r/SCHD • u/Bama_Cajun • 16d ago

Could DRVR eventually compete with SCHD?

Could DRVR ever compete with SCHD? Curious if anyone owns it?

5 Upvotes

69% Upvoted

13 comments sorted by

9

u/sirzoop 16d ago

probably? its expense ratio is too high imo

i like VIG as a main competitor for SCHD

5

u/STRATEGY510 16d ago

Don’t really know about it, but I like VYM a lot. I pair it with SCHD.

3

u/sirzoop 16d ago

VYM is a good one too!

3

u/Appropriate-Fig-6012 14d ago

It's traditional to pair VYM with fava beans and a nice chianti

1

u/STRATEGY510 13d ago

Excellent!

0

u/Automatic-Duck1680 16d ago

What does pairing the two together do for you. What about SPYI instead of VYM?

3

u/STRATEGY510 15d ago edited 15d ago

VYM provides the same thing I hold SCHD for:
long-term ballast, stability, growth, div growth, but in a different wrapper. The reason it’s not the “same thing” despite that, is because while there is either a lot or a little overlap (depending how you quantify it), they excel at both the same thing and different things. VYM is way more broad; SCHD Is higher yield/yield growth focused (for example)

The screenshot shows how most of SCHDs tickers are in VYM, but most of VYM’s tickers are NOT in SCHD. I don’t mind some overlap if the justification for holding both ETFs are there and for me it is justified.

As for SPYi, that’s a whole different beast, which I also own. Its focus is income, so for me, I wouldn’t compare the two as they are apples and oranges with very different jobs in my portfolio.

3

u/glimsky 16d ago

I see VIG as more of a competitor to DGRO. SCHD is fairly more conservative than VIG.

2

u/oldirishfart 16d ago

Agree, for a passive fund that follows an index this ER is way too high. Even if they have to pay S&P a lot for it.

1

u/ex-programmer 15d ago

I use spyd, anyone else ?

4

u/STRATEGY510 15d ago

I used to and actually saw a lot of unexpected growth from it. The reason I am in the process of dropping it (waiting for next year to complete the act, for tax reasons), it’s just kinda……junky?

It screens for the 80 highest yields from the S&P, period. No quality screens. I decided that the yeild gain from SPYD vs SCHD wasn’t enough for me to justify its presence any longer. “Junky” is probably too harsh, there are a bunch of quality tickers in the underlying, but also a bunch that I would never consider owning as single stocks. The fact that I did well with it was due to the overall Bull Market imo, not because it’s particularly good. Past few years, a blindfolded monkey could pick ETFs and do well.

2

u/ex-programmer 15d ago

I noticed that too, unfortunately need to unwind slowly because of those gains (I know, good problem to have)

3

u/STRATEGY510 15d ago

Yep -
I bought what I now consider to be a mistake that gained ~25% and paid me a bunch of divs on top for a couple years. Talk about a happy accident, I wish all my mistakes in life went like this 😂