Lots of people misunderstanding The Professor's stance on dividends. He doesn't hate them, he says you shouldn't chase yields. The fact is total return is the ultimate measure, and super high yield funds simply can't get even close to SPY or VTI on this front.
I just bought SCHD last week before I saw this video. I'm new to investment and feel that dividend ETFs are safer for me to invest. I have learned a lot watching your videos, new subscriber of yours. Thanks
Excellent content and presented at a pace which facilitates understanding the details and insights you offer. I watch most of your videos twice. I’ve gained better perspective on investing and confidence in managing my considerable portfolio.
Thanx Rob. That’s a good look into basic ETF investing. I moving into ETF investing these days. Thanx for the info. I’m new to SCHD but it always gets good reviews.
Agree @ not being a fan of dividend tilt. Monthly payments don't matter. Total return matters most, and can be converted to monthly payments. If I wanted to make a factor bet (ie: value comeback), I would do something like 80% total market, 20% small-cap value.
Rob, I am a VOO accumulator but I do not want to sell my shares, ever. I realize that dividend funds may have a lesser growth and a taxation toll in a taxable account, but still it will generate income and I will never have to sell shares. I appreciate your insight and if possible, make more videos on dividend funds in future. Thanks
Diversifying in Value, that's how I found SCHD and why I cont to add to it. Div is a bonus and very welcome in this market. Small cap value also doing great today. Actively managed inexpensive small cap ETF = AVUV. Would love to hear your take on REITs in this environment. Currently holding OLP and Stagg
Great in depth video. I've been struggling to decide whether to include SCHD in my Roth IRA but this video has made up my mind. Would it be irrational to hold an equal amount of VTI and SCHD? Or would it make more sense to lean more on VTI?
Rob, at 26:00 you express surprise that adding schwab increased performance. I think you have to remember that you didn't just replace the overall stock fund, you also replaced a portion of the international fund, and intl funds have been comparatively dreadful and a drag on every portfolio for far more than a decade, with just a couple a brief blip exceptions. I know you're about diverse investments & being involved across a lot of sectors, understandably so, but I got almost completely out of intl about a year ago after decades of intl being nothing but a drag, and thus far, I have no regrets. Your mileage may vary, past performance, etc. ;-)
I'm treating my portfolio as one giant annuity. Stock market dropping, but my dividends aren't and that is what I'm living on in retirement. Leaving the principle alone, and with a downed market, I've shifted some transfer to bank account back to reinvest so I get more shares.
This is the best video on div ETF! Thank you so much. Could you also compare SCHD and JEPI, if you happen to have some time? I know they work with different strategies, but wondered if I can mix these two ETFs for my cashflow, or just stick to SCHD.
yea i was curious about JEPI too i own a significant amount of SCHD but am curious how JEPI compares especially in regard to taxes since its heavily involved in options contracts..the dividend yield sure sounds attractive though
I have made my portfolio of 6 etfs total Schd Vti Vxus Dhs Vnq Jepi Equally divided or so Though there may be some overlap I believe this yields the most dividend returns at just 20k you can bring in 100/mo minus expenses which isn't much if you add expenses Can you possibly try and simulate this on your end and give some feedback?
Is SCHD a US only fund ? If so then my guess is that the reason your three fund plus schd portfolio outperformed a little bit is that you have a lower allocation to the foreign stock fund. Perhaps a more fair comparison would substitute vigi for the 5% you took from the intl fund, or compare to a portfolio with 25% intl instead of 30%.
Hi Rob, thanks for this awesome video. Newbie here, and a subscriber of yours. May i know whats the difference or disadvantage (if any) of getting the S&P500 through TSX only like vanguard's VFV. Am I missing a lot? should I get US$ as well?
Great, thanks. Can you compare international ETFs. They have much lower P/E than American ETFs. If we have rotation to value and international over the next decade they would be winners. VEA, VPL seem to be better than VXUS
Thanks. Do you think for folks with 20+ years until retirement that adding a dividend ETF allocation could replace a bond allocation? 2.5-3% dividend yield and market gain participation with moderate increased risk vs similar bond yielding ETF?
If you still have 20 years until entering retirement, in my opinion you don’t need bonds. As long as you have a steady monthly income from work, and some emergency fund, you shouldn’t need them.
I would like to know which other dividend funds you do not like (I probably own some). In the video, you said a link would be in the blurb below the video. I have not found it yet. I would be grateful if you would make that info available.
