SCHD: A Great Way To Miss Out On Wealth Accumulation

(11min)

Summary

  • I strongly advise against investing in the Schwab U.S. Dividend Equity ETF due to its consistent underperformance compared to broader market indices.
  • Despite its focus on high dividend-yielding, financially sturdy stocks, SCHD's returns have lagged behind the S&P 500, NASDAQ, and Dow Jones Industrial Average.
  • Alternative portfolios, including individual high-yield stocks like AT&T and Truist Financial, offer better returns and higher yields than SCHD.
  • SCHD's increased exposure to financials adds risk, and its yield is relatively low compared to other investment opportunities like 30-year treasury notes.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Currency trader on video call from his home office

Alistair Berg

One thing that I really hate to see is for investors to make decisions that are suboptimal for them. I understand that there are always exceptions to any situation and those need to be understood and respected. But in many

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This article was written by

34.35K Followers

Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of T 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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