I think a lot of people misunderstand why investors own and love $SCHD It isn’t just about chasing the highest yield or the most price appreciation. For most investors, it’s one piece of a diversified portfolio, not the entire portfolio. Its value tilt is meaningfully different from broad market ETFs like $VOO and growth-heavy ETFs like $QQQ , making it a natural counterbalance to growth-dominated portfolios. You get a combination of current income, dividend growth, and capital appreciation potential from a portfolio of profitable, established businesses. One thing I find fascinating is that $SCHD doesn’t have to make the highest highs to produce excellent long-term returns. Lower highs paired with higher lows can compound into returns similar to the broader market over time, often with a smoother ride. When fear returns to the market, investors often gravitate toward profitable, cash-generating businesses. That has historically helped $SCHD hold up better during many market downturns and is likely one reason it’s outperforming the broader market by such a wide margin this year. For me, it’s never been: ❌ Growth or $SCHD ❌ High yield or $SCHD It’s: ✅ Growth and $SCHD ✅ High yield and $SCHD You don’t have to choose just one. Build a portfolio where each holding plays a different role.
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