r/ETFs 1d ago

US Equity SCHD focus is dividends, 4% DY, it is doing better than VOO and QQQ this year

You lose less during crises but gain less in the long term(second chart). So if you don't like much volatility SCHD is a good pick. Also it pays dividends, about 4% dividend yield a year.

20 Upvotes

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6

u/Sparkle_Rocks 1d ago

I like the long term results better with VOO or QQQ(M). I can see some retirees investing in SCHD as they may need less risk when withdrawing living expenses, but I don't see it as being desirable for people under about age 55. QQQ was just up that much because of the tech stocks in the top 100 stocks in Nasdaq, but that may or may not happen in the next 10+.

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u/Temporary_Net8014 1d ago

Looking back to 1920, the top 10 stocks in terms of market cap at the beginning of each decade underperformed the overall market in the proceeding 10 years. There's no saying history will repeat itself of course. But if the trend does continue, that's more of a reason to shy away from a fund like QQQM

5

u/zeppo_shemp 1d ago

it's very well established that dividend paying stocks are more durable in downturns.

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u/Turbulent_Bid_374 1d ago

Yes, it is a nice somewhat defensive ETF and pairs nicely with Tech ETF such as XLK or even VTI/VOO.

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u/Temporary_Net8014 1d ago

SCHD is a large cap value fund. All large cap value indexes, regardless of dividends, have done a lot better than VOO or VTI year to date

VTV, SCHV, FLCOX DFLV

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u/Left_Fisherman_920 17h ago

For me, red is red.