SCHD or SCHG

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Hello, Dan

Do you like these ETFs, and if so, which one would you choose as a long-term play?

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Asked on January 21, 2025 4:22 am
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I'm a fan of both funds for sure yes. Obviously with the exposure to big tech SCHG has outperformed SCHD by a very wide margin over the last 10 years or so but it is no guarantee that big tech continues to perform the way it is now.

If I were to personally buy one myself, it would be SCHG. SCHD is more of a dividend growth fund and income fund and at this point in time I'm not overly concerned about income generation and would more so want exposure to high quality companies that are growing their earnings and providing strong returns on capital.

A few reasons one might be inclined to choose SCHD, on the other hand, would be if you were insistent on the income generation. The fund has done quite well in selecting high quality companies that have consistently grown their dividends. The second would be if you believe the runup in big tech has likely ended and they won't perform as well moving forward. Big tech is not nearly as prevalent in SCHD as it is in SCHG.

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Posted by Dan Kent
Answered on January 22, 2025 8:06 am