This is Why SCHD is Struggling in 2023
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- Опубликовано: 10 сен 2024
- Join me as we deep-dive into the perplexing state of the SCHD ETF in 2023. This video aims to unravel the mystery surrounding the SCHD ETF's performance, a high dividend-paying Exchange Traded Fund, which has been on a rather tumultuous ride this year.
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With a remarkable shift in SCHD's fortune, declining by 6% as opposed to its competitor VYM, which has experienced a 6% rise, it's essential to understand what's going on. We explore this contrast and provide you with an in-depth analysis that you won't find anywhere else!
Through a comparative study with the Vanguard High Yield Dividend ETF, the S&P 500 Index, and VTI, we lay out the year-to-date price return of these funds, illustrating why SCHD is down and how it compares to these other popular ETFs.
In this video, we meticulously dissect the causes of SCHD's decline. From exploring how the financial sector shenanigans involving banks such as the Silicon Valley Bank, Signature Bank, and First Republic Bank affected SCHD's performance, to how changes in industrial and health care sectors have impacted SCHD's returns, we leave no stone unturned.
We also delve into the crucial sectors that drive the stock market's performance, the technology, and communication sectors, and why SCHD hasn't been able to capitalize on these sectors' growth. This will provide you with a clear picture of why SCHD's performance has been disappointing this year, particularly when compared to ETFs heavily invested in these booming sectors, like QQQ.
It's not all doom and gloom, though! We explore the brighter side, giving you a broader perspective on SCHD's long-term performance and how it has performed against S&P 500 and VTI in the past three years.
Towards the end of the video, we answer the pressing question - will SCHD recover or continue to flatline? As we conclude, we leave you with food for thought on what the future might hold for this ETF, armed with information to help you make more informed investment decisions.
This video provides valuable insights not only for those invested in SCHD but also for those wanting to understand the dynamics of ETF performance and the broader market. Make sure to watch until the end for our comprehensive conclusion on the future of the SCHD ETF.
Don't forget to like, share, and subscribe to our channel for more in-depth analyses like this one. If you have any thoughts or questions about the SCHD ETF, its current performance, or its future, don't hesitate to drop a comment below. Your engagement helps us create content that suits your investment needs.
And if you're intrigued to learn more about SCHD and JEPI, check out our next video here: • JEPI OR SCHD for the B...
Remember, an informed investor is a successful investor. Keep watching, keep learning!
#SCHD #SCHDETF #ETFAnalysis #Investing #StockMarket #Finance #FinancialAnalysis #InvestmentStrategy #Portfolio #Dividends #HighDividend #ETF #SCHD2023 #WhySCHDisDown
*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Do you think the Future is BRIGHT or DARK for #SCHD in the Future?
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Next Video to Watch, SCHD vs JEPI: ruclips.net/video/sToDYpcN418/видео.html
The S&P 500 is held up by AAPL, MSFT, AMZN, GOOG and NVDA year to date. Some call it the S&P 5. As of Monday this week, AAPL has a bigger market cap than all Russell 2000 stocks combined. Let that sink in...
SCHD doesn't have any exposure to these stocks; of course it will underperformed during this time. This is not related to financials IMO as there are plenty of financials in the S&P.
In 10 or 20 years, I don’t think I’ll have any regrets buying SCHD in this current price range.
My thoughts exactly long-term. Currently is taking a beating due to its ties to the financial sector stock chaos in early 2023. I don't see that chaos happening every year over year.
Everyone forgot why we got in SCHD for the dividend growth rate! Why would you want to buy SCHD at 80$? Be happy it’s at 70$ great video
Exactly
If you like it you should be buying it now. I am thinking this is a good time to jump in.
Yeah i'm DCAing in right now.
Famous last words....why didn't I buy more when it was lower
If you don’t plan on, holding an ETF or a stock for a a year then don’t hold it for a day.
Success seems to be connected with action. Successful people keep moving. They make Mistake but they don’t quit, The stock market Has plenty of opportunities to earn a decent Payouts with the right skills and proper Understanding of how the market works. My advice to anyone feeling the heat in this bad market, is to start trading in long term more than ever. If you can then get a professional to trade for you I think that way your assets are more secure. I invest with expert Mr K and the profits is great even with the dip.
He's on TELEGRAMS
@k99coin THAT IS HIS USER NAME
Best signal provider in the market. Knowledgeable, level headed no loss like some other traders who recently jumped on the bandwagon…
Good theory. Banks aren't done getting beat up, so I see this as a great time to keep building my position. Probably not a good trade, but I plan on being with SCHD for the long haul.
14% of the SCHD holding in Finance sector (which has taken a beating) vs 12% for VOO.
VOO is also Tech-heavy compared to SCHD
Let's also no forget that the financial sector started falling befor SCHD realigned their portfolio, so while we saw the fall, we won't get the benefit of rhe entire rebound in financials, since the % of financials is down.
@@jdgolf499 To add to that they added more healthcare. Buying it at ATH and now we get the benefits of riding that train downwards.
SCHD does not own AAPL/MSFT/META/AMZN/NVDA/TSLA. That is most of the difference. Add weakness in the healthcare/financials and the mystery is solved.
Fyi, the correlation between SCHD and VOO is 0.89. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns. So if I had to choose one, I'd pick VOO.
If people lose faith in Schd already then they should not invest. This drop is nothing out of the ordinary for Schd.
Thank you for the reassurance. I just started investing, schd being one of my selections. It is a little disheartening, but I told myself to think long term (which historically has done well)
@@Thesakuraharona buy it up when ut dips like this!! that is what i am doing...
Yes, nothing out of the ordinary for any stock. 😎
@@Thesakuraharona buy the dip
Will do! Thank you everyone.
I'm up to 2601 shares and shooting for 3000 by end of year.
That’s awesome. Congratulations. I have a measly 396 number of shares.
Thank you Bob for this video. I now have SCHD as my top ETF.
I’m buying every week!
I hate when people compare SCHD to the S&P, or QQQ, because they are not the same investment! SCHD is more of an income producing ETF, whereas the others are growth. However, SCHD will recover as the financial sector recovers, and it will get back on track. SCHD should be a poertion of a portfolio, along with QQQ, S&P, Small Cap, etc. However, as I head into retirement next month, I will change from reinvesting my SCHD dividend, into income! I see no worries with SCHD!
I still believe SCHD is a great ETF but I don't think SCHD will have the same returns as it did in the last 10 years. Those returns were during a 10 year bull market. The next 10 years won't be as good in the stock market
Didn’t help they restructured after the bank drop so instead of holding they sold and rebalanced. So it took a hit as banks will eventually bounce back
And one SCHD fell into the $69 range today I couldn’t help myself and picked up 1000 shares
This means you were sitting on 69000 dollars in cash until this moment. Sitting on cash is the worst thing you can ever do unless you have a crystal ball that can see the future.
@@and7976he could be using is to get 4.5 ish interest while he waits in a few vrokers
@@galiciadabest there you go.
Red Tag Sale means Buy Buy Buy !!!
Iregardless isn’t a word
Dividends in taxable account is highly tax inefficient. if we are young, we need to focus on growth ETFs. Closer to retirement, dividend ETFs are great,
Untrue! Schd dividends are “qualified” dividends and get a special tax treatment designed (by elite rich people) to be tax less than ordinary income. Do ur research.
I am curios as to why SCHD does not have any real estate stocks.
This is a buying opportunity, hold it for long term and enjoy the additional shares/dividends.
I cant believe people are stressed out on etfs like individual stocks
I know, seriously. SCHD Will be back and I will have bought it at $69
@@JiveCinema exactly 💯
You don't focus on share price of SCHD, you always cost average into it when you get paid. When it hit 69 bucks, I added another 10k into it. I have over 2,000 shares.
If I am not mistaken SCHD reconstitutes once a year only in March - in my opinion this is not enough of these stocks so not meet criteria to the fund’s requirements a stock or two can drag returns if not meeting requirements-
From the research I've done ....errr using a magic 8 ball. I went with JEPI instead of SCHD. "All signs point to yes!"
Agree. I think I heard a long time ago that a lot of the economy, and hence a lot of the market is related to two things - homes and cars. Directly but also indirectly. Financials obviously have a role to play there, but so do also industrials, transports, raw materials, chemicals etc. My guess is that when people start buying homes and cars at a reasonable rate, then the sector rotation will follow. This may take some time but it will obviously happen, it always does.
Buy SCHD for the dividends, not the price performance. The declining share price just lets you buy more shares when you reinvest the dividends. If they can keep growing the dividend at anything close to their historical record, it will be a perfect example of a "dividend snowball" investment.
If I am only worried about dividends, I will buy JEPI or JEPQ.
If you don't care about the growth part, there are a lot of stocks that pay much better than SCHD.
Let it ride! SCHD is a great ETF
People act like up is the only direction 😂
lol folks panic over nothing. hen the tech stocks tank in their turn everyone will cry about that too. Diversity is king And keeping your greed in check.
I personally see continued weekend due to their reconstruction, Ford, Paramount, and I believe Chevron, were all bad choices going forward. These aren't small chunks in SCHD neither.
The pick of Ford in combo with some of their drops is what is stopping me from buying now.
I would like a continued weekend
A very short-term view of investing is a waste of time.
Wouldn't it be ok if we are looking at 10 to 20 years?
Shoot I’ll take it at these prices, I started buying into in 2021 so I bought it at the highs and more than happy to buy in right now.
The small extra allocation to financial is not the problem, not holding mega cap tech is the reason for underperforming this year. Very simple
How do you feel about SCHO? Do you think it has a place with investors for diversification?
Great video.
May I know the site name showing the total return including dividends?
I don't understand why people are panicking about this ETF. Taking into consideration the dividends, you can recoup the loss which still sucks but at least you are not losing money.
Remember guys When there is bad news on a stock is also a great chance to buy
These financial scares actually took effect in the stock market giving us a great opportunity for the long term on multiple companies ❤ let's get it 💪
Love the sector chart very interesting how can I access something like that?? Anyone
QYLD up 10.78%.
I would have liked if I could have seen the whole graph behind your talking head bubble. Maybe reposition it next time? Just some constructive criticism.
Buy more if you can!
It did go up today and is catching up .
Let’s keep it going!
@@BobSharpe To the point of our cost basis and perhaps out for now.
you should do a video comparing OMFL vs. SCHD vs JEPI in total return
DCA down, a buy for me.
What service do you use for that heat map screenshot?
Im holding my SCHD and JEPI...still deciding if i'll add more shares here or maybe start a position in something like QQQM to better balance things out..🤔
Have to just buy the dip. Banks and what not will all be fine in alike 3-5 years easy. Personally, let another bank fall so we get more of a dip.
If folks are worried after 6 months of poor relative performance, they are going to have a very difficult investing career.
When they added Ford and abbvie this year everything tanked
Who else buying schd on pay day like me
If it drops anoth 10-20 I’ll probably start because I’m doing better owning not paying
If all the money is currently piling into tech, wouldn't that create a lot of opportunities elsewhere?
Today I got an email from webull saying they are delisting crypto currency.
SCHD will be resilient and it’s only on sale for now at a discount.
Schd ❤ along with jepi !!
bought 100 shares since Monday!
We're seeing a few different factors, but most notably after a train wreck last year tech is through the roof. So SCHD dodged the bullet, now is missing out on the rebound.
Won't see any self correction / cleansing unless the financials and industrials actually start racking up debt or cutting dividends. Simply not being popular is not a criteria.
I also suspect that there is an unwinding of the bond alternative crowd who have spent a decade moving into SCHD and the like and now moving back to actual bonds. On a risk-adjusted basis all equity assets will reprice based on the higher returns expected from risk-free treasuries. SCHD as a dividend income ETF is more directly exposed to this than an ETF like QQQM.
It's called a Market Rotation. Hedge Funds do it all the time.
What ETFs would you invest in with 50k. 20year investment
I wouid invest in a good professional financial advisor, but come on here and ask for advice from unqualified stranger!
Get a grip 😊k
When they did the reconstitution in March they added Ford and Blackstone. That was a dumbass move algorithmic or not.
SCHD FOR CHEAPER ? HELL YEAH GREAT
We're in a recession they will cry im 80ties baby im used to it
Won’t the schd eventually change their holdings?
Usually every March if stocks don't perform they're out.
High turnover rate. . Nuff said.
The bank “crisis” had no effect on this. SCHD was a 1/3 of my portfolio until this video when I sold off most of it and went into VTI. 2% less dividend but 18% more growth. Going forward, I just don’t see SCHD beating most index funds or even bond funds like BND or TLT.
They’ll just rebalance next year. Buy now while it’s down
it's because it is a bad etf and dividends are a tax inefficient waste of time like the few million youtube videos on schd
Why are dividends bad in your opinion?
Want to hear your reasoning of this being a bad ETF and dividends not being worthy.
@@michaelperkins3003 I second that
Making 1k a day at my day job is extremely tax inefficient as well. But guess what? I’m still gunna do it…
As a non US holder I pay 30% tax on dividends but I pay 0% tax on capital gains. Buying growth ETF without dividends makes more sense to me.
Just buy VTI and forget about it.