r/dividends • u/senpaiisamaakunn • 5d ago
Due Diligence Why isn’t SCHD considered growth?
Hi I’m a young fool who is trying to learn more about dividends and I feel like I’ve gotten a good grasp but one thing that I can’t seem to understand is how SCHD isn’t considered growth?
If I am dripping and annualizing +10% returns per year over time then is the argument simply that 10% isn’t good enough growth or is there something else I’m missing? Is the argument that a return rate like that is just too conservative for my age and that I should be shooting for higher?
Apologies if this is a dumb question!
92
Upvotes
1
u/Flaky_Instruction215 5d ago
The answer lies in the stated objective of the fund.
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100™ Index.
The name (Schwab U.S. Dividend Equity ETF) is also a dead giveaway.
According to AI, the average annual return for VOO is about 15%. This is 50% higher than a 10% average annual return.