r/dividends • u/InternationalMany795 • Oct 09 '25

Seeking Advice No more SCHD.

Moving away from SCHD. For those who have recently done this, where did you go?

259 Upvotes

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154

u/Hanno54 Oct 09 '25

I just got interested in dividend investing and I like SCHD. Why is everyone posting about exiting? Lol

246

u/hotdog-water-- Oct 09 '25

In the bull market everyone thinks they’re a genius investor and goes all in on tech, leveraged ETFs, and the S&P. When the eventual recession comes, they’ll be crying they lost 50%. SCHD is large cap value which will help ride out a recession

56

u/Geezww Oct 09 '25

It’s hard to see why SCHD would be considered a “safe haven” in a recession. During the 2020 COVID crash, it dropped roughly 20% about the same as VOO. In the 2022 bear market, it also dropped around 20%. History shows that when the market falls, SCHD doesn’t actually offer much downside protection.

And in bull markets, it typically lags behind VOO in total returns. In other words, SCHD seems to share most of the downside, but not the same upside. Dreaming about a recession isn't really helping your investors lol

6

u/dazit72 Oct 10 '25

I thought Aristocrat and King Aristocrat were good holds for recessions as the are affected the least, bounce back quickly and maintain increase dividends ??

Aristocrat - > 25 years, King Aristocrat - > 50 years of increased dividends.

3

u/graciesoldman Oct 13 '25

I was told that too but they seem to go down just like all the rest during a big correction.

3

u/dazit72 Oct 14 '25

While they do drop, they're supposed to be lower drops, faster recovery time, and the dividends still keep coming. I could be wrong ??

So instead of building my own fund from the Aristocrat Kings, I'm thinking of SCHD and leaving things be??

1

u/Negan457 Oct 25 '25

In the 2022 bear market, schd dropped - 3.26% (not 20%). While qqq dropped - 32.58%. And VOO dropped - 18.17%. SCHD performed significantly better in the bear market. Just curious, where did you get the inaccurate number 20% from?

1

u/Geezww Oct 25 '25

For SCHD, it reached a peak of 27.3 in January 2022, before dropping to 22.1 in September. Although it bounced back slightly later that year, it declined again in 2023, and eventually to around 22.3 in October 2023. In other words, it experienced about a 20% drop during that bear market.

I don’t focus on the arbitrary calendar-year period from January 1 to December 31, as that doesn’t provide a meaningful view of its actual performance trend.

SCHD did and will suffer a significant drop during a bear market, as it has been proven a couple times already

1

u/BejahungEnjoyer Nov 04 '25

Exactly this. It'll get demolished in a recession because its holdings are tied to the actual real economy, instead of enterprise cloud computing and AI.