Should I invest in VOO or SCHD? (2025)

Should I invest in VOO or SCHD?

SCHD - Performance Comparison. In the year-to-date period, VOO achieves a 4.00% return, which is significantly higher than SCHD's 1.14% return. Over the past 10 years, VOO has outperformed SCHD with an annualized return of 13.04%, while SCHD has yielded a comparatively lower 11.93% annualized return.

Should I invest in SCHD and VOO?

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. There may even be room to add exposure to both, depending on how you want to build out your portfolio.

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%.

Is SCHD still a good investment 2023?

Yes, dividend stocks as a whole underperformed the market, but SCHD did especially bad. If you look at the standard deviation of returns, we see that SCHD wasn't really any riskier than the market. Its maximum drawdown for the year was only about 1% greater than that of the S&P 500.

Should I invest in SCHD?

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.

Why is SCHD so popular?

The next reason SCHD remains attractive is that it owns a portfolio of blue-chip dividend stocks. SCHD owns 102 stocks, and its top 10 holdings make up a reasonable 40.5% of the fund's assets. Below is an overview of SCHD's top 10 holdings from TipRanks' ETF holdings tool.

Is VOO a good investment for beginner investors?

The Vanguard S&P 500 ETF (VOO 1.03%) 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.

Is SCHD good for long term?

The fund tracks the Dow Jones U.S. Dividend 100 Index, which selects companies with a record of consistent dividend payments and strong fundamentals. SCHD is cheap to access with a low expense ratio of 0.06% and has shown respectable returns, making it a promising investment option for the passive income investor.

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.

What is the most profitable ETF to invest in?

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.

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.

What stocks will double in 2023?

AI leader Nvidia (NVDA), Shopify (SHOP), Meta Platforms (META), Li Auto (LI), Array Technologies (ARRY) are expected to more than double earnings per share in 2023 or current fiscal year, some by far more. And they're all near buy points, with several actionable now.

Does VOO and SCHD overlap?

VOO and SCHD have a lot of holdings overlap. But VOO contains all U.S. stocks in the S&P 500 index, while SCHD contains only the top-value dividend stocks. VOO has outperformed SCHD over the past 10 years. However, SCHD has a greater concentration of risk exposure in the top 10 holdings.

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.

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 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%.

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 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 return rate for VOO?

Is S&P 500 better than VOO?

VOO - Volatility Comparison. SPDR S&P 500 ETF (SPY) and Vanguard S&P 500 ETF (VOO) have volatilities of 3.35% and 3.34%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same.

Is VOO and QQQ a good portfolio?

Investors often trust QQQ and VOO with their funds because these investments give you exposure to the stock market without relying on trying to track individual stocks, which has proven to be extremely risky over the last few years. You can also purchase VOO as the Admiral Shares mutual fund (VFIAX).

What is the 10 year return on SCHD?

Schwab US Dividend Equity ETF (SCHD): Historical Returns. Video Player is loading. 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.

Is Jepi better than SCHD?

SCHD has never had an exceptionally high dividend yield and hovers around 2.5% to 3.5%. JEPI, on the other hand, has a significantly higher dividend yield than SCHD, with a very impressive 11.7% yield in 2022.

Is SCHD tax advantaged?

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%.