Congrats to Mr. Spacely and Jigsaw 2045 for having their ETFs chosen in this ETF Battles matchup. To claim your ETF Battles shirt or coffee mug, please send us your S&H details here: www.etfguide.com/contact-us
Not much of a battle. SCHD is a dividend play with capital appreciation whereas JEPI and XYLD are covered call (regular income) plays with minimal, if any, capital appreciation. But still, an education for those wondering whether to get a little income now and more later (SCHD) or get it all now and none later (JEPI & XYLD).
SCHD also has a great dividend growth rate. SA has the five year DGR at 12.32 percent. That's impressive. I have had it in my portfolio for about three years now. I'm very happy with it. The flowers looked nice Jessica.
Long term we actually like XYLD, because we always reinvest the dividends monthly. This compounds the nearly 1% a month into 15% yearly. This will turn into monthly income for retirement eventually. >>> Plus we also own SCHD now, since we saw this well done video. Thank you.
Also their downside analysis was lacking. If you look at the numbers for all 3, the one with the best capital retention in a downswing are the Global X covered call strats. JEPI does pretty well, but its upside exposure provides more downside exposure compared to XYLD, and SCHD's downside protection basically doesn't exist compared to the rest of the market once you consider the dividend-focused portfolio behind SCHD. If you invested $1000 in all of these on September 1st, return on SCHD would have significantly lagged the others because of the significant exposure. The reason for this is pretty straightforward: Covered call strategies reduce cost basis and gain value on high volatility, bearish trends as long as the fund has volatile upswings to sell against which is pretty normal. In other words, while a direct exposure ETF might lose overall value linearly as stocks lose value, CC ETFs can actually buffer losses through the CC strategy. In practice, the Global X downside protection can run up to about 50% the regular market if conditions are just right. I think the problem exposed here is that when you take an ideal bullrun pattern, like August 2020 through December 2021, where the overall market is almost entirely in a bullish trading pattern above the 50 day SMMA, you're obviously going to see exposed growth exposure take the lead, but when it comes to riding out volatile sideways or bearish patterns, the risks and returns change dramatically... and this also exposes one of the problems with comparing predictable income ETFs with ETFs that have more of a growth component.
Xyld 10 year return (dividend reinvested) is 7.4%, while SCHD is 13.1%, how is XYLD better? How much money you have lost if you have invested the same amount of money in SCHD?
VNQ wins easily. SCHH is okay for REIT ETFs, but VNQ is significantly better based on performance and volume. SCHH only has a lower expense ratio as it's advantage. XLRE and FREL are better than both. FREL has an expense ratio of 0.08% and same performance as VNQ. XLRE far outperforms all REIT ETFs.
Love these videos great job. This matchup really wasn’t apples to apples. Covered call strategies compared to a growth and income etf. I think there’s a place for both strategies in one’s portfolio.
TT: I think you have something here. But our 0:30 second shot clock would probably need to be extended to 1 hour. The sheer insanity of your request has brought me unexpected joy, because I have the same type of audacious mind. Warm regards, Ron
Would love ti see a war of the ETF Gargantuans for retirees looking for high dividends, not so concerned about growth. How about Carl Icahns 14.78 ETF- IEP, RYLD and of course QYLD!
Excellent analysis. Thanks for giving us your thoughts on these 3 strategies. I'm a first time listener. I would love to hear what your panelists think now, a difficult year later. Most especially, I would love to hear what strategy they would be in favor of in a range bound market. I'm guessing that XYLD would be the winner.
Hi Tom, Not sure what our ETF Battles analysts would say...but for a range bound market, something like BTAL may deserve a look. It's not a dividend income pure play, but it's got an interesting strategy. Thanks for watching the show! Ron www.agf.com/us/products/btal/index.jsp
Good one, Ron. It doesn't get much better than SCHD. What a blockbuster ETF! Have a happy holiday and tell Warren to take it easy on the eggnog this year.
Newbie here, I was looking at SCHD to add to my new retail account in January. Is it best to hold SCHD ( or any dividend etf) in a ROTH over a regular investment account?
Holding SCHD inside a Roth is definitely more tax friendly vs. a taxable brokerage account. But this isn't necessarily a question of ONE type of account over the other, because both the Roth IRA and a taxable brokerage account can complement each other inside an investor's overall plan. Best, Ron
Sonder, while rare, our show will sometimes get interrupted with unexpected phone calls. And so long as those calls ARE NOT from telemarketers, we're glad to answer. You never know who'll be on the other line! Warm regards, Ron
You should be investing in small caps for capital appreciation. And if you beat inflation, which over long periods has proven to be the case, we can enjoy a $7 latte together without wincing. Best, Ron
Shmulik: Your point pre-supposes that people are holding these ETFs inside taxable accounts. Are they? We both know that some are and that some are not. For those who hold these ETFs inside a tax-deferred account (traditional IRA, SEP IRA, Simple IRA, 403b, 457, 401k) or tax-free account (Roth IRA, Roth 401k) it's not an issue of concern. As you know, any discussion of taxes takes more time than the 10-15 minutes per episode we have to properly address. BTW, I'm working on a new program that will soon be launched that gets super granular into the topic of taxes and proper asset positioning. Stay tuned, I think you'll like it. Warm regards, Ron
The forward consideration of market needs to be considered....the next few years could mean lower returns...the past is no guarantee fo future performance....we had a great run and so did SCHD ... SCHD would have been a fantastic buy in March 2019 ...
Good point Richard. Investing great John Bogle once quipped "the past is not prologue." That said, it's reasonable to still focus on total return vs. a one-dimensional viewpoint of ETFs with "highest yield." Thanks for dropping by! Ron
Wow, I totally disagree. The battle is which dividend income is better, not which dividend growth is better. INCOME. 3% loses to 7%. What a waste of my time.
Jon: It's OK to disagree with our ETF Battles outcomes. The main thing is that we reinforce the idea that whatever investment decisions you're making - they are deliberate and by design vs. accidental. Take care, Ron
I just did the math and just looking at XYLD versus SCHD, a person buying both on January 13th would have lost 6% per dollar spent on SCHD since then whereas a person investing in XYLD would have lost 5%... but that's not accounting for the 1% dividend at the start of February so the actual XYLD loss would be 4%. SCHD is losing the January blip by 2%.
When an unexpected phone call happens on ETF Battles, I've learned that it's best practice to answer the call. You just never know who'll be on the other line. Thanks for watching. Ron
![Kodak Black - Catch Fire [Official Music Video]](http://i.ytimg.com/vi/A4ch-olIuZo/mqdefault.jpg)
SCHD is definitely one of the best overall ETF.
Agreed. It's served me very well the past 7 years
Congrats to Mr. Spacely and Jigsaw 2045 for having their ETFs chosen in this ETF Battles matchup. To claim your ETF Battles shirt or coffee mug, please send us your S&H details here: www.etfguide.com/contact-us
Hi Ron, thanks for doing my battle! I just submitted the form.
Not much of a battle. SCHD is a dividend play with capital appreciation whereas JEPI and XYLD are covered call (regular income) plays with minimal, if any, capital appreciation. But still, an education for those wondering whether to get a little income now and more later (SCHD) or get it all now and none later (JEPI & XYLD).
Appreciate your kind words Ciborium and thanks for watching! Ron
I think JEPI claims that it will have capital appreciation. NUSI however doesn't.
This comment is actually 🔥
SCHD also has a great dividend growth rate. SA has the five year DGR at 12.32 percent. That's impressive. I have had it in my portfolio for about three years now. I'm very happy with it. The flowers looked nice Jessica.
Good stuff! Thanks for the additional stats Super Steve. Take care, Ron
I’d love to see a battle of momentum ETFs. MTUM vs MTMM, JMOM, or VFMO
TB: Looks like an interesting ETF Battle quadruple header. Thank you! Ron
Another awesome ETF battle ! Ron I would like to see SCHG vs QQQ vs VOOG.
LG29: Glad you enjoyed this matchup. And your battle suggestion has been duly noted! Take care, Ron
Long term we actually like XYLD, because we always reinvest the dividends monthly. This compounds the nearly 1% a month into 15% yearly. This will turn into monthly income for retirement eventually. >>> Plus we also own SCHD now, since we saw this well done video. Thank you.
Also their downside analysis was lacking. If you look at the numbers for all 3, the one with the best capital retention in a downswing are the Global X covered call strats. JEPI does pretty well, but its upside exposure provides more downside exposure compared to XYLD, and SCHD's downside protection basically doesn't exist compared to the rest of the market once you consider the dividend-focused portfolio behind SCHD. If you invested $1000 in all of these on September 1st, return on SCHD would have significantly lagged the others because of the significant exposure.
The reason for this is pretty straightforward: Covered call strategies reduce cost basis and gain value on high volatility, bearish trends as long as the fund has volatile upswings to sell against which is pretty normal. In other words, while a direct exposure ETF might lose overall value linearly as stocks lose value, CC ETFs can actually buffer losses through the CC strategy. In practice, the Global X downside protection can run up to about 50% the regular market if conditions are just right.
I think the problem exposed here is that when you take an ideal bullrun pattern, like August 2020 through December 2021, where the overall market is almost entirely in a bullish trading pattern above the 50 day SMMA, you're obviously going to see exposed growth exposure take the lead, but when it comes to riding out volatile sideways or bearish patterns, the risks and returns change dramatically... and this also exposes one of the problems with comparing predictable income ETFs with ETFs that have more of a growth component.
who's we?
Xyld 10 year return (dividend reinvested) is 7.4%, while SCHD is 13.1%, how is XYLD better? How much money you have lost if you have invested the same amount of money in SCHD?
I love to see a battle VNQ and
Charles Schwab US REIT ETF
VNQ wins easily. SCHH is okay for REIT ETFs, but VNQ is significantly better based on performance and volume. SCHH only has a lower expense ratio as it's advantage.
XLRE and FREL are better than both. FREL has an expense ratio of 0.08% and same performance as VNQ. XLRE far outperforms all REIT ETFs.
How about DIVO vs. JEPI vs. NUSI?
Looks like an outstanding dividend triple-header. Love it. Thank you eco! Ron
Love these videos great job. This matchup really wasn’t apples to apples. Covered call strategies compared to a growth and income etf. I think there’s a place for both strategies in one’s portfolio.
I own both SCHD and JEPI. Happy with both
My xyld is outperforming both my jepi and schd
Would love to see a 4 ETF dividend portfolio matchup, say Quad-Fecta (NUSI, QYLD, JEPI, DIVO) vs another (HNDL, RYLD, XYLD, SCHD).
TT: I think you have something here. But our 0:30 second shot clock would probably need to be extended to 1 hour. The sheer insanity of your request has brought me unexpected joy, because I have the same type of audacious mind. Warm regards, Ron
Great battle! SCHD for dividend growth. The others for fixed income after passing the $1 million dollar mark.
Not a bad strategy Mr. Berry. Best, Ron
Thanks for that just been looking at investing in SCHD so was very worthwhile.
Glad it was helpful! Best, Ron
Would love ti see a war of the ETF Gargantuans for retirees looking for high dividends, not so concerned about growth. How about Carl Icahns 14.78 ETF- IEP, RYLD and of course QYLD!
can we have YYY VS JEPI VS PFFA
Excellent analysis.
Thanks for giving us your thoughts on these 3 strategies. I'm a first time listener.
I would love to hear what your panelists think now, a difficult year later. Most especially, I would love to hear what strategy they would be in favor of in a range bound market. I'm guessing that XYLD would be the winner.
Hi Tom, Not sure what our ETF Battles analysts would say...but for a range bound market, something like BTAL may deserve a look. It's not a dividend income pure play, but it's got an interesting strategy. Thanks for watching the show! Ron www.agf.com/us/products/btal/index.jsp
Good one, Ron. It doesn't get much better than SCHD. What a blockbuster ETF! Have a happy holiday and tell Warren to take it easy on the eggnog this year.
Dave: OK, I'll relay your message to Warren. LOL! Stay safe and see you soon. Warm regards, Ron
Thank you !
Newbie here, I was looking at SCHD to add to my new retail account in January. Is it best to hold SCHD ( or any dividend etf) in a ROTH over a regular investment account?
Holding SCHD inside a Roth is definitely more tax friendly vs. a taxable brokerage account. But this isn't necessarily a question of ONE type of account over the other, because both the Roth IRA and a taxable brokerage account can complement each other inside an investor's overall plan. Best, Ron
Really the dividend is small so the Taxable account is ok. This will have more capital gains then dividends, so a ROTH is lots better.
Who doesn't like dividends Ron lol. Great ETF battle! SCHD is my winner as well. Enjoyed watching 👍
John: "Pay me now, not later," said dividend investors. That's an official quote. Good to see you again friend, RD
How about JEPI vrs JEPQ vs DIVO? All great ETFS and actually have capitol appreciation without dripping back in, which is hard to find!
Can you cover XYLG QYLG
Excellent analysis
Thanks Paul for watching ETF Battles! Ron
I have SCHD in my taxable
I have SCHD it's performing well
Glad to see you're doing well. Thank you Ace for dropping by to watch #ETFBattles! Take care, Ron
Love the new intro!
Sonder, while rare, our show will sometimes get interrupted with unexpected phone calls. And so long as those calls ARE NOT from telemarketers, we're glad to answer. You never know who'll be on the other line! Warm regards, Ron
Hi Ron, will small cap blend ETF's prosper with high inflation? S&P Small Cap 600?
You should be investing in small caps for capital appreciation. And if you beat inflation, which over long periods has proven to be the case, we can enjoy a $7 latte together without wincing. Best, Ron
SCHD vs SPY vs RSP
Thank you Drew, this looks like a big league matchup of very different large cap focused ETFs. Take care, Ron
I think both (and the moderator) missed an important aspect of the battle which is tax implications, especially viz-a-vis return of capital.
Shmulik: Your point pre-supposes that people are holding these ETFs inside taxable accounts. Are they? We both know that some are and that some are not. For those who hold these ETFs inside a tax-deferred account (traditional IRA, SEP IRA, Simple IRA, 403b, 457, 401k) or tax-free account (Roth IRA, Roth 401k) it's not an issue of concern.
As you know, any discussion of taxes takes more time than the 10-15 minutes per episode we have to properly address.
BTW, I'm working on a new program that will soon be launched that gets super granular into the topic of taxes and proper asset positioning. Stay tuned, I think you'll like it. Warm regards, Ron
Thanks Ron. I'll look forward.
Can we have some Canadian ETFs for your Canadian viewers?
Right now our focus is the U.S. because it's the largest global ETF marketplace. But stay tuned, we may shock you with the unexpected. Best, Ron
The forward consideration of market needs to be considered....the next few years could mean lower returns...the past is no guarantee fo future performance....we had a great run and so did SCHD ... SCHD would have been a fantastic buy in March 2019 ...
Good point Richard. Investing great John Bogle once quipped "the past is not prologue." That said, it's reasonable to still focus on total return vs. a one-dimensional viewpoint of ETFs with "highest yield." Thanks for dropping by! Ron
Wow, I totally disagree. The battle is which dividend income is better, not which dividend growth is better. INCOME. 3% loses to 7%. What a waste of my time.
Jon: It's OK to disagree with our ETF Battles outcomes. The main thing is that we reinforce the idea that whatever investment decisions you're making - they are deliberate and by design vs. accidental. Take care, Ron
SCHD is the winner...its not even worth having a discussion..WTF?
Hank: Can you please tell us how you really feel? Make your arguments of why SCHD is the winner, don't just preach to us. Ron
With this current Jan blip, SCHD has been the clear winner.
I just did the math and just looking at XYLD versus SCHD, a person buying both on January 13th would have lost 6% per dollar spent on SCHD since then whereas a person investing in XYLD would have lost 5%... but that's not accounting for the 1% dividend at the start of February so the actual XYLD loss would be 4%.
SCHD is losing the January blip by 2%.
Lol
When an unexpected phone call happens on ETF Battles, I've learned that it's best practice to answer the call. You just never know who'll be on the other line. Thanks for watching. Ron