Should I invest in VOO or SCHD? (2024)

Should I invest in VOO or SCHD?

Both funds are excellent, low-fee options for your portfolio. SCHD prioritizes dividend income and has a higher yield. VOO also pays a dividend, but its dividend will always be smaller (lower yield). VOO is better diversified, while SCHD has more holdings concentration risk.

Should I invest in SCHD or VOO?

SCHD - Performance Comparison. In the year-to-date period, VOO achieves a 3.94% return, which is significantly higher than SCHD's 0.81% return. Over the past 10 years, VOO has outperformed SCHD with an annualized return of 12.76%, while SCHD has yielded a comparatively lower 11.65% annualized return.

Is SCHD a good long term investment?

SCHD similarly scores highly on profitability and conservative investment. These factors are pretty much laid out in the fund's security selection strategy, so you'd expect these to emerge as driving factors. In total, you have a portfolio whose performance is driven by value, quality and defense over the long-term.

Does it make sense to invest in Spy & VOO?

Should I Invest In Both VOO and SPY? Probably not, unless each fund satisfies different investment goals. For example, you might buy SPY if you want to trade actively, or even venture into day trading, because of its high volume, and buy VOO to hold over the long term because of its lower expenses.

What ETF is better than SCHD?

SPHD: Which Dividend ETF is Better? The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) and the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) are two popular dividend ETFs from leading asset managers. With a dividend yield of 4.5%, SPHD's yield is higher than SCHD's dividend yield of 3.5%.

Why is SCHD so popular?

SCHD is large, liquid, and costs almost nothing compared to other 5-star-rated high-yield ETFs. Even iShares, the king of low-cost ETFs, can charge 4X the fees, and other 5-star value funds can charge as much as 12.5X. That doesn't mean they aren't worth it, but performance isn't guaranteed, and fees are.

What is the most profitable ETF to invest in?

Best ETFs for beginners as of January 2024
TickerFund name5-year return
SMHVanEck Semiconductor ETF33.26%
SOXXiShares Semiconductor ETF30.19%
XLKTechnology Select Sector SPDR Fund27.00%
IYWiShares U.S. Technology ETF26.17%
1 more row
Jan 31, 2024

Is SCHD expected to go up?

Based on analyst ratings, SCHD's 12-month average price target is $82.51. What is SCHD's upside potential, based on the analysts' average price target? Currently there's no upside potential for SCHD, based on the analysts' average price target.

Does SCHD pay out monthly?

SCHD has a dividend yield of 3.45% and paid $2.66 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Dec 6, 2023.

Is VOO a good investment for beginner investors?

The Vanguard S&P 500 ETF (VOO 0.06%) is one of the most popular investment options for index investors. And with good reason. Its low expense ratio and strong track record of tracking the index make it a great option for those simply looking to match the S&P 500.

Should I own VOO and QQQ?

VOO will offer consistent returns with diversification and lower costs. QQQ will offer you the opportunity to bring in higher returns, but these come with more risks and a higher cost. If you're looking for the best return possible on your money, then you're going to want to go with QQQ.

What is the best dividend ETF?

The Best Dividend ETFs of February 2024
Dividend ETFsDividend Yield
Vanguard International High Dividend Yield ETF (VYMI)4.39%
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)4.55%
WisdomTree U.S. SmallCap Dividend Fund (DES)2.92%
FCF International Quality ETF (TTAI)10.38%
3 more rows
Feb 1, 2024

Why is SCHD underperforming?

Investors are bidding up riskier assets on the belief that the economy is in good shape and will be yet for a while longer. That's put more defensive asset classes, such as dividend payers on the back burner. That has made SCHD not just an underperformer but a severe underperformer.

Should I buy VYM or SCHD?

SCHD price and total return (including dividends) has outperformed VYM over a ten-year investment horizon (see chart below). Past performance is not indicative of future returns. VYM is better diversified, while SCHD has more holdings concentration risk. VYM has four times as many holdings as SCHD.

What is the Vanguard equivalent to SCHD?

VYM - Volatility Comparison. Schwab US Dividend Equity ETF (SCHD) has a higher volatility of 3.03% compared to Vanguard High Dividend Yield ETF (VYM) at 2.81%. This indicates that SCHD's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure.

Why is SCHD the best ETF?

Bottom Line: SCHD Is So Much More Than Just Its 3.7% Yield

No ETF is perfect, but SCHD is 5-star Gold rated by Morningstar, for good reason. Over the last decade, SCHD's post-tax returns are in the top 3% of its peers, and its pre-tax returns are in the top 2%.

Is SCHD high risk?

Schwab US Dividend Equity ETF™ Risk

Ratios above 1.00 indicate higher risk than average. Schwab US Dividend Equity ETF™ has a below average total risk index of 1.09 because of its standard deviation of 16.3%.

Is SCHD good for retirement?

Buying and collecting SCHD in a pension account can be a good strategy due to the tax benefits and the difficulty of selling the investment, making it a potentially profitable long-term option. "Collecting dividends steadily, regardless of the ranking, can lead to great profits in the future."

What is the fastest growing ETF?

  • Best Growth ETFs.
  • Invesco QQQ Trust (QQQ)
  • Vanguard Growth ETF (VUG)
  • iShares Russell 1000 Growth ETF (IWF)
  • iShares S&P 500 Growth ETF (IVW)
  • Schwab U.S. Large-Cap Growth ETF (SCHG)
  • SPDR Portfolio S&P 500 Growth ETF (SPYG)
  • iShares Core S&P U.S. Growth ETF (IUSG)

Which ETF is best for long term investment?

No commission fees to trade stocks, options or crypto, and no account minimums to start.
  • iShares Core S&P 500 ETF (IVV)
  • Vanguard Growth ETF (VUG)
  • Vanguard Information Technology ETF (VGT)
  • Schwab US Dividend Equity ETF (SCHD)
  • Vanguard Total Stock Market ETF (VTI)
  • Vanguard Total International Stock ETF (VXUS)

What is the most aggressive ETF?

Aggressive ETF List
Symbol SymbolETF Name ETF NameDividend Date Dividend Date
AOAiShares Core Aggressive Allocation ETF2023-12-22
GMOMCambria Global Momentum ETF2023-12-22
EAOAiShares ESG Aware Aggressive Allocation ETF2023-12-22
EAORiShares ESG Aware Growth Allocation ETF2023-12-22
1 more row

Does SCHD pay capital gains?

This caused investors who were investing for income to bid up the prices of those quality dividend stocks, which are what SCHD invests in, so that they not only received a higher income yield, they saw gratifying capital gains.

What is the average return on SCHD?

In the last 10 Years, the Schwab US Dividend Equity ETF (SCHD) ETF obtained a 11.56% compound annual return, with a 14.49% standard deviation. The ETF is related to the following investment themes: Asset Class: Equity. Size: Large Cap.

How often does SCHD rebalance?

The index composition is reviewed annually and rebalanced quarterly.

Is SCHD a buy hold or sell?

Based on SCHD's technical indicators, SCHD is a Strong Buy.

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