in certain markets.
@@JeffTeeples Absolutely, Jeff! At 52 years old, I have SCHD in my taxable account. Looks like its also a good strategic plan to also load-up on both DGRO and JEPQ into the brokerage account and roth IRA?
Hey Daniel. I love SCHD in my taxable account, personally. The benefit of the qualified dividends is lost in a Roth and Traditional IRA. Traditional IRA qualified dividends ultimately get taxed as ordinary income (they drop the qualified tax perks when the withdrawal takes place). In a Roth qualified dividends are solid, but again, there is zero advantage compared to all other growth types because nothing is taxed. A taxable account is the only account type that takes advantage of qualified dividends compared to other income types. I prefer my growers in the Roth and Traditional IRA (QQQM, VGT, and VOO). This is backwards compared to conventional advice, but I can prove the logic out on a napkin (okay, maybe a spreadsheet) to anyone (:
@@Kevinw4040 I wish I knew about ETFs 40 years ago , I don’t trust people easily, but Jeff Teeples has the honesty and integrity I am looking for in an investment guru, I am into the process now, never too late.
I did mention that in the video. However, the numbers are far more extreme the other way around as compound plays out. That is a factor for SCHD 'long-term' even with the make-up in the early stages (the make-up goes both ways). Also, remember, in reality there is negative selling required. HYSA were close to 0% most of those years (: So considering that makes this even more lopsided. I decided to keep it simple to make HYSA look proportionally better (:
I was slightly surprised to hear about DGRO, as the best one in the "vacuum" :) Jeff, do you beleive, DGRO has the best potential for dividend growth from all known, or at least the most popular ETFs on the market (like VIG, VYM, SCHD ... etc.) ? And the only reason why you are not adding it to the portfolio is the overlap with the tech sector of VGT ? Thank you for your work!!
Thanks for watching and for the comment. You nailed it. I love SCHD as my dividend/value holding alongside QQQM, VGT, and VOO (my other core holdings). Low overlap and a better 'bond like' floor for the portfolio when tech crashes. But if I didn't have the growth ETFs, I would go with something like DGRO to have 'a hybrid of everything' with some quality dividend growth. SCHD puts more emphasis on clean balance sheets and value. DGRO is basically strictly dividend growth and grabs over 400 stocks, with a super low top 10 holdings of 26%. I love that diversity and balance overall as a 'one dividend ETF for everything'.
VGT is my favorite growth ETF because I'm a tech bull, and as you mentioned it has outperformed QQQM over the past decade. I like to mix in some QQQM because it reduces my exposure to tech (50% instead of 100%) in my growth section a little bit. I love tech, but don't want to have all of my eggs in one basket.
Looking into those 13 dividend etfs the ones that had the largest negative drop over the past 2 down turns from covid 19 were SPYD by far the worse then VYMI. The ones that withstand the down turns the best were DIVO the leader follow almost the same SCHD, VIG, VYM. I didn't include JEPI or JEPQ as these are too new to check the data.
I've been keeping an eye on SPYI. The expense ratio leaves a lot to be desired, BUT, it has performed very well. I think it will have a spot in my future top dividend ETF updates.
Great video, can you explain how expense ratios are paid? like If I hold cowz for 2 years the .49 how is it paid? Do you have to do anything? Is it automatically taken out yearly? How does it work? Does total return also already factor it (the expense ratio) in like the 5yr TR of 118%
Hey Oldrin. Thanks for watching and leaving a great question. The expense ratio is taken directly from the ETFs net asset value. It is done for you in the background, so you don't have to 'pay anything directly'. It makes the ETF worth a little less throughout the year (as the managers are being paid). Most 'total return' charts *do* include the expense ratio. However, it is still an important factor for future results (because nobody knows what will happen, but starting with a high ER is a major drag on projected returns).
Thanks for watching and dropping a comment. Good ole NOBL. I'll add this one to the list. It was one of the first dividend ETFs I was interested in when it was new.
Thanks for watching and for the suggestion. I did my top growth ETFs a couple videos ago. I plan on updating both the growth and dividend choices every 6 months or so to reflect market changes.
Would you say a high yield savings account is still the best option for someone saving up for a big purchase, like a house? Are there better options on the market out there, or would they be too risky?
I'm with Charlie from the comment below. It really depends on how many years you have until you need the money for the big purchase. If it is within a year or two, then a HYSA, T-bills, or money market would be the choice. If it is 5 or more then a mix of SCHD + high yielding ETFs (I like JEPQ) will likely be better. But if you have ZERO wiggle room for a mini-crash, I would roll with a HYSA. It is a bad 'long-term' cash investment compared to SCHD, but it keeps your value stable.
I think SDY is solid. I prefer SCHD for the higher dividend growth rate, yield, and total return over the last 10 years. I feel like SDY companies are a little too established (: Not a ton of growth to be had. SCHD strikes a balance a little better in my opinion.
Are there specific types of markets where SCHD perform the best and worst? Is there therefore a dividend etf that compliments SCHD excluding growth etf . example when SCHD is performing poorly another specific dividend ETF typically should outperform? Just like VGT is balanced by QQM for when tech isn’t on a huge run
I would like to design a 5 fund portfolio with one core but two dividend and 2 growth ETFs. The additional dividend and growth ETFs to provide additional balance for when SCHD and VGT underperform because of how they are constituted
Hi Felice. That is a great question, and I think the most honest answer from anyone should be 'it depends' or 'I don't know'. SCHD, and stocks/ETFs with a value tilt in general (lower price to earnings ratio than something like QQQM, VGT, or even VOO), historically do better in messy markets full of fear. Every crash and rise is different, but dividend paying companies with comparative low debt and dividend growth history have outperformed in down markets, as a whole, over the past 100 years, scratch that, forever. To answer your specific question, I like DGRO and VIG as 'dividend growth ETFs with some tech' compared to SCHD. However, for me, I like the combination of SCHD + VGT (or QQQM or SCHG) better than the 'hybrid dividend EFTs'. But if I wanted everything in one I would prefer DGRO or VIG. It gets tech, growth, and dividends fairly well. I view SCHD as my 'long-term' bond holdings. I know it can crash more, but I also like the superior dividend growth it provides in all markets compared to the random nature of bonds or HYSA.
SCHD is my dividend etf in my Roth portfolio. Is there another ETF just like SCHD that can really compliment it? Like FDVV or DIVB have caught my eye a little bit.
Hey Tyler. You actually nailed it in my opinion. FDVV and DIVB are both about 25% tech, which can bolster SCHDs returns while remaining stable compared to the growth ETFs like VGT, QQQM, SCHG, etc. I like DIVB (didn't know about it until these comments) with the methodology, diverse holdings, and VERY high dividend growth rate. I'm excited to track this one moving forward. I genuinely can't believe it has under 500M of AUM.
@@JeffTeeples yes it intrigues me, DIVB, it use to be .25 expense ratio but ishares dropped it I think last year to .05. Problem is I needed someone’s opinion on it and there thoughts cuz I been thinking about it pulling the trigger on it for a while. AUM was under 300 million last year, but it has slowly grown since then. FDVV, I’ve thought about it too just hesitant on either one lol.
I can't believe I never bumped into DIVB. The performance is weirdly balanced and good. With that expense ratio, and a little more research, I may be smashing the buy button. It seems... wrong, that the AUM are so low with 'those results' for a decently long time. I mean, it's still 'fairly new', but not like a 2022 or 2023 new or anything. Head scratcher.
@@JeffTeeples AUM isn’t too much of a concern for me cuz I’ve kept an eye on it and it’s been going up for a little bit now, however it’s the type of tech companies I’m kind of not the biggest fan of in my opinion cuz of the stability history of the dividends from those top tech companies in the fund. Or am I being too over concerned about that? And the dividend growth since inception has dropped once in the middle years, but other than that I do like it tho and the fact that it covers buyback type assets is cool too. I mean what do you think of that in your opinion from what you see?
I'm going to take a deeper dive this week. I think this could be my video for next Sunday (this Sunday will be small cap vs large cap). I'm intrigued. I think you're right to be skeptical about certain aspects. I like to look for things like consistent dividend growth vs 'big 5 year CAGR' because if it had a weird drop 5 years ago, and then went back up, the number will look huge, but I don't like that it had a major hiccup right before it. I'll report anything weird I find in my video. Excited for this one.
It is surprising! That is amazing, *great* work. I think I'm closer to 16% to 20% (I used to be much heavier in VGT + MSFT + AAPL + TSLA (made over 800%) + a few others. I decided to get more balanced a few years ago. Rolled all my stocks (slowly over the years) into VGT. Have done well, but not 25% well! Jealous (:
![The [Best Dividend ETF] for 2024](http://i.ytimg.com/vi/qDAj5WVy198/mqdefault.jpg)
The reason why SCHD is so great is because the overlap is very low when paired up ETF's like VOO, VGT, etc. I personally use it to balance out my VOO and FTEC positions as a defensive and bond replacement play.
Thanks for watching and for the comment. I could not agree more, you nailed it. SCHD has very unique holdings compared to the 'typical' dividend ETF. Very little overlap with the popular growth ETFs and the market.
Thanks Jeff, would love to see a deeper dive on FDVV
Thanks for watching and for the request. I think you're right, it is worthy of a video in the near future. Noted.
I agree 👍
Great video. Also don’t forget the tax implications of SCHD vs HYSA… another advantage to SCHD!!!
Thanks for watching and for the comment, Anthony. You are spot on, gotta love those qualified dividends!
@@AJGiliberti2 I am learning that from Jeff, thanks to him, your comments is spot on!
Great info! I'm sticking with SCHD.
Thanks for the kind words Christina. I'm sticking with SCHD as well (:
SCHD (and SCHY for international) and DIVO (and IDVO for international) make up my back bone. I also have SPYI with an 11% tax free income rate (no taxes on the income AND less risk than JEPQ). I then have a splattering of individual REITs and BDCs as satellite positions. Great video 👍
Same!
Very nice holdings Gary. Thank you for taking the time to watch and for leaving a comment.
Thanks for showing the SCHD vs 5% HYSA! So eye opening to see how the dividend growth rate of SCHD crushes the HYSA, plus the price appreciation! Now that a rate cut is imminent in the near future, schd is definitely the way to go for me. Dividend growth rate is key and you reap the high benefits especially at year 10 😮 Investing is a long term game!! Keep up the good work!
Thanks Jon! I appreciate you taking the time to watch the video and for leaving the kind words.
Missing DGRW. Would love to hear your thought and see how it compared to the EFT's presented in the video. Great job. Thanks.
Thanks for watching and for the comment. I like DGRW quite a bit! I consider it more of a 'core' holding like VOO or VTI. The key metrics align more with that cornerstone or foundational makeup. I will be sure to include it when I rate my favorite cornerstone holdings. Actually, I need to do that, I don't think I've ever made a video like that.
Some balanced funds get the short end of the stick because they are hybrids instead of 'dividends', 'value', or 'growth' specific.
Missing DGRW because it sucks for dividends. Good for price growth, but you might as well just buy the SP500.
DGRW is a growth ETF whose universe is dividend stocks. It's Dividend comma Growth.
Hard to beat a combination of Jepq Jepi Schd and vgt. Got all these in my Roth
Hey Jeff. As always, great name. +1 to your parents. I like that combo for cash-flow and long-term growth. Stay the course with that and you'll like be happy in many years from now.
I purchased COWZ in April and I'm still under water. Was 7% down but now only a little over 1%. But videos like this make me think that I should stick with it.
Hey Bryan. I was shocked to see it struggling by comparison lately. But I'm with you, when we zoom out things are looking better.
Why does expense matter if the yield/growth includes the cost of all fees? Net Yield is Net Yield. Another good video - thanks!
Expense? Are you referring to expense ratio? If that's the case that is not included with the others. It's a separate cost. So it does matter.
Hey John. You're right that the expense ratio is included in the total return of an ETF. Therefore it doesn't matter in hindsight to your point.
They do matter for purchasing decisions and looking forward. They are the most accurate 'predictor' of the future results of 'like funds'. No single person or system can predict the future. We would all be rich if we could.
But a fund starting at negative 0.50% returns with a 50 point expense ratio is a 7 figure (in most cases) disadvantage over an investing career. I know that sounds exaggerated, but compound math is crazy (I have a video or two breaking it down with real numbers on a real calculator online (that I replicated in Excel for flexibility of the scenarios on the fly). Expense ratios are awful variables to start with before moving forward. They don't matter, retroactively, when we have all the data.
I think what he meant was that it is included in the total returns (which considers dividends, price return, and fees). You're right that it isn't accounted for, specifically, in the yield. But the net impact is in the 'total returns'.
It is statistically the most important variable for predicting future results. Spoiler alert, they all suck and it is very hard, haha. But there is a lot of research about why it is the most impactful consideration for 'like funds'.
Hi Jeff, I am new to your channel. I am focused on growth, Vgt, SMH and some stocks. But I am trying to learn more about dividend investing for retirement. I own a small amount of VIG and Schd. I know way more about tech investing than I do dividends. I'm hoping to learn a lot from your channel. Thanks Chris
Hey Chris. Thank you for taking the time to watch the videos and for dropping a comment. It is great to have you here! I have a dividend growth vs dividend yield video coming out soon that I think will help quite a bit.
I know they are still new as they are still not a year old but would love to see you put GPIQ and GPIX on this list for comparison's sake. Both are issued by Goldman Sachs and have an expense ratio of 0.29%. YTD they have been outperforming their JP Morgan counterparts in JEPQ and JEPI.
Thank you for the recommended tickers. I will keep my eye on these ones, new to me.
Great Video, Amazing comparisons, all your videos are so valuable with in-depth details and clear road maps...👍👍👍
Thank you Syed. I really do appreciate your taking the time to watch the videos and for leaving positive feedback.
I think it would be interesting if you compared these etfs on how much they dropped from the highs and lows during the 2 times the market got hit with covid 19. The 2020 drop and the drop that came with inflation with interest rates going up. I think SCHD would hold up better with less of a drop on the down turn than most of these etfs. If this is true it is just another great reason to own SCHD.
Hey Michael. This is a great video idea. I will often times get into a bunch of key metrics without diving deeper into one aspect. Assessing the floors during bad times would be a good one!
Nice video, good info. I'm big in SCHD and DGRO for overall return and JEPQ and SPYI for cash flow. All anchored by S&P 500 fund. Cheers
Very nice Richard. That is an awesome way to go about the different roles of the portfolio. I don't think you can go wrong with that mix over a long time duration.
Love the ETF Table comparison breakdowns, makes it easy to compare numbers against each other. I've added 2.5% position with DIVO as I love the extra yield and the performance it had shown recently and it's low over lap with JEPQ & SCHD.
I had to trim down our JEPQ in half and used the funds to get some SPYI and QQQI, they've been great so far in performance and the extra monthly yields I plan to reinvest half to create a position in COWZ for the long term actively-managed strategy.
Thanks for taking the time to watch the video and for leaving a great comment. I like the strategy, and I think it is cool you play to reinvest some of the juicy monthly yields into COWZ. I love reinvesting dividends!
Good stuff, to be sure. I needed some SCHD reminders of why I have it, but should allocate more additions. I agree and like the lack of overlap with my other growth ETF's.
Thanks for watching Karl. I appreciate the comment. The community comments help keep me on course as well. It is nice to know we are not making bad long-term decisions (well, or that we are not going down alone, lol).
My choices are SCHD -SPLG - QQQM - JEPQ - DGRW - COWZ in that order, highest to lowest percentage wise with some other smaller dog and cats like MAIN and O
Hey Kevin. Love the mix. Stick to that long-term and win.
Gotta have SPHD !!! Especially today’s markets !!! Paid every month too
I have that one queued up for my next dividend update video (: Thanks!
What's your opion of spyi and qqqi over jepi and jepq ?
I like JEPQ and JEPI better in the early stages because of the difference in expense ratios. However, I am watching both of those ETFs with an open-mind.
Specifically JEPQ and QQQI (I like the Nasdaq-100 for this style of investment). Year-to-date, JEPQ is ahead on total return by 2.87%. But that is a very small sample size thus far.
Hey Teep. Great video. I have moved more into SPYI, QQQI, and IWMI. A little higher cost but I am a fan so far. I am not in too deep yet..😉
Thanks for the kind words as always. Hope the portfolio is doing well (I'm sure it is). I have been watching SPYI and especially QQQI as options myself. I do like JEPQ better so far, but, I like to stay open-minded and to continue to research. Glad the holdings are working well so far!
Currently holding SCHD, DGRW, JEPQ, JEPI, MLPX. Have WES, BXSL, ET, CSWC & COWZ on the short list to enter the portfolio.
That's a nice mix of ETFs right there. We hold and/or like many of the same ones. Thanks for watching and commenting.
Happy Sunday! Great video ....
Thanks Anthony! Happy Sunday to you as well (:
Dividends are undervalued Some months I only can put in $100 to $ 300 a month but with those dividends coming in every month I use that cash to buy more growth Other wise wouldn’t have all that extra cash to buy at loss and highs
On August 5th I had $700 I could put in. But I’ve been saving my dividends putting it in SGov for a few months I unloaded an extra $1230 all from dividend funds !!! I otherwise wouldn’t have on the biggest dip of the year
I love dividend stocks and ETFs. Granted, I love cornerstone holdings like VOO and VTI, and growth ETFs as well. I do think many investors undervalue the net value of dividends.
We hear a lot about the cons of dividends, but so many don't 'truly' understand the power of dividend growth. I have a video coming out next Sunday about it.
I like the entire investing world (:
Great analysis! Cheers 🍻
Thanks Scott. I appreciate the positive feedback.
Great video, Jeff! Lots to ponder... FDVV and COWZ (at 6.9%, nice 😂) are pretty nice looking options. As I roll out of growth in the future, they will be candidates in my retirement dividend strategy.
Hey Nick. I think those are both great options for retirement. Pretty good 1-2 punch with the high value and cash flow of COWZ combined with the all-around dividend stats and total returns of FDVV.
I'm going to look more into DIVB as well. I have been blown away so far by what I've seen. Planning a deep dive this week. I'll very likely make a video about it. Also want to touch more on AVUV as well in the near future.
Hello Jeff! Another great review, thank you for this comparative analysis of the ETF's. What I noticed is that you like JEPQ as a dividends producing vehicle, but at the same time you almost never mention SPYI, and I know that expense ratio is highter for this covered call ETF, but does it really make a big difference until fund can pay higher dividends and at the same time has some growth from appreciation perspective? And from diversification point, having JEPQ as the only high dividend-cow with its exposre to NASDAQ, having SCHD with exposre to Doe Jones, but not having high yeild solution with exposure to SNP500, what is the secret behind this ? :) Of course JEPI tracks SNP500, but my understanding is that it can be riskier to have a significant part of investments in shares of the same issuer (JP Morgran).
And also if it's going about the high yeild stuff, how you feel about BDC's, that can also have a potential for dividends and appreciation growth?
Sorry for this batch of questions, It's just interesting to know your opinion. Thank you!
These are really great questions.
I'm going to tackle this a bit out of order because some will naturally answer themselves.
VOO is our largest single holding at around $400,000. I love, and have a lot of the S&P 500. I do not have a ton of QQQM for Nasdaq-100 exposure (~$100,000) by comparison.
That is partially the reason for no JEPI or SPYI. For producing passive income, I prefer the Nasdaq-100 index to the S&P 500 when dealing with options. It has a higher volatility than the S&P 500, which increases the premium income (compare JEPI to JEPQ, for example). For 'that' part of my portfolio, I do not care as much about portfolio value. I want the most cash-flow possible to pay the bills.
For long-term cash flow and investing in general, I strongly prefer SCHD to all of the covered call ETFs. These dividends start at a low yield but compound like crazy. SCHD is my second largest holding behind VOO.
VOO will beat JEPI and SPYI in total returns long-term. It is mostly how the funds ceilings are capped by the option strategy. Assuming markets go up, long-term, VOO will win just due to how the math plays out. Same with QQQM against QQQI and JEPQ.
Here are the total returns (dividends included) since SPYI started getting data:
VOO: 45.73%
SPYI: 31.36%
JEPI: 24.50
QQQ: 61.70%
JEPQ: 45.17%
I prefer QQQM + VGT as my long-term growth. SCHD as my long-term value. VOO as my long-term cornerstone. And JEPQ as my give me cash now so wife can retire early in a few years.
I rank JEPQ as last place if we are talking 'long-term investments'. It is a glorified HYSA for me that I don't necessarily care about the value of at any one time. So the high VIX is great because it produces more income than something like JEPI.
I own several of the etf's on your spread sheet. Two more that I would recommend are PBDC, which is a tremendous professionally managed business development etf, and PFFA, which is a U.S. preferred stock etf. Both yield between 9-10%.
Thank you for taking the time to watch and for leaving some recommendations. I will look into these.
As always, thanks for the great content.
Thank you for watching and for the kind words. I appreciate your support.
I recently found out about DIVB. I was rewatching this video and thought if it would be a good idea to include it on the list.
Hey Ron. DIVB review coming on Sunday. Great timing (:
great vid and lots of juicy info. cheers
Thanks for watching Edwin. I appreciate the positive feedback.
Great video, thanks! I just recently saw a video on FDVV. It looks like a blend between growth and dividends. It has Nvidia and PG, for example. Some might want two or more ETFs but I guess if you want one ETF with both growth and reasonable amount of dividends, it is your product. If COWZ had a lower expense ratio, I'd be in. I can handle 0.49 short term but as a long term investment, with all the unknowns, it just seems like the wrong choice for me to make.
Hey Alex. I am with you on the .49% expense ratio with COWZ. The ETF is so solid, but that is a bit steep. I am painfully aware of how much money 49 basis points compounds to over many decades. It's deceptive. I'm still keeping my eye on it. FDVV is interesting, I will continue to watch it moving forward. Very solid lately, but to your point, I like having SCHD & growth ETFs instead of a hybrid. It is over 25% in tech, and I would rather have that 'mix' with SCHD & growth friends.
Jeff, another great video. I know that you are a big fan of JEPQ. Have you looked at GPIQ? Similar funds. Thank you.
Thanks for the kind words. I appreciate it. I have added GPIQ to the watch list. It is new, lower expense ratio, same index, and quite interesting. Competition is a great thing.
Holy COWZ! I'm left wondering if I should be adding COWZ to my portfolio if I'm holding long term?
Hey Sean. Lol, holy COWZ is right. I have been blown away by the key metrics around this one since I started following it.
I'm personally taking the watch and see approach at the moment. It may be a nice portfolio staple in the future. I'm the guy that doesn't mind being late to the party, but I want to make sure the party is legit.
It's expense ratio is a bit higher but SPYI has become my employee to pair with SCHD :)
Hey Leonard. I think that is a great dividend combo. SPYI has been impressive so far! Better total returns than JEPI since inception. It is one that I'll be watching. It does break my ER rule though (50 bps or lower).
@@JeffTeeples please explain ER rules (50 bps. Or lower) .Thanks.
We’ve been big proponents on having a $FDVV & $SCHD mix. They only have a 15% crossover and when one is down, the other is up. We’ve been adding positions in both. In retirement we like them instead of bonds for years 6-8 in bucket #2 in retirement.
I love that strategy. You're exactly right, FDVV is deceptively high in tech (just over 25%). It makes it an awesome counterbalance to SCHD, but without being exposed to the same risks as growth ETFs. Stay the course and enjoy retirement (:
Nice video, Jeff. I just jumped into the investing game about three weeks ago with 9k. I started with SCHD, DGRO and QQQ for my foundation. Also bought some AIQ, SHLD and SMH. My stocks are NVDA, SOFI, PLTR. Would love to hear your thoughts/advice on my picks. Thanks
Hey Chris. I think you're off to a great start with that foundation. I love SCHD, DGRO, and QQQ! You may want to consider QQQM if you are a buy and hold investor. It is the same as QQQ but with a lower expense ratio. But not a huge deal either way.
I prefer VGT for a more broad 'sector play' as a long-time hold. AI and any other tech movements are included because it is a broad tech sector ETF. That way you don't have to keep up with the fads over time. The next thing always comes, but tech seems to be a staple moving forward.
Thanks!!!
Thanks Nick! I really appreciate it man. Your support means a lot to the channel!
Hello Jeff, first of all thank you for the detailed answers, really appreciate that!
What is your favourite strategy of adding SCHD to the portfolio? I mean, for instance now SCHD is all times high, but adepts of DCA will probably buy shares systematically ignoring the current price. Or, if, for example, SCHD producing enough cash to buy at least one additional share, then it's better to ignore the price, and to buy it even all times high, just to increase the snowball effect? (basically it's more about approach in general, not only about SCHD :) if stock produces enough cash to buy more shares is it a good idea to wait for market to go down?) Thank you!!
Thanks for watching and for leaving a comment. This is a great question.
I use the approach of dollar cost averaging money into the market (as much as possible at all times) into my target allocations. This allows me to buy the relative dip without thinking about it.
A simple example. Say you have 50% SCHD and 50% VGT as your portfolio target allocations (goal weights for both). When you go to buy more, simply purchase the one that has fallen below it's allocation. This means it is comparatively lower than the other ETF (even if both at all time highs).
This is the strategy I use for my portfolio. If an ETF has a goal of 10%, and it is 9.4%, it is a buy rating. If it is 10.6%, it is a hold (it has outperformed the other ETFs on a comparative basis).
For me, I've only purchased SCHD in the past couple years because VGT and QQQM have performed so much better and are 'overweight' compared to SCHD. When the market crashes and growth dips, I'll be buying the others.
Please compare JEPI & JEPQ against SPYI & QQQI. Thanks!
This is a great idea. It is one I have on my list of future videos. I'm waiting for QQQI and SPYI to gather more history in the meantime.
@@JeffTeeplesthank you!!
Nice vid. Hey you should check out divb. Its an dividend growth etf that focuses on companies that buyback shares at a massive rate along with syld and pkw. Syld and pkw are a lil better, they have way more aum but the expense ratios are higher. Divb expense is .05%
Interesting! DIVB has incredible stats (total returns, dividend growth rate, and solid yield) and feels very underfunded. I'll add this one to the list for sure. Thanks for watching and for giving a great suggestion.
@JeffTeeples The aum is minimal. No one knows about it, which is understandable. Pretty decent so far. My only fear is that it ends up becoming a value fund instead of dividend growth fund
It would be awesome to also have a video on different options for cornerstone/ broad market holdings, as you pointed out in one of the comments. Thanks Jeff for all the informative and fun content!
And regarding dividend ETFs, what do you think about SCHY? I imagine it would be an interesting addition to the comparison mix here, given that it is Schwab's international counterpart to SCHD, and you have already included VYMI in the comparison.
Hey Amir. I think you're right in that a cornerstone video would be good. I always skip over that and assume VOO or VTI, but, there are so many great options!
You read my mind, I am adding SCHY for the next one to give VYMI some competition.
Hello Jeff Teeples, great video as always. I'm curious, from my understanding, if I were to have a huge portfolio value, such as 5 million dollars or so hypothetically, then SCHD would be the best choice for that situation/scenario right?
Hey Tyson. The 'best' will depend on your goals and risk tolerance in general.
But I would say if your goal is to have consistent *and* growing dividends over the years to outpace inflation then SCHD is a great ETF. It has never paid less per share than the year before, and has destroyed inflation to keep your purchasing power high.
At 5 million, who cares if the portfolio dropped by 20% as long as the cash flow grows year after year. Over time, the price will also go up as well.
Thanks!
Thank you Brianna! You're the best, glad you liked the video. I appreciate the extra support you have given the channel.
Another well explained show! Any thoughts on AMLP?? Thanks!
Thank you for the kind words. I appreciate the support of the channel. I don't know a lot about MLPs to be honest (beyond the basics). I've never dove deeper into the pros and cons.
The 10 year total return of that fund shows 13.07%. This is compared to 539% of VGT, 236% of VOO, and 195.6% for SCHD. I know those are long-term investments with other advantages, but without a deep education on the topic I wouldn't put money into it personally.
Full discloser with this one is that I'm far from knowledgeable in this specific area.
Jeff - FDL is very good dividend etf that has outperformed S&P for last 3 years, but got beat pretty soundly over last 10 years. It has 4.1% yield and grows dividend by 8% per year. SCHY is International version of SCHD and starts at 4.75% yield and has grown that, but its very new. P/E is 13 and return on equity is 20%. My concern with foreign dividend paying stocks is that the companies don't face the scrutiny that US stocks do when/if they cut their dividend.
Hey Tom. I appreciate you watching the video and leaving a comment. Great picks, I will add them both to the list for my future dividend videos. Thanks!
There's no such thing as "Risk off", because there is risk involved with every single financial decision that is made.
Boomer is learning this lesson the hard way. He sold SCHD in the mid to low $70s to get his 3.5 % to 5% yield. Now he's either lost, or is going to lose, all of that yield and more buying back SCHD in the low to mid $80s.
Hey Chris. Exactly! People will chase yield in the moment because it always feels good to get the boost. It's like me now with JEPQ, haha.
But for real, when the rates drop for HYSA it is already 'too late' to look to SCHD because 3.8% (or whatever it is then) is higher than the money markets or HYSA.
I keep cash, but I never view it as a 'long-term way to make cash flow' compared to SCHD. It is my target allocation available money to buy market fluctuations.
I have never, and will never, 'choose' HYSA or MM over SCHD. It is a costly decisions long-term (and often times short term as well to your point).
I currently own a combo of SCHD/DGRO, but I've been researching and keeping an eye on FDVV, which blows all the others away. BUT, FDVV's top 3 holdings are also NVDA, APPL, and MSFT, so it looks very strong in a bull market, but unsure if it will buoy portfolios in a down turn like SCHD does. Thoughts?
You nailed it. I will be interested to see how the dividend growth and the total returns hold up in a bad market compared to SCHD and others.
keep pumping out those financial informational videos Jeff!!!! my current go to ETF is QYLD.... not the biggest payer.... but my cost basis is $17 and add about 50 shares to my portfolio a month....
Qyld seems like a yield trap. The dividend growth rate is negative.
Thanks for the support Kevin. Will do! The thing I like about QYLD and JEPQ is that reinvesting will take advantage when the price dips naturally. I love SCHD, and it will be a big part of my retirement, but JEPQ has grown on me for this reason.
My average cost is $49.40. If the price dips to $43, I'll be swooping up more shares than before. If it goes to $55 then I know that it has performed well in addition to the cash flow that is always there.
I think I'll have a mix of a few things when I *NEED* *NEED* the cash flow in full retirement.
The dividend growth rate of the covered call ETFs will be all over the map in general. Down 15%, up 30%, etc. This is because the premium income having dependence on the market volatility. SCHD or DGRO is cash-flowing directly from the underlying holdings, which 'tend to' increase their dividends every year for X amount of years. JEPQ and QYLD will be more dividends, but all over the map. They are more like HYSA that depend on the Federal Funds rate. We can't 'assume growth' for our savings accounts. It is directly at the mercy of the rate. Only fed fund rate = market volatility in this case.
I really expected that DIVB would be on the list?
It will be there on the next one. I didn't have it on my radar at all coming into this one. I'll need to do some research first, but I fully expect it to show up in my next dividend ETF video.
@@JeffTeeplesit's Morningstar gold rated
Bali beats every single one of those and better dividend as well
BALI is one that I will be watching. It has performed very well in the early days, but it is also fairly tech heavy on the underlying holdings. Will be interesting to see what happens in certain markets.
I love Schd. I’m late to the game on investing (which is my fault). I wish I knew about ETFs 30 years ago in my twenty’s.
You are not alone. Keep going!
Amen Kevin. But, it's never too late. Time to make up for lost time and focus money into SCHD. Keep it going man.
@@JeffTeeples Absolutely, Jeff! At 52 years old, I have SCHD in my taxable account. Looks like its also a good strategic plan to also load-up on both DGRO and JEPQ into the brokerage account and roth IRA?
Hey Daniel. I love SCHD in my taxable account, personally. The benefit of the qualified dividends is lost in a Roth and Traditional IRA.
Traditional IRA qualified dividends ultimately get taxed as ordinary income (they drop the qualified tax perks when the withdrawal takes place).
In a Roth qualified dividends are solid, but again, there is zero advantage compared to all other growth types because nothing is taxed.
A taxable account is the only account type that takes advantage of qualified dividends compared to other income types.
I prefer my growers in the Roth and Traditional IRA (QQQM, VGT, and VOO). This is backwards compared to conventional advice, but I can prove the logic out on a napkin (okay, maybe a spreadsheet) to anyone (:
@@Kevinw4040 I wish I knew about ETFs 40 years ago , I don’t trust people easily, but Jeff Teeples has the honesty and integrity I am looking for in an investment guru, I am into the process now, never too late.
I have SCHD, looking closely at DGRO
Hey Ron. That is a couple nice ETFs to choose from. Can't go wrong either way.
That HYSA comparison should have included the shares you would need to sell in the early years to make up the 25000 return.
I did mention that in the video. However, the numbers are far more extreme the other way around as compound plays out. That is a factor for SCHD 'long-term' even with the make-up in the early stages (the make-up goes both ways).
Also, remember, in reality there is negative selling required. HYSA were close to 0% most of those years (: So considering that makes this even more lopsided.
I decided to keep it simple to make HYSA look proportionally better (:
SVOL
Hey John. I've seen that one going around lately. It's not for me, but I hope it works well for you!
I have about 30% in SCHD, VOO, and QQQm, 5% in SMH and the rest in Tesla, Vertex, Palnatir, and a Bitcoin.
Hey Tommy. That is a nice portfolio mix! Very similar to mine. I think if you keep pumping money into that thing you'll do great over many years.
I was slightly surprised to hear about DGRO, as the best one in the "vacuum" :) Jeff, do you beleive, DGRO has the best potential for dividend growth from all known, or at least the most popular ETFs on the market (like VIG, VYM, SCHD ... etc.) ? And the only reason why you are not adding it to the portfolio is the overlap with the tech sector of VGT ? Thank you for your work!!
Thanks for watching and for the comment. You nailed it. I love SCHD as my dividend/value holding alongside QQQM, VGT, and VOO (my other core holdings). Low overlap and a better 'bond like' floor for the portfolio when tech crashes. But if I didn't have the growth ETFs, I would go with something like DGRO to have 'a hybrid of everything' with some quality dividend growth.
SCHD puts more emphasis on clean balance sheets and value. DGRO is basically strictly dividend growth and grabs over 400 stocks, with a super low top 10 holdings of 26%. I love that diversity and balance overall as a 'one dividend ETF for everything'.
@@JeffTeeples As I know VGT outperformed QQQM historically, what does this approach can give? I mean having VGT+QQQM and not only VGT. Thank you!
VGT is my favorite growth ETF because I'm a tech bull, and as you mentioned it has outperformed QQQM over the past decade.
I like to mix in some QQQM because it reduces my exposure to tech (50% instead of 100%) in my growth section a little bit. I love tech, but don't want to have all of my eggs in one basket.
Looking into those 13 dividend etfs the ones that had the largest negative drop over the past 2 down turns from covid 19 were SPYD by far the worse then VYMI. The ones that withstand the down turns the best were DIVO the leader follow almost the same SCHD, VIG, VYM. I didn't include JEPI or JEPQ as these are too new to check the data.
Love the follow-up to your last comment. That is ballpark what I would expect! I'll try to work this stuff into a future video.
What about SPYI with a yield of 11.79%???
I've been keeping an eye on SPYI. The expense ratio leaves a lot to be desired, BUT, it has performed very well. I think it will have a spot in my future top dividend ETF updates.
Great video, can you explain how expense ratios are paid? like If I hold cowz for 2 years the .49 how is it paid? Do you have to do anything? Is it automatically taken out yearly? How does it work? Does total return also already factor it (the expense ratio) in like the 5yr TR of 118%
Hey Oldrin. Thanks for watching and leaving a great question.
The expense ratio is taken directly from the ETFs net asset value. It is done for you in the background, so you don't have to 'pay anything directly'. It makes the ETF worth a little less throughout the year (as the managers are being paid). Most 'total return' charts *do* include the expense ratio. However, it is still an important factor for future results (because nobody knows what will happen, but starting with a high ER is a major drag on projected returns).
How about SPHD
I will check it out. Thank you.
Hi great video, any thoughts on Invesco's XLG - S&P 500 Top 50 ETF?
Thanks for watching and for the question. I think XLG is solid, but prefer MGK for the mega cap ETF.
NOBL
Thanks for watching and dropping a comment. Good ole NOBL. I'll add this one to the list. It was one of the first dividend ETFs I was interested in when it was new.
Can you do your growth etf holdings/ your favorites with the current prices of them
Thanks for watching and for the suggestion. I did my top growth ETFs a couple videos ago. I plan on updating both the growth and dividend choices every 6 months or so to reflect market changes.
@@JeffTeeples great thanks! I’ll watch now
DLN
Noted. Quality ETF to add for the next one. Thanks!
Would you say a high yield savings account is still the best option for someone saving up for a big purchase, like a house? Are there better options on the market out there, or would they be too risky?
How far away is the house purchase?
I'm with Charlie from the comment below. It really depends on how many years you have until you need the money for the big purchase.
If it is within a year or two, then a HYSA, T-bills, or money market would be the choice. If it is 5 or more then a mix of SCHD + high yielding ETFs (I like JEPQ) will likely be better.
But if you have ZERO wiggle room for a mini-crash, I would roll with a HYSA. It is a bad 'long-term' cash investment compared to SCHD, but it keeps your value stable.
Would like to see DIVB and also SCHY.
Add IDVO as well
I love both of these suggestions. Noted to add for next time. Thank you.
This one is new to me. I'll check it out. Thanks!
What’s your opinion on PFFD?
Hey James. Thanks for watching and for the question. I don't like PFFD, personally. I think there are better ways to produce safe cash-flow.
Thoughts on SDY?
I think SDY is solid. I prefer SCHD for the higher dividend growth rate, yield, and total return over the last 10 years. I feel like SDY companies are a little too established (: Not a ton of growth to be had. SCHD strikes a balance a little better in my opinion.
Are there specific types of markets where SCHD perform the best and worst? Is there therefore a dividend etf that compliments SCHD excluding growth etf . example when SCHD is performing poorly another specific dividend ETF typically should outperform? Just like VGT is balanced by QQM for when tech isn’t on a huge run
Great question. I have a little AVUV and COWZ.
I would like to design a 5 fund portfolio with one core but two dividend and 2 growth ETFs. The additional dividend and growth ETFs to provide additional balance for when SCHD and VGT underperform because of how they are constituted
Hi Felice. That is a great question, and I think the most honest answer from anyone should be 'it depends' or 'I don't know'.
SCHD, and stocks/ETFs with a value tilt in general (lower price to earnings ratio than something like QQQM, VGT, or even VOO), historically do better in messy markets full of fear. Every crash and rise is different, but dividend paying companies with comparative low debt and dividend growth history have outperformed in down markets, as a whole, over the past 100 years, scratch that, forever.
To answer your specific question, I like DGRO and VIG as 'dividend growth ETFs with some tech' compared to SCHD.
However, for me, I like the combination of SCHD + VGT (or QQQM or SCHG) better than the 'hybrid dividend EFTs'. But if I wanted everything in one I would prefer DGRO or VIG. It gets tech, growth, and dividends fairly well.
I view SCHD as my 'long-term' bond holdings. I know it can crash more, but I also like the superior dividend growth it provides in all markets compared to the random nature of bonds or HYSA.
What about Bali
Interesting new ETF. I will keep my eyes on this one. Thanks!
SCHD is my dividend etf in my Roth portfolio. Is there another ETF just like SCHD that can really compliment it? Like FDVV or DIVB have caught my eye a little bit.
Hey Tyler. You actually nailed it in my opinion. FDVV and DIVB are both about 25% tech, which can bolster SCHDs returns while remaining stable compared to the growth ETFs like VGT, QQQM, SCHG, etc.
I like DIVB (didn't know about it until these comments) with the methodology, diverse holdings, and VERY high dividend growth rate. I'm excited to track this one moving forward. I genuinely can't believe it has under 500M of AUM.
@@JeffTeeples yes it intrigues me, DIVB, it use to be .25 expense ratio but ishares dropped it I think last year to .05. Problem is I needed someone’s opinion on it and there thoughts cuz I been thinking about it pulling the trigger on it for a while. AUM was under 300 million last year, but it has slowly grown since then. FDVV, I’ve thought about it too just hesitant on either one lol.
I can't believe I never bumped into DIVB. The performance is weirdly balanced and good. With that expense ratio, and a little more research, I may be smashing the buy button. It seems... wrong, that the AUM are so low with 'those results' for a decently long time. I mean, it's still 'fairly new', but not like a 2022 or 2023 new or anything. Head scratcher.
@@JeffTeeples AUM isn’t too much of a concern for me cuz I’ve kept an eye on it and it’s been going up for a little bit now, however it’s the type of tech companies I’m kind of not the biggest fan of in my opinion cuz of the stability history of the dividends from those top tech companies in the fund. Or am I being too over concerned about that? And the dividend growth since inception has dropped once in the middle years, but other than that I do like it tho and the fact that it covers buyback type assets is cool too. I mean what do you think of that in your opinion from what you see?
I'm going to take a deeper dive this week. I think this could be my video for next Sunday (this Sunday will be small cap vs large cap). I'm intrigued. I think you're right to be skeptical about certain aspects. I like to look for things like consistent dividend growth vs 'big 5 year CAGR' because if it had a weird drop 5 years ago, and then went back up, the number will look huge, but I don't like that it had a major hiccup right before it.
I'll report anything weird I find in my video. Excited for this one.
Could you comment on NVDY?
Thanks for the question. I am not a fan of that fund (or any like it) at all. 101 basis points and extremely unstable.
@@JeffTeeples I may sell it after NVDA earnings.
I like the eight wonder of the world.
Hey Joey. It is crazy how amazing the 8th wonder of the world is (:
@@JeffTeeples would it surprise you that I managed to compound my assets for 25% a year for the last 14 years?
It is surprising! That is amazing, *great* work. I think I'm closer to 16% to 20% (I used to be much heavier in VGT + MSFT + AAPL + TSLA (made over 800%) + a few others.
I decided to get more balanced a few years ago. Rolled all my stocks (slowly over the years) into VGT. Have done well, but not 25% well! Jealous (:
I think a Chinese ETF would be ideal. Charlie munger makes a great point about them having better companies and a better economy
Thanks for watching and commenting. He did like Chinese companies. I think I would go with a more broad, ex-US world ETF when looking outside the US.
BITO ?
Thanks for watching and for the question. I would give that a stay far away rating if you are a long-term investor (:
VOOV
Hey Bryan. Solid pick.