Lots of people misunderstanding The Professor's stance on dividends. He doesn't hate them, he says you shouldn't chase yields. The fact is total return is the ultimate measure, and super high yield funds simply can't get even close to SPY or VTI on this front.
I just bought SCHD last week before I saw this video. I'm new to investment and feel that dividend ETFs are safer for me to invest. I have learned a lot watching your videos, new subscriber of yours. Thanks
Excellent content and presented at a pace which facilitates understanding the details and insights you offer. I watch most of your videos twice. I’ve gained better perspective on investing and confidence in managing my considerable portfolio.
Thanx Rob. That’s a good look into basic ETF investing. I moving into ETF investing these days. Thanx for the info. I’m new to SCHD but it always gets good reviews.
Rob, I am a VOO accumulator but I do not want to sell my shares, ever. I realize that dividend funds may have a lesser growth and a taxation toll in a taxable account, but still it will generate income and I will never have to sell shares. I appreciate your insight and if possible, make more videos on dividend funds in future. Thanks
Great in depth video. I've been struggling to decide whether to include SCHD in my Roth IRA but this video has made up my mind. Would it be irrational to hold an equal amount of VTI and SCHD? Or would it make more sense to lean more on VTI?
Agree @ not being a fan of dividend tilt. Monthly payments don't matter. Total return matters most, and can be converted to monthly payments. If I wanted to make a factor bet (ie: value comeback), I would do something like 80% total market, 20% small-cap value.
Rob, at 26:00 you express surprise that adding schwab increased performance. I think you have to remember that you didn't just replace the overall stock fund, you also replaced a portion of the international fund, and intl funds have been comparatively dreadful and a drag on every portfolio for far more than a decade, with just a couple a brief blip exceptions. I know you're about diverse investments & being involved across a lot of sectors, understandably so, but I got almost completely out of intl about a year ago after decades of intl being nothing but a drag, and thus far, I have no regrets. Your mileage may vary, past performance, etc. ;-)
I'm treating my portfolio as one giant annuity. Stock market dropping, but my dividends aren't and that is what I'm living on in retirement. Leaving the principle alone, and with a downed market, I've shifted some transfer to bank account back to reinvest so I get more shares.
Diversifying in Value, that's how I found SCHD and why I cont to add to it. Div is a bonus and very welcome in this market. Small cap value also doing great today. Actively managed inexpensive small cap ETF = AVUV. Would love to hear your take on REITs in this environment. Currently holding OLP and Stagg
This is the best video on div ETF! Thank you so much. Could you also compare SCHD and JEPI, if you happen to have some time? I know they work with different strategies, but wondered if I can mix these two ETFs for my cashflow, or just stick to SCHD.
yea i was curious about JEPI too i own a significant amount of SCHD but am curious how JEPI compares especially in regard to taxes since its heavily involved in options contracts..the dividend yield sure sounds attractive though
Is SCHD a US only fund ? If so then my guess is that the reason your three fund plus schd portfolio outperformed a little bit is that you have a lower allocation to the foreign stock fund. Perhaps a more fair comparison would substitute vigi for the 5% you took from the intl fund, or compare to a portfolio with 25% intl instead of 30%.
Hi Rob, thanks for this awesome video. Newbie here, and a subscriber of yours. May i know whats the difference or disadvantage (if any) of getting the S&P500 through TSX only like vanguard's VFV. Am I missing a lot? should I get US$ as well?
Great, thanks. Can you compare international ETFs. They have much lower P/E than American ETFs. If we have rotation to value and international over the next decade they would be winners. VEA, VPL seem to be better than VXUS
Thanks. Do you think for folks with 20+ years until retirement that adding a dividend ETF allocation could replace a bond allocation? 2.5-3% dividend yield and market gain participation with moderate increased risk vs similar bond yielding ETF?
If you still have 20 years until entering retirement, in my opinion you don’t need bonds. As long as you have a steady monthly income from work, and some emergency fund, you shouldn’t need them.
I have made my portfolio of 6 etfs total Schd Vti Vxus Dhs Vnq Jepi Equally divided or so Though there may be some overlap I believe this yields the most dividend returns at just 20k you can bring in 100/mo minus expenses which isn't much if you add expenses Can you possibly try and simulate this on your end and give some feedback?
I would like to know which other dividend funds you do not like (I probably own some). In the video, you said a link would be in the blurb below the video. I have not found it yet. I would be grateful if you would make that info available.
Rob this analysis from two years ago has held up well! Continued success and good health!
Lots of people misunderstanding The Professor's stance on dividends. He doesn't hate them, he says you shouldn't chase yields. The fact is total return is the ultimate measure, and super high yield funds simply can't get even close to SPY or VTI on this front.
I just bought SCHD last week before I saw this video. I'm new to investment and feel that dividend ETFs are safer for me to invest. I have learned a lot watching your videos, new subscriber of yours. Thanks
I also own SCHD and SCHG
Excellent content and presented at a pace which facilitates understanding the details and insights you offer. I watch most of your videos twice. I’ve gained better perspective on investing and confidence in managing my considerable portfolio.
Thanx Rob. That’s a good look into basic ETF investing. I moving into ETF investing these days. Thanx for the info. I’m new to SCHD but it always gets good reviews.
Could you give your opinion of VYM?
Rob, I am a VOO accumulator but I do not want to sell my shares, ever. I realize that dividend funds may have a lesser growth and a taxation toll in a taxable account, but still it will generate income and I will never have to sell shares. I appreciate your insight and if possible, make more videos on dividend funds in future. Thanks
Great in depth video. I've been struggling to decide whether to include SCHD in my Roth IRA but this video has made up my mind. Would it be irrational to hold an equal amount of VTI and SCHD? Or would it make more sense to lean more on VTI?
Agree @ not being a fan of dividend tilt. Monthly payments don't matter. Total return matters most, and can be converted to monthly payments. If I wanted to make a factor bet (ie: value comeback), I would do something like 80% total market, 20% small-cap value.
Rob, Thank you so much for given actual examples of what you picked and the visual portfolio visualizer!
Rob, at 26:00 you express surprise that adding schwab increased performance. I think you have to remember that you didn't just replace the overall stock fund, you also replaced a portion of the international fund, and intl funds have been comparatively dreadful and a drag on every portfolio for far more than a decade, with just a couple a brief blip exceptions.
I know you're about diverse investments & being involved across a lot of sectors, understandably so, but I got almost completely out of intl about a year ago after decades of intl being nothing but a drag, and thus far, I have no regrets.
Your mileage may vary, past performance, etc. ;-)
VTI, VXUS, SCHD = 3 (1to avoid BND) Others to review = DIV, SDY, VIG,
Thank you for this share. Very informative.
Great Information as always..you're the Best!
Hi Rob. Great video. Charles Schwab just released a new fund, SMBS. Can you provide your opinion of this new fund?
I'm treating my portfolio as one giant annuity. Stock market dropping, but my dividends aren't and that is what I'm living on in retirement. Leaving the principle alone, and with a downed market, I've shifted some transfer to bank account back to reinvest so I get more shares.
Diversifying in Value, that's how I found SCHD and why I cont to add to it. Div is a bonus and very welcome in this market. Small cap value also doing great today. Actively managed inexpensive small cap ETF = AVUV. Would love to hear your take on REITs in this environment. Currently holding OLP and Stagg
I feel dividend funds are a good fit for a value type fund that gives some diversification outside of a market cap weighted fund.
This is the best video on div ETF! Thank you so much. Could you also compare SCHD and JEPI, if you happen to have some time? I know they work with different strategies, but wondered if I can mix these two ETFs for my cashflow, or just stick to SCHD.
yea i was curious about JEPI too i own a significant amount of SCHD but am curious how JEPI compares especially in regard to taxes since its heavily involved in options contracts..the dividend yield sure sounds attractive though
Hey Rob, what options are available for non-residents to open an account and invest in an index fund like vanguard?
Is SCHD a US only fund ? If so then my guess is that the reason your three fund plus schd portfolio outperformed a little bit is that you have a lower allocation to the foreign stock fund. Perhaps a more fair comparison would substitute vigi for the 5% you took from the intl fund, or compare to a portfolio with 25% intl instead of 30%.
Good point. I'm sure that's the reason.
Good info. Thanks!
What are your thoughts on bgy?
Thanks Rob good video
I have three funds portfolio(vti, VXUS and bnd) in my rollover IRA now what should I include in my Roth IRA. I am retired and 77years old.
Hi Rob, thanks for this awesome video. Newbie here, and a subscriber of yours.
May i know whats the difference or disadvantage (if any) of getting the S&P500 through TSX only like vanguard's VFV. Am I missing a lot? should I get US$ as well?
VFV does underperform VOO a bit, but I'm not 100% sure why. Fees are a bit higher, but not by much. There may also be some tax issues involved.
sDIV AND div Ccompound every month?
What are the TSX equivalents of these?
Is a standard deviation of 18% in a long term four fund portfolio. Two index, two tech.
Thanks for your help
My husband and I think you are awesome. We enjoy your videos.
How does NOBL hold up against these etfs?
Why not a value etf instead o a dividend focused etf?
Great, thanks. Can you compare international ETFs. They have much lower P/E than American ETFs. If we have rotation to value and international over the next decade they would be winners. VEA, VPL seem to be better than VXUS
Not sure it is advisable to compare pe between different markets. Probably checking against historical pe of those etfs would be better.
Thanks. Do you think for folks with 20+ years until retirement that adding a dividend ETF allocation could replace a bond allocation? 2.5-3% dividend yield and market gain participation with moderate increased risk vs similar bond yielding ETF?
This is a good question. Was wondering the same thing about swapping bonds for the likes of vym or schd
If you still have 20 years until entering retirement, in my opinion you don’t need bonds. As long as you have a steady monthly income from work, and some emergency fund, you shouldn’t need them.
I have made my portfolio of 6 etfs total
Schd
Vti
Vxus
Dhs
Vnq
Jepi
Equally divided or so
Though there may be some overlap I believe this yields the most dividend returns at just 20k you can bring in 100/mo minus expenses which isn't much if you add expenses
Can you possibly try and simulate this on your end and give some feedback?
VTV for the future
VYM ???
It's the Vanguard High Dividend Yield fund: investor.vanguard.com/etf/profile/VYM
I would like to know which other dividend funds you do not like (I probably own some). In the video, you said a link would be in the blurb below the video. I have not found it yet. I would be grateful if you would make that info available.
The link is in the first pinned comment.
I think FUTY (utility index etf) is a pure dividend fund. Electric plant has no growth no decline, only dividend. 3+%
🙏🏼
Rodriguez Gary Wilson Jessica White David
Not sure the advice here will age well.
Best Dividend ETFs Article: robberger.com/best-dividend-etf/