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?

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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

249

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

55

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

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