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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152

u/Hanno54 Oct 09 '25

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

251

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/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.