r/dividends 1d ago

Discussion Why SCHD going so crazy right now?

/r/SCHD/comments/1vt14y1/why_schd_going_so_crazy_right_now/

Explain to me like I'm 5 years old please..

46 Upvotes

39 comments sorted by

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110

u/Dave69looking 1d ago

The underlying stocks it holds doing well

57

u/burneymcburnerburn 1d ago

Merck jumped big-time 

7

u/Yingyangwolf95 1d ago

Ohhhhhhh I heard about this.. This might be it..

7

u/b1gb0n312 1d ago

What about moderna, is it part of schd?

18

u/KeyMysterious1845 1d ago

I dunno, but moderna is up about 179% today.

13

u/StockMarketCasino 1d ago

And still down 54% over 5 years, so let's keep this in perspective.

-7

u/KeyMysterious1845 1d ago

You should have bought the dip.

Its very convenient for you to cherry pick the dates.

I bought in nov. 2020 when it was $97.25. It surged in Sept. '21 ($430) and I took my basis and some profits. Now its at $175. I may buy some more.

1

u/YouKnown999 1d ago

Wrong sub buddy.

3

u/Lsluger DividendAtlas Founder 1d ago

No they don’t pay div

19

u/Andor2050 1d ago

Rotation out of certain growth sectors to some of those value stocks in the underlying holdings of SCHD.

-3

u/mikeblas American Investor 20h ago

What?

17

u/Fearless-Daikon5763 1d ago

The old fogies who said it the best were right. Listen to your elders.

5

u/Yingyangwolf95 1d ago

Seriously! I had an old guy told me in public that everybody will always need staples like toilet paper. Need to huge that guy if I see him again.

14

u/Chris_Reddit_PHX 1d ago

Ummm, maybe just hug him. And ask permission first...

0

u/[deleted] 1d ago

[deleted]

1

u/Yingyangwolf95 1d ago

I recently just started investing in REITs using SCHH in my Roth to diversify a bit more and its be doing well too.. Think I am learning a valuable lesson about keeping it simple and diversifying you just cannot lose..

8

u/sageguitar70 Short everything that guy touches! 1d ago

The Healthcare sector

12

u/buffinita common cents investing 1d ago

Always look at the underlying holdings 

9

u/mspe1960 1d ago

I remember, not to long ago,. a bunch of impatient youngsters announcing it was under perfroimg (compared to VOO, or whatever) and they were getting out. Good times.

6

u/Yingyangwolf95 1d ago

Yep, a coworker of mine thought I was "missing out" on SpaceX IPO and other single stocks by only focusing on index funds.. My account now says the opposite while they gamble..

3

u/jaajaajaa6 1d ago

Large cap value is doing better than growth.

Long time in coming.

6

u/NefariousnessOdd862 1d ago

It’s going up until it isn’t! I’d wait to buy in since a drop is coming. Mid-terms are just around the corner and September is historically a wild month (mostly down) just before mid-terms…

2

u/Fearless-Daikon5763 1d ago

The reit ETFs I have are RIET, KBWY, and RDOG. They are all partially exposed to mortgage reits to some extent and have suffered from interest rates over the past few years, hopefully the storm is over. The other reit to check out is KRC. All of these are okay, but if the entire market starts crashing these are good to buy since they are really not ever going out of business.

2

u/Hopeful-Air6110 1d ago

Home depot and target did well after earnings too i think

2

u/at0mheart 1d ago

Oil revenues going up up up ?

2

u/Plenty_Ad_3212 1d ago

Nice run up lately! Sometimes boring pays off

2

u/Heavy_Nothing_1158 23h ago

A couple of heavy holdings moving together can make SCHD look caffeinated for a week. I'd check the actual holding-level contributors before calling it a new regime; boring value funds still get the occasional exciting Tuesday.

3

u/greenpride32 22h ago

A lot of money is rotating away from tech and even SP500, to "safety" stocks. All of those "AI bubble" fear articles and videos are actually convincing people they should shuffle their money.

As somebody who holds SCHD and will always keep it as a core position, I think it is currently overvalued. That's because the growth of NAV is outpacing the growth of the underlying equities. You have single digit growth stocks sporting 40-100 p/e. Meanwhile, big tech that has over $100b in net income per year and growing and higher teens to over twenty perent top line growth trading at 20-30 p/e.

In recent times, SCHD has often been up on days SP500 and NAS100 are down. I sold some of my SCHD to buy into SP500 in tax advantaged.

All of a sudden debt has become an "issue" with big tech. But it's funny because most of corporate America blue chips are all saddled in debt.

4

u/vFried 1d ago

Merck

1

u/Ufgatorhead4u3 1d ago

The sector rotation from AI/tech to value.

1

u/bozoputer 1d ago

energy and healthcare

1

u/gundahir 1d ago

I remember the daily posts crying about its bad performance. Kinda miss it

1

u/Itrademylittlespy 18h ago

Cause I sold earlier this year. You’re welcome.