Should I invest in VOO or SCHD? (2024)

Should I invest in VOO or SCHD?

Deciding between SCHD vs VOO comes down to the dividend yield vs. market-equivalent total returns. Investors who prefer higher dividend income with near-market returns may prefer SCHD upon completing due diligence. The SCHD dividend is consistently twice that of VOO.

Should I invest in SCHD or VOO?

SCHD is focused on dividend-paying stocks, while VOO has a broader exposure to the overall U.S. stock market. If you want to optimize for dividends and share growth, SCHD would be a good choice for you. If you want to optimize for share growth from the overall U.S. stock market, VOO would be a better choice for you.

What will SCHD be worth in 10 years?

Based on historical data and a widely accepted formula, the Finance Professor predicts that SCHD's price per share will double by 2032, reaching around $115 to $120 by 2030.

Is SCHD a good investment in 2023?

On an annual basis, almost like clockwork, SCHD has performed in the top 1/3 of its Morningstar category and had done so far a decade straight. That is, until 2023. Investors who were betting that this streak of success would continue got an unfortunate reminder that SCHD isn't quite infallible after all.

Is it worth it to invest in SCHD?

SCHD looks like an attractive investment for the year ahead and beyond. I continue to be bullish on the fund based on its strong long-term track record, attractive dividend yield, minuscule expense ratio, and compelling portfolio of blue-chip dividend stocks that offer a mix of yield and potential capital appreciation.

Is SCHD good for long term?

This portfolio also trades at a tangible discount to the broader market. SCHD's long-term track record of double-digit annualized returns over many years also inspires confidence that this is still a good place to be in the long term.

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.

Is SCHD a buy sell or hold?

SCHD has a conensus rating of Moderate Buy which is based on 45 buy ratings, 49 hold ratings and 8 sell ratings.

Is it smart to invest in VOO?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for VOO ETF to perform well in the short-term.

Why is SCHD dropping?

Schwab U.S. Dividend Equity ETF experienced a sharp drop after Oct. 19, 2023, due to selling pressure in its top holdings and a high correlation of daily returns.

Is SCHD better than JEPI?

The JPMorgan Equity Premium Income ETF (JEPI) and Schwab U.S. Dividend Equity ETF (SCHD) are popular options for dividend investors. JEPI offers lower volatility, higher dividend yield, and better risk-adjusted returns compared to SCHD.

What to pair with SCHD?

The other ETF to pair with SCHD is the ProShares Bitcoin Strategy ETF (BITO), which is the only Bitcoin-focused fund in the market today. While this fund tracks Bitcoin futures contracts, it tracks the overall Bitcoin performance.

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%.

Does SCHD pay out monthly?

SCHD Dividend Information

SCHD has a dividend yield of 3.46% 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.

Should I buy SCHD or VYM?

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.

Is SCHD the best dividend stock?

Schwab US Dividend Equity ETF (SCHD)

Equally affordable but offering nearly double the yield, this top dividend ETF from Schwab is the No. 2 dividend fund by assets and another great option for "set it and forget it" portfolios.

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."

Is SCHD good for taxable accounts?

Investors investing in taxable accounts argue that SCHD's dividends aren't taxed as harshly as the interest income from a Treasury. That is true, but a favorably taxed unrealized loss of over 2% does not compare well with a taxed gain over 4%.

Is SCHD a good index fund?

Schwab U.S. Dividend Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHD is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market.

What ETF does Buffett recommend?

Buffett's favorite ETF

portfolio: the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard 500 Index Fund ETF (NYSEMKT: VOO). Both are index ETFs that track the S&P 500.

Does Warren Buffett own VOO?

Warren Buffett's Berkshire Owns 2 ETFs: SPY and VOO

If you want to buy what Buffett has at Berkshire, he has two ETFs listed on the 13F: SPDR S&P 500 ETF Trust SPY. Vanguard S&P 500 ETF VOO.

What two ETFs are good enough for Warren Buffett?

The two investments held in Berkshire Hathaway's portfolio that Buffett recommends more than anything else are two S&P 500 index funds. The SPDR S&P 500 ETF Trust(NYSEMKT: SPY) and the VanguardS&P 500 ETF(NYSEMKT: VOO).

Will SCHD bounce back?

SCHD ETF: 2023 Was Tough, But This High-Quality Dividend Fund Should Rebound In 2024 | Seeking Alpha.

Is SCHD underperforming?

The market has spoken, as SCHD underperformed the S&P 500 (SPX) (SPY) after an attempt to bottom out between July and August 2023. However, SCHD holders suffered another outward rotation before bottoming out again in late October 2023.

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