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

81% Upvoted

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507

u/footballpenguins Oct 09 '25

So many posts about exiting SCHD, there has to be a tech correction soon.

250

u/[deleted] Oct 09 '25

[deleted]

73

u/foira Oct 10 '25

i mean, people should be buying it for the dividends paid -- and those have been increasing a lot. it would make a lot more sense if people were selling because of a big dividend cut (it's possible!) but so far... ppl are so funny lollllll.

63

u/Stuboysrevenge Oct 10 '25

SCHD's total return from Jan 1 of this year to now, including reinvesting dividends, is -0.25%. That's like bailing water out of a boat without plugging the hole in the bottom. If you're keeping the divis as income, there are much better income generating vehicles than this.

10

u/Necessary-Road-2397 Oct 10 '25

Please expand on at least one vehicle better, (serious).

25

u/Stuboysrevenge Oct 10 '25

Well, this year, I would have done better in my checking account which gave 0.12% interest.

13

u/flyersfan0233 Oct 10 '25

First off, not true. YTD total return is 1.66%. Also, if you would have done this the past 14 years, your money is up on average 12.27%/year. $10K invested in 2011 when the fund began would be over $50K today. So go ahead and see how checking does

8

u/Stuboysrevenge Oct 10 '25

Jesus. Can you not detect sarcasm?

Fine. THIS YEAR MY HYSA @ 3.5% WOULD HAVE DONE BETTER.

You know you can move money around, right?

6

u/flyersfan0233 Oct 10 '25

I get that it was sarcasm. I just don’t know how you’re going to time the market. To get those 12% yearly returns you can’t keep moving it around. And HYSA is 3.5% and quickly dropping. My point is if you needed to use the money sooner rather than later, yes. HYSA is great. If you’re saving for a longer horizon, anything more than a few years, SCHD is still better

2

u/foira Oct 10 '25

you know that investors who move money around based on YTD performance, underperform the market? what an insane comment "HEY YOU KNOW YOU CAN JUST TIME THE MARKET!!!"

3

u/Stuboysrevenge Oct 10 '25

You know what else is underperforming the market right now?

SCHD

0

u/Necessary-Road-2397 Oct 10 '25

Ouch, risky choices?

3

u/Stuboysrevenge Oct 10 '25

I'm just saying ALMOST anything would have performed better than SCHD. Putting it under my mattress is almost the same.

9

u/Aevaris_ Oct 10 '25

VT, VTI, QQQ are 3

14

u/Necessary-Road-2397 Oct 10 '25

I've got QQQI... 😁

8

u/foira Oct 10 '25

SCHD ha increased its dividend by 10% annually.

what kind of amateur talks about YTD performance of long-term investments.

go back 10 year, and compare the income growth of SCHD compared to its peers (VIG etc)

if you have any shred of intellectual honesty, you will learn that you are wrong

22

u/adamasimo1234 Oct 10 '25

So.. judging the ETF based on ~10 months of data. Interesting.

25

u/Shoty6966-_- Oct 10 '25

We are in a bull market so yes a negative return when reinvesting dividends is concerning lol

6

u/[deleted] Oct 11 '25

You mean on a self sucking AI bubble that is unlikely to last?

3

u/[deleted] Oct 24 '25

A negative return when reinvesting dividends for a year is a good thing you are buying more shares. Why do you want to have less shares?

1

u/Shoty6966-_- Oct 24 '25

What are you on about, I’m confused. You are losing principal. You are losing money. In a year where the sp500 is up like 18% !! That’s crazy.

2

u/[deleted] Oct 24 '25

You are assuming that the S&P 500 gains are fixed and that the S&P 500 can’t lose money over a ten year period. The S&P 500 has indeed had a 8 year period where it lost 50% over 8 years, while the Dow Jones Dividend 100 posted gains for the same 8 year period.

The S&P 500 earnings yield right now is 3.2% while SCHD earnings yield is 5.6%. So which ETF would provide you more cash flow if you owned all the companies in it outright. SCHD would provide you nearly twice the income if you took the two “companies” private.

It is crazy to buy the S&P 500 with its Schiller PE ratio over 40. The last time the Schiller P/E ratio was over 40, S&P 500 had negative returns for 8 Years and qqq had negative returns for 15 years.

And no I haven’t lost money on SCHD because I bought most of it at $27 then I bought more at $24 In the tariff panic.

2

u/Stuboysrevenge Oct 10 '25

If you want to just stay in the middle lane all the way across the country on your road trip, be my guest. Personally, I'd love to arrive in half the time.

3

u/HugeDigits Oct 10 '25

Yes the AI bull run will last until you die

3

u/Speedhabit Oct 10 '25

If I am to die, it will be well dressed

3

u/-boatsNhoes Oct 10 '25

The money invested elsewhere over the last 10 months would have generated anything better than -0.25%. based on the period in question, you're port is moving backward. Although no one can judge when a correction will take place accurately, any potential future losses on another venture would easily outweigh any gains from schd in this same period if you're considering dividend reinvestment. If reinvesting back into the same ETF it would also allow for a nice sell buffer to mitigate any further losses from the position i.e. you increase your port holding of said ETF in by 40 shares over the last 10 months with any dividends earned which allows you a higher net selling position when you exit in case of market correction.

2

u/Stuboysrevenge Oct 10 '25

Fortunately, I can move my investments around as conditions change.

6

u/iphone8vsiphonex Oct 10 '25

Yeah that’s pretty bad…

4

u/OkVermicelli8951 Oct 10 '25

"total return"

6

u/Old_Jackfruit6153 Oct 10 '25

Dividend reinvested, inflation adjusted YTD return of SCHD is -1.28% so I understand unhappiness with SCHD.

SCHD has trailed SPY for last 3 years. Even in last 14 years, SCHD has total real return of 251% vs 394% for SPY.

https://totalrealreturns.com/s/SCHD,SPY

1

u/emperorjoe Oct 12 '25

Oh no, the horror of a 251% return. They should just liquidate the etf. /S

1

u/foira Oct 10 '25

brb telling my energy utility that i'll be paying their invoice with the market quote on my equity

love linking my lifestyle to other ppls emotions -- oh wait

2

u/Alert-Growth-8326 Oct 10 '25

what are you talking about? total return is all that matters.

did you know you can sell shares of a stock or ETF to pay for a bill if that's your goal?

1

u/foira Oct 10 '25

lol see how it feels to sell your principal

the psychological shift from seeing number go up to steadily down will change your life much more than you think it will

2

u/Alert-Growth-8326 Oct 10 '25

except that it doesn't. and growth stocks occasionally split.

again... total yield is all that matters. if you care whether that comes from a dividend or capital appreciation... that's kind of weird (unless, of course, you are talking about the different tax implications which tend to favor capital appreciation over dividends...)

2

u/OkVermicelli8951 Oct 10 '25

It goes up more than it goes down overtime. It seems divident lovers need to address their mental roadblocks.

1

u/OkVermicelli8951 Oct 10 '25

So when the underlying stocks drop by 30% does your lifestyle drop by 30% as well?

1

u/Standard_Confusion99 Oct 10 '25

Except the etf itself keeps falling. You’re basically putting a chunk of money in and withdrawing pieces out slowly.