BREAKING: SCHD ETF SHARE SPLIT (massive price drop for SCHD and SCHG)
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- Опубликовано: 27 сен 2024
- Charles Schwab just announced a stock split for 20 ETFs. SCHD and SCHG will be much lower in price starting in October 2024. ETF Split Schwab for etf investing long term net worth wealth building!
#schd #schg #etfinvesting
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Wow. Never knew ETFs could do this
Yup! Big news!
Same
Lol do you really think TQQQ was trading at 40 cents on inception?
SCHG split in 2022. I have 4 of the 20 now.
@@NolanGouveiabut you reported wrong about Vanguard ETFs! You can buy partial shares of their ETFs because I do it every month! You compared the high price of VOO as a negative compared to the split of SCHG!
Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts with experience since the 08' crash.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well.
NICOLE ANASTASIA PLUMLEE' is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
$85 isn't that high, don't understand why they are splitting.
I agree with you
@@analysis1957 probably just to try to get more money in for the overall company if I had to guess. But with being able to buy partial shares not necessary but still there are thousands of people who have no read idea how the whole system works.
I used to invest with TD bank before Charles Schwab took over. I don’t like their service and I don’t trust their decisions. I think they’re just making some show off 😂
i guess its because charles schwab brokerage doesn’t offer fractional shares and they want more people to buy their etf on their platform so splitting
Clous thinks a recession is coming. Maybe.
If you want to attract new, young investors, $85 can be a lot for some. This split makes sense if they are trying to attract younger investors. Interesting how this happened not long after the rate cut. I think Schwab is ahead of the game here, trying to attractive some of the Billions of dollars of capital currently sitting in money markets that will be coming back in to the market over the next year as rates come down.
Vanguard should do this with their ETFs, VOO is 500+ already
yes, also SXR8 and SXRV
What’s stopping you from buying fractions of those ETF’s?
They go.
Do SPLG instead at around 67. Also has cheaper expense ratio at 0.002%.
@@MartinD9999very very very very very little room for growth it’s already sitting 500
I randomly have 333 shares which will become 1,000 so that's cool. I actually like the split for daily buys.
Thank you Professor G! I hope vanguard will do split next so I can get more VOO, VGT, VTI.
VGT
Why can’t you just get them now?
They’ll be fractional but you’ll still have them.
There’s no benefit, it’s still the same overall value.
But this is a tactic used as psychological manipulation towards investors, so it seems that’s the whole point.
Just buy fractional shares now. Its the same value.
Thank you for getting this information to us so quickly and for explaining it so thoroughly! This is exciting news and I am excited for the new lower prices. 👍🏻
You are so welcome!
This SCHD news almost made me S H I T myself.
Depends.
you mean SCHIT?
@@DrMediterranean haha. They should make an ETF made of speculative penny stocks called SCHIT
@micaht4718
😂
😑
They will also reduce the dividend rate in accordance to the split so .75 would be .25 a share.
I was wondering, thank u 😊
^^ That is correct. New dividend will be .25 a share.
BUY MMOOOOORRRRRRREE!!!!! Over 1,000 shares of SCHD but not enough (yet) of SCHG :(
@@Shootsmith damn, and I thought my amount giving me 1 new share per dividend was ballin.
Same here! Just started two months ago with SCHG-51 so far. Might have to up investments🤔
So since I have 3033 shares now.. I'll end up with over 9000 shares... 😮 Long term this looks nice to me.
Wooooow that’s awesome!
Maybe change the title to stock split your going to have people thinking the stock is going to crash lol You still have the same value just more shares
it's called clickbait.
He took down the comment with the most upvotes and a ton of people replying on it about their dislike of this clickbait fear mongering title.
All credibility out the window. As a content creator you should be ashamed in your grimy ways.
@@Lotek9 Come on man, all credibility? The 3 etf strategy is legend.
@@Lotek9All click bait does is get people to click the video. It's almost necessary in order to get views now as a RUclipsr....as long as the video is solid and gives good advice I don't see an issue
@@death.for.breakfast he deleted about a 20 comment thread that was eviscerating his fear mongering tactic. That's what I'm calling him out for. Not the misleading clickbait.
Professor G, you saved me from a future heart attack on October 11.
Thanks for the video.
Currently sitting on 7500 shares of SCHD and 1500 of SCHG!
Schd is 3 for 1 schg is 4 for 1
You should get a chair.
5188 SCHD and 2173 SCHG currently, so I'm pretty happy.
Wow
cap
This will help those that like selling covered calls and selling put options on these ETFs…they will need to front less shares or cash value up front to collect premium…interesting 🤔
Professor G is one of the few RUclipsrs that tells it how it is without overselling his own personal finance agenda, and like a true professor, takes a didactic approach to educate in his videos. He updated the title of this video title and as a courtesy people could just cut him some slack.
Thank you 💪 I appreciate you
Instead of owning a gallon you own 4 quarts now.
@aliasname602 So there is no benefit if you bought it before or after the split? It's not going to change the stocks SCHD holds.
@@tonyherdina9142 When a stock is process of being split. There is speculation on the perception of value before and after the split. Will people pay more or less for 4 quarts versus a gallon? And the trading based on speculation may move the price around. SCHD is an etf with 103 holdings, and each stock is already being traded based on a number of factors,: earnings, consumer data, interest rates etc. I believe the SCHD split will be extremely faint and inconsequential background noise. SCHD is a long term hold, not something to be traded in the short term based on stock splits.
@@tonyherdina9142Exactly. It’s like cutting a pie into more pieces. But if you hold say 25% of the pie you’ll still own 25% just in smaller units stilling coming out to 25%. Hypothetical of course. But hope that makes sense. Makes things more affordable if people buy in whole shares, etc.
They will never brainwash me into the metric system!
@@tonyherdina9142there is no difference except a) there will be three times as many shares out, b) dividends will be divided by 3.
Anyone concerned about todays drop in SCHD price needs to understand it was ex-div date. So each share dropped by the dividend amount plus the market price drop for the day. Remember, dividends are not free, they come out of share price.
So.much for SCHD hitting $100 and never looking back. :)
May still get there!
More like hitting $40 and never looking back 😂
Thanks for explaining this. I have SCHD as part of my three bucket portfolio, along with VOO and QQQ and was a little nervous with today’s SCHD drop. I’m in it for the long haul and will leave my portfolio alone.
Great to know from you on time. Are there any bond ETF recommended in Schwab’s split this time, or other good bonds ETF? Thank you!
What about the dividend? If they pay per share and I went from having 20 shares to 40 shares will the dividend be split in half?
I love your videos because you have a way of explaining complex concepts in way that’s easy to understand.
Glad you like them!
I’m excited for the SCHD split. I wish VOO would split! Thanks for the video and great info!
on the beginner level, it's worth mentioning that the dividends per share will also drop correspondingly. But, as you'll now have more shares, the total dividends should be equal to the pre-split amount +/-
great points yes!
The dividend payouts seems to happen first. With the ex div date today and pay out by 9/30. The stock split "ex split" date is 10/9 and split on 10/3 (3 for 1).
@@NolanGouveia Yes, this was my question how is the dividend split handled? Will they take the most recent dividend and split 3 ways?
@@ncalcamper that dividend will already have been paid out so the next dividend announced will be 1/3 the size
I respect you for changing the title, I can finally put down my pitchfork 😂. But seriously, good move and good information professor, you’re a real one 🤝
😂
Had me all weak in the knees with the title🙂↔️
Stop playin😂😂😂
hahaha
Good video, but clickbait thumbnail smh
👍
I love that they’re doing this. I was complaining about how bad I wanted SCHD but paying 80some dollars was too steep for me.
Hi. It depends on what company/platform you're using. I use Fidelity and it allows fractional share purchases and automatic investments with even amount purchases (i.e., set up automatic investments of $50 to purchase $20 of VOO, $20 of SCHD, and $10 of QQQM or whatever proportion you want on monthly, weekly, or twice a week schedule).
darkskinamerican7826
Why can’t you just get fractional shares? Why do you need an entire share?
But now with dilution you still need 2 shares to equal today’s value. Nothing changes the price will remain the same. You effectively can buy half a share at a time now.
I couldve used this video when this was done with Nvidia. My coworker kept telling to buy buy buy at that time and it didnt make sense to me. I kept thinking the value would be decreased with a split. ....and thoughts of AMC came to mind which totally burned me. Obviously i am not educated in this arena and im starting to do more research before i invest my hard earned money into anything these days. I also get FOMO, but i still freeze up and wont buy. Research takes time with work, kids, marriage and a household. Idk.. .....just feel like an idiot these days
Did ur co-worker suggest u buy before the split or after?
@Kay-jk2gi he told me to buy for that 10 for 1 deal 4 months ago. Something like that. He said get $1000 and buy. I was nervous and that was the only cash savings I had, so I didn't want to risk it. I still don't. I'm currently researching, reading, etc,. And our goal is to pay off all our credit cards and have 3 months emergency fund and then we can begin investing. But I am grateful to have a 401k with my job with a 3% match, so I do have "something" for the future.
Being an ETF this will do far less to the share price than even the tiny amount a company split affects those shares.
An ETF price is all based on the underlying assets. A split and money pouring in won't change that to any significance because the prices of the underlying assets won't be affected by the (relatively) tiny new investments at the time of the split.
My first stock to hit over 100 shares. Which means now I can sell covered calls.
I'm trying to get into this myself
@@gerardmichael8523 yeah, consistency helps. I got too caught up in the number of companies I owned instead of building significant positions.
You better know what you’re doing.
You should have been learning CC on cheap stocks first. Like the $5 - $10 stocks instead of the $80 stocks.
it is obvious that you dont have any experience in covered calls. Schwab ETFs have little to none option volume. Even Vanguard which has 10x the AUM dont have any option volume. They dont even have weekly contracts... Where SPY & QQQ you can sell options DAILY...
@@MiddleClassAmerican you sound like a genius. Maybe you should start a RUclips channel. That way you can tell everyone how wrong they are 🤷♂️. Maybe you can tell me where to get 20 to 40k so I can afford 100 shares of SPY and QQQ while you’re at it.
Schwab likes to keep their ETFs below a $100 bucks for some reason, i was wondering when they would finally pull the trigger on these ETFs splits. I guess it's to keep them affordable to those that use brokerages that don't offer fractional shares purchases, nevertheless expect a split whenever any of their ETF gets near or above a $100 shekels.
Yes. Schwab doesn't offer fractional shares for all their ETFs, so maybe thats why they do this.
Mr G, you’re the man! Appreciate your clear communication and genuine advice. Shoutout from Canada!
Not really sure this will make a difference. $80 is not a high share price, and with fractional shares, it doesn't make buying shares easier. Yes, there may be a few people don't understnd that, but there are just as many people lacking investing knowledge that will see the share price at $30, who think it's less valuable than a $50 ETF.
Will it be super super solid after the split? What will the dividends be? Same? More? Less? This will benefit the person that already has shares of these Stocks. Unless, a person like me that doesn’t have any of these stocks, waits a few days after the stock split and hoping it drops a few dollars a share.
What happens to the dividend amounts? Do they reduce like the share price or do they stay at current levels?
They will split with the share. So if the dividend is 75 cents and it splits 10-1 then the dividend will be 7.5 cents per share.
Percentage will be the same.
Wait.. those are 2 separate events. Dividends will happen on 9/30. Stick split on 10/10. I believe the dividends payout will cause the stock to lower first then the price will rebound within those 10 days and not sure if the stock split will drive up or drive down the stock before the split.
Let’s do a pole for people that don’t have Schd. Would you buy before the split to get the extra shares or wait until it splits and buy the shares at a cheaper price?
@@garyschmelzerI ll buy before and after.
Some don’t realize how this makes generational wealth possible. Think back to all this people who invested in McDonalds in the 70’s or 80’s. Held through many splits and the price gets higher. They are now millionaires. If you are truly a long-term investor, splits can be your BFF🥰🥰
This is different… stock splits and getting in early on an ipo isn’t the same.
Let’s gooooo
How come VOO does not do like 10 for 1 splt to make it.More affordable?
Good question.
@@backspace4353they may
Because you can buy fractional shares. So it doesn’t matter what it costs for a single share. Thats why.
@@MartinD9999by that logic there was no need to split SCHD.I brokerage does not support fractional shares BTW. Not all do.
Voo to pricey go with SPLG
I own SCHD shares and want to buyer more shares. Should I buy now or wait until after the split? Thanks for the info.
I'd like to know the best strategy for this too
Can't wait, pumped for the SCHG split.
I would be jumping with joy if SPY did 5 - 1 split and QQQ 4- 1 split... imagine all the covered call options i can sell daily...
I was looking for a dip in the market to jump into SCHD and SCHG. No better time than now!!
Can U buy this if I have a Vanguard account?
@@ClaudiaschloeterYes you can but it would have to be in whole shares. Vanguard only allows fractional investing on their ETFs, etc.
Question, for all of you SCHD and SCHG lovers. Those who invest in both but have more SCHD than G...can you explain your reasons why? Im no expert when it comes to investing but doesnt SCHG growth etf have a higher ROI compared to SCHD even with the dividends? I understand why someone at or near retirement age would rathee not have so much in the riskier SCHG but for those who have 20+ yrs or more from retirement 🤔
I'm super excited! I want to sell puts on this and this makes it easier.
Im also glad that I can buy back in faster because my stupid employee stock option broker (E-Trade) doesnt allow fractional share trading.
Yup , you're right. I transposed those letters. I hold SWPPX. SPLG expense ratio is slightly higher but my research points to SWPPX as a clear favorite. I think one of the advantages of an S&P 500 ETF is that it trades like a stock and doesn't trade once a day like a mutual fund? Thoughts ?
Hey Professor G,
Since you strongly recommend SCHD and I am considering it to be part of my portfolio plan, would you still suggest this as a good investment for those residing overseas? This means that we have to pay double the tax, US (15%) and our current country base Thailand (30%). Do you think the tax payment is worth it?
If not, what other low risk, profitable ETF do you recommend? Dividend vs other kind?
Pretty cool. Had that happen years ago with 2 fidelity plan old mutual funds. Same price but it’s kinda nice to see your shares split and get more makes you feel more rich but no real dollar change. Good for the moral.
Agreed!
Is there any reason for hardcore Vanguard fanboys like me to choose SCHD, SCHG over VYM, VUG? The low price offered by Schwab does not cut for me. I got $50k sitting in money market ready to be deployed hence I am game for Vanguard high dollar ETFs. Appreciate your advice Professor G
I've gone through many stock splits. Unfortunately, a handful of them are reverse splits. I like these forward splits much better. This will leave me with over 5000 shares of SCHD and over 3500 shares of SCHG.
I’m going to purchase SCHD tomorrow 😊
You should go for schg. That is a 4 for 1.
@@kito1sanwhat do you mean 4 for 1
4 shares for the price of 1?
@kito1san
😂 What difference does it make? It’s still the same overall value. Having 4 shares instead of 1 doesn’t change anything. They’re worth the same.
There’s no advantage.
What do you think about leverage etfs? I was thinking about adding SPUU to my portfolio dollar cost averaging (SPY 2X daily etf)
Your content is great for those living or able to buy ETF's registered in the US. Unfortunately, those of us in the UK can't. It would be amazing if you made some content on how to find a similar ETF in the UK or Europe to SCHD, VOO or any other ETF you talk about.
Isn’t it pretty normal for stocks to pump before split but then tank after ? TSLA did this last split… NVDI didn’t but a different beast. Is this news different for etfs ? With wealth simple you can fractional buy so it doesn’t affect me and I’m sure many others …
Stocks are at an all time high. Good time to cash out some and switch to what? Please do a video about where we can move these All-Time-High ETF's into something less risky for the upcoming bear cycle. Are Bonds or Treasuries the safer spot to park investments?
Awesome! Thank you for sharing. I like the idea of having more shares. My only question would be how would that impact GTC orders ready to trigger on the dip. Full disclosure, I already canceled my orders thinking it is better to buy after the split and the price action settles.
I’m glad you explained why companies do stock splits, I was wondering why they would do it since it’s basically like getting 4 $5 bills for a $20.
Stock prices seem low for a split.
I actually agree and thought the same
Long term investing, buying, holding, and enduring several stock splits enabled my friend to acquire over 25k shares of AAPL.
Question: what will happen to those who buy stock at current price on October 10th, if the stock split considers stock owned until Oct 9 but new price will start on Oct 11?
Still don't get why they do it but I'm wondering if it is better to buy now at $85 or wait and buy later at $27? Since I'm buying with $ what's the advantage?
I don’t know if you mentioned this in the video but the dividends drop per share as well so if dividend was $3/share be4 split 1:3 it would be $1 after.
Do you know if the increase in shares also applies to fractional shares? Or should we make sure to have a whole number of shares before October 9th
Makes sense since Schwab does not do fractional shares so this makes it easier to invest in their ETF’s on their platform… or can just use their mutual funds.
anyone have views on whether one should have aa joint taxable account or just simply invest into etf's? are there any benefits in choosing one over the other?
Question Professor G question I bought SCHD today at $84.11 I believe when they do the split will my average cost still stay at $84.11or will it recalculate to whatever the new price per share will be
It will recalculate to whatever the new price per share will be whenever the split occurs.
@@JoseFernandez-sl2ek thank you sir
Stock split will definitely bring in new investors hence will raise its value. This puts a big smile on my face 👍🏼
Thank you for clearing this up (: I was confused at what was happening!
any time!
So if you have more shares, the dividend paid per share could double, triple or quadruple too?
Thanks for making this video!!! The news lmost gave me a heart attack 😂
Me too lol
@@NolanGouveia You explained it very well! You have a point on the psychology of the move. Clever move by Charles Schwab..I think this is going to get good promo, hopefully drawing attention (and investors) and increase value while, at the same time, increase affordability.
I feel like 1/3-1/2 of commenters thinks this changes their their actual balance.
VOO is very ripe for the split. Until this news I had no idea that’s a thing for ETFs!
Schd and voo and others lowered the dividend😅😅😅. Oh no. Voo wont split because the goal is for it to reach high price like 5,000 maybe😅😅
Where does it state VOO’s goal is to hit $5k a share?
SCHD did not lower the dividend
So basically the dividend per share will decrease with the stock split as well correct or no?
Question should you stock up now on SCHG or wait for the price drop to buy?
So what your saying is hold and keep buying as the normal. Got it
Wonder if VOO will ever split
@@jimdixon6688 Ya I was wondering that too. A full share of VOO is pretty steep nowadays
One can only hope! Just think what a 5:1 or 10:1 split would do for the price action!
@@robertm348that would be amazing. Been doing some research on VOO VTI and VITSX. The last is cheaper and appears to cover everything that VTI covers and follows the same charts as VOO. Maybe Vanguard will see what's happening and make a decision
The price of SCHD sharply decreased, why is that?
I wish they had better options liquidity.
So ahould I buy more now or wait for the spilt or is it all the same
Informative video, but not really a fan of the clickbait title
Thanks!
Thank you, professor G,
for the keeping us well informed.
What’s going on with SCHY? A good buy?
So should I wait to buy SCHD when it splits?
I wonder if this will trigger Vanguard to do the same with VOO, VUG, VGT, VYM etc.
i totally get Schwabs strategy. Works for me as im in a brokerage that wont let me buy fractional shares in other companies ETFs. Now i got 3000 shares in SCHD. Lol😂
This was a great video thank you
I like this. With more people looking to invest in this, the share price should appreciate nicely.
.02%. You're right
Interesting. I have a little over 250 shares of SCHD.
Usually stocks will see a decent increase in the 12 months after a stock split just because more people have access to buy.
I see mixed things about whether his platform offers fractional shares or not but that could be a big reason for the split I suppose. I just drip and live my life with that position at this point lol.
We will see!
What do you think about this. I have most of my EFT investment on SCHD but I also have some others. I am on a 35%-25%-20%-10%-10% respectively for SCHD-JEPI-VYM-IDV-HDV --> is this solid?
These are good funds yes, solid cash flow and diversified
What about the expense question of owning State Street SPLG versus Schwab SPWXX. Both are S&P 500 funds but one is an ETF the other a mutual fund. Are you considering the expense of each fund ?
Schwab’s is called SWPPX. And both have an expense of .02%
By splitting how will you benefit? SCHD holds all these stocks, it's not going to increase the value of the stocks they hold or ther dividenddistribution. Someone explain what value one would have in purchasing before it splits.
Same as after. No difference
LETS GO SCHD, SCHG!
Ironic lol. Just bought $1500 of SCHD in my HSA like an hour ago.
@skippydmb didn't say I wouldn't lol. Just saying today was the first day I finally bought some and this is what happened.
Lol that's crazy. I just threw $1500 into my Roth IRA
Will the dividend payout stay the same amount as is currently per new share amount?
The dividend will be cut in 1/3 just like the price
i appreciate the update on this. thank you professor g
Any time!
After the SCHD 3-1 split, will the future dividends be reduced by one third?
Correct yes