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The article I wrote back in October, SCHD, RSP, or VTI: Where to Deploy Cash in a Correcting Market? has been among the most popular that I have published over the past year. I concluded that the Invesco S&P 500 Equal
RSP: Not Nearly As Good As SCHD In A Correcting Market So Far
Summary
- We've entered a period that could very well resemble the years that followed the peak of the dot.com boom, which held a long "death of a thousand cuts" market decline.
- With that in mind, it's time to see if RSP has lived up to my hopes that it would be the optimal investment for correcting market.
- RSP has outperformed the S&P 500 recently and trounced VTI. But not by as much as has SCHD.
- SCHD looks like a better investment for uncertain times than RSP, especially for income investors. But there are some hints VOO may be better long-term than either.
Though I have done quite a few different things over the course of a long life, I am best known as a writer of bestselling books about business and health. My success has come because I am a very curious person who doesn't just follow the herd and trust whatever the experts tell us to believe. I do my own research. I collect the facts, look at them objectively, and draw my own conclusions. Over the years, I have been amazed at how much of what everybody "knows to be true" is based on poorly designed studies, many of them impossible to replicate. I approach Investing with the same open mind, challenging the orthodoxies that attract the herd, studying how things really work, and doing my best to come up with an approach, based on facts, that works for me and would appeal to those who find thinking worthwhile.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SCHD, RSP, VTI, VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am not a registered investment advisor. I am an ordinary investor who researches articles to clarify my own understanding of stocks, ETFs, and the market in general. Before you invest based on anything you might read in my articles or those of any other person offering investment advice online, do your own research to confirm the soundness of what you might have read.
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