US Dividend Achievers Select Index, which offers exposure to dividend paying large-cap companies that exhibit growth characteristics within the U.S. equity market. Compare the number of holdings, all ETF holdings, asset allocation, and much more. For instance, only equity ETFs will display sector and market cap breakdown, among other equity fields. Bond ETFs on the other hand, will display the type of bond, coupon breakdown, credit quality, and more bond specific metrics. In a year when the mega-caps did not drive the market, RSP’s 12% loss looks relatively strong. The dividend yield spread (“YS”) is based on a timeless intuition.
And it is almost impossible for most investors to meaningfully understand more than 2 dozen stocks. For this reason, I feel I have a much better understanding of the holdings in SCHD at a stock level than for VOO. For example, we’ve written dedicated analyses on all the top 10 holdings in SCHD plus some of its small positions.
Many of the 49 Financials sector stocks SCHD holds are small and mid cap regional banks and financial services companies with market caps between $500 Million and $5 Billion. These are not companies that do business worldwide easylife toolz like JPMorgan Chase or Visa , which each make up roughly 1.03% of VOO. Their growth is likely to be extremely modest over the coming years, and that is only if they aren’t acquired by much larger companies.
The fund has a dividend yield of 2.89% with an expense ratio of 0.06%. VOOSCHDNameVanguard S&P 500 ETFSchwab U.S. Dividend Equity ETFCategoryLarge BlendLarge ValueIssuerVanguardSchwab ETFsAUM753.41B26BAvg. Yield1.34%2.89%Expense Ratio0.03%0.06%The Vanguard S&P 500 ETF is a Large Blend fund that is issued by Vanguard. It currently has 753.41B total assets under management and has yielded an average annual return of 14.45% over the past 10 years. The fund has a dividend yield of 1.34% with an expense ratio of 0.03%. Information technology, industrial stocks, financials and health care make up roughly 65% of the companies held by VIG.
And we feel very positive about almost all of its top holdings. For example, our article on Texas Instruments argued that TXN’s profitability rivals that of Apple and yet it only trades at a much lower P/E. However, the current gap is near the widest level since the 2002 tech bubble as you can see from the chart below. The growth sector in the S&P 500 index is currently valued at a P/E of 22.8x, while the value sector is only at 14.8x, a discount of 35%, more than 1/3. And later in this article, you will see that because the S&P 500 index is dominated by growth stocks, the same valuation gap extends to the overall market too.
This report compares the performances of Schwab US Dividend Equity ETF and S&P 500 ETF Vanguard stocks. After reading this report, you will learn the differences in growth, annual returns, dividend payouts, biggest gains etc. SCHD, the Schwab U.S. Dividend Equity ETF, is a narrower segment of the market than VOO or VTI. The fund is a very popular dividend ETF from Schwab that launched in late 2011.
Returns largely determined by time period, fund characteristics. Advisors and end clients continue to save as asset managers like BlackRock make more ETFs available for net expense ratios of 0.05% or less. Today, BlackRock announced it was cutting the fee of the iS…
That low P/E was a tailwind for those investors by 1982 when VFINX shot up as investors rediscovered stocks, ushering in the great bull market of the 1980s. But throughout the 1970s most investors had fled stocks, preferring fixed income products with much higher yields and real assets like gold and real estate. Both VTI and VOO are excellent low-cost ETFs that can work well for beginners and experienced investors alike. They have the same 0.03% expense ratio, meaning neither fund is likely to eat away at your returns, and the long-term performance for these funds has historically been similar.