[CoachKandSportsguy]

Just a moment...

The SPHD ETF and the SCHD ETF are both dividend-focused exchange-traded funds, but they have some key differences:

Index and investment focus:
The SPHD ETF tracks the S&P 500 Low Volatility High Dividend Index, which selects stocks from the S&P 500 index based on their dividend yield and historical volatility. However, the SCHD ETF tracks the Dow Jones U.S. Dividend 100 Index, which focuses on high quality, large cap U.S. companies with a history of consistent dividend payments.

Portfolio composition:
Due to their differing index methodologies, the two ETFs hold different portfolios. SPHD typically holds a concentrated portfolio of 50 stocks selected from the S&P 500, while SCHD holds a broader portfolio of 100 high-dividend-yielding stocks from across the U.S. market.

Sector exposure:
The sector exposure of the two ETFs may also differ. Depending on the underlying index and stock selection criteria, the SPHD ETF may have a bias toward sectors with high dividends and low volatility, such as utilities, real estate and consumer staples. SCHD aims for sector diversification, but specific sector weightings may vary over time.

Expense ratios:
Expense ratios represent the fees charged by the fund manager for managing the ETF. SPHD has an expense ratio of 0.30%, while SCHD has a slightly lower expense ratio of 0.06%.
Yields: SPHD has a higher yield of 4.97%, while SCHD has a lower but respectable yield of 3.77%. This difference is by design, as SPHD focuses on high-yielding dividend stocks, while SPHD focuses on companies with a history of paying dividends.

Performance:
Investors seeking SPHD’s higher yields will need to accept the potential for lower returns, as SCHD outperforms SPHD for periods of one year and longer.

SPHD SCHD
1-yr return -14.19% -8.15%
3-yr return 10.09% 13.61%
5-yr return 3.85% 10.75%
10-yr return 7.82% 11.05%

my vote is for SCHD:
the higher capital gains annually of 2-4% offsets the lower 1% dividend yield. .

[retiredguy123]

Originally Posted by CoachKandSportsguy

Just a moment...

The SPHD ETF and the SCHD ETF are both dividend-focused exchange-traded funds, but they have some key differences:

Index and investment focus:
The SPHD ETF tracks the S&P 500 Low Volatility High Dividend Index, which selects stocks from the S&P 500 index based on their dividend yield and historical volatility. However, the SCHD ETF tracks the Dow Jones U.S. Dividend 100 Index, which focuses on high quality, large cap U.S. companies with a history of consistent dividend payments.

Portfolio composition:
Due to their differing index methodologies, the two ETFs hold different portfolios. SPHD typically holds a concentrated portfolio of 50 stocks selected from the S&P 500, while SCHD holds a broader portfolio of 100 high-dividend-yielding stocks from across the U.S. market.

Sector exposure:
The sector exposure of the two ETFs may also differ. Depending on the underlying index and stock selection criteria, the SPHD ETF may have a bias toward sectors with high dividends and low volatility, such as utilities, real estate and consumer staples. SCHD aims for sector diversification, but specific sector weightings may vary over time.

Expense ratios:
Expense ratios represent the fees charged by the fund manager for managing the ETF. SPHD has an expense ratio of 0.30%, while SCHD has a slightly lower expense ratio of 0.06%.
Yields: SPHD has a higher yield of 4.97%, while SCHD has a lower but respectable yield of 3.77%. This difference is by design, as SPHD focuses on high-yielding dividend stocks, while SPHD focuses on companies with a history of paying dividends.

Performance:
Investors seeking SPHD’s higher yields will need to accept the potential for lower returns, as SCHD outperforms SPHD for periods of one year and longer.

SPHD SCHD
1-yr return -14.19% -8.15%
3-yr return 10.09% 13.61%
5-yr return 3.85% 10.75%
10-yr return 7.82% 11.05%

my vote is for SCHD:
the higher capital gains annually of 2-4% offsets the lower 1% dividend yield. .

By comparison, the Vanguard S&P 500 index mutual fund has 3, 5, and 10-year returns of 12.88%, 10.98%, and 11.95%.

[CoachKandSportsguy]

Originally Posted by retiredguy123

By comparison, the Vanguard S&P 500 index mutual fund has 3, 5, and 10-year returns of 12.88%, 10.98%, and 11.95%.

And dividend yield comparison?
and maximum draw down comparison?

Sort of an orapple comparison. .

SP500 is a broad large cap fund.
High dividend equity fund is a sector index for a portfolio construction for specific risk tolerances and desired outcomes.

Lets say you want a 60/40 portfolio, 60% equities, 40% bonds. . the risk parity portfolio, where bonds and equities go in the opposite directions, is a long term portfolio, optimized for 40 years of falling or stable macro environments.

For the aged, 60/40 or SP500 portfolio is too risky due to loss of low correlation under certain conditions and excessive higher risk equity exposure.

Trading the equity portion of the equity / bond portfolio mix to SCHD offers a better portfolio outcome with more income/cash for taxable portfolio withdrawals with lower tax implications. . and the 60% should be reduced to 40% or so anyway. .

single annualized return for customized portfolio construction is no where near sufficient for best results using other metrics. .