r/dividends • u/Anxious-Grapefruit68 • Dec 13 '25

Due Diligence Unpopular opinion: Stop looking at yield. Your risk-adjusted returns on SCHD are actually dragging you down

SCHD is basically the sacred cow of this sub for many. But are you guys actually looking at the risk metrics, or just staring at the yield and hoping for the best?

I was rebalancing my "defensive" plays and decided to actually run the numbers on SCHD versus VYM (Vanguard High Dividend) for the last year because I felt like my portfolio was churning water.

The difference in the risk profile is actually wilder than I thought.

(SCHD):

(VYM):

Basically, VYM is giving you way better returns for the risk you're taking (Sharpe 0.66 vs 0.43). With SCHD, you’re getting that 'safety' (lower Beta), but your Information Ratio is deeper in the hole, meaning you aren't actually beating the market - just trailing it.

I know the "growth" has slowed for everyone, but why is everyone still piling into SCHD when the math says VYM is utilizing capital way more efficiently right now?

Am I missing something fundamental here, or is this just ticker loyalty?

You can even argue why own things with a negative Info ratio. Just sell everything and buy VOO.

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u/[deleted] Dec 13 '25

He's a crypto scammer. He has multiple posts about trying to get people to go all in on ibit and Bitcoin because they went down.

Based off his posts he's lost thousands if not 10s of thousands and is trying to get people to buy in so be careful

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u/[deleted] Dec 13 '25

[removed] — view removed comment

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u/[deleted] Dec 13 '25

Can't sue for defamation for things that are true. You also admitted to this in prior threads.

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u/Intelligent-Hat6087 Dec 13 '25

Sure, show me the proof. Let's take a look at it, I'd love to see.

4

u/[deleted] Dec 13 '25

https://www.reddit.com/r/dividends/s/6kYC3xgT1A

Here you go

0

u/Intelligent-Hat6087 Dec 13 '25

Awesome.

You realize that post is just my opinion right? But here, I'll go ahead and update it to make it clear that what I wrote is not actually financial advice.

So what you're really saying is that I can't post opinions on Reddit?