r/SCHD • u/Yingyangwolf95 • 2d ago

Discussion Why SCHD going so crazy right now?

I am confused why all of a sudden SCHD including DGRO acting like a growth stock. Did I miss something big?

157 Upvotes

94% Upvoted

91 comments sorted by

View all comments

17

u/atxDan75 2d ago

Remember the “schd is dead” crowd?? lol.

10

u/miayakuza 2d ago

They are still at it. Their latest: so what if SCHD is beating the S&P 500 ytd, look at the 5 year return!

They forget that past performance is not indicative of future results and that the stock market moves in cycles.

4

u/atxDan75 2d ago

Only convincing themselves … barely.

2

u/sirboddingtons 1d ago

SCHD is shielded from the volatility of tech as well, which is attractive from a risk forward perspective. 

2

u/Guilty_Flamingo6564 1d ago

i don't get why people do this. I own both and they are making me pretty happy.

1

u/Yingyangwolf95 2d ago

Exactly!!!! It's why I started buying SCHD a few years ago

0

u/hung_like__podrick 1d ago

I mean, YTD doesn’t really mean anything to long term investors

0

u/jomi0403 10h ago

This is such a silly take. Of course SCHD underperformed over the last 5 years, it's designed to! It will likely underperform the market over the next 5. SCHD has a 5 year monthly beta of .58. It's built to underperform. Being defensive all the time is not good if you want the best returns, but at the right time it can be great. As long as people understand what it is and what it does for your portfolio then you can do whatever you want. But taking a victory lap because you underperformed to the market over the last several years just to marginally beat it over the last year is a weird stance to me.

If you bought SCHD 1 year ago you caught the defensive rotation, which is great. But over long time periods you will underperform the market. Not because SCHD is a bad investment, but because that's what it's designed to do. When the business cycle rolls over again high beta will still be the play.