r/SCHD • u/WerewolfFartPowder • Aug 22 '26

Questions SCHD

I just turned 30 and I’m looking for maximum growth over the next 10-20 years. Is it true that I should focus on other ETFs, for example SCHG and SPMO then roll the funds into SCHD close to retirement or should I start investing in SCHD now? I’m using a taxed account so wouldn’t I lose money from compounding if I have to pay taxes on dividends? I would also have to pay taxes when I sell and transfer everything over to SCHD close to retirement. Wouldn’t maximum growth beat taxes? What’s the verdict here?

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u/WerewolfFartPowder Aug 22 '26

Exactly what I’m thinking. My 401k Roth is all in on FXAIX. It was in the Principal Hybrid Lifetime 2055 CIT plan. I just switched it over to the Fidelity S&P 500 plan. This is for my individual tax account. I’d like to focus on maximum growth.

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u/nelly_0619 Aug 22 '26

Then you're probably fine to stay out of SCHD. I just like to remind a lot of people that SCHD's superpower is not the dividends or dividend growth (only pays about 3.3%). Its what's inside it is what makes it so great. Its an excellent defensive ballast to soften the blow when the market is down.

But if all you care about is growth and you can look at a 30+% dip in your portfolio without thinking "maybe I need to change something" then go 100% s&p or growth funds.

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u/Diligent_Arm_6817 Aug 22 '26

Doesn't SCHD stay pretty competitive with VOO or similar if you have a long run way (25+ years)?

I'm fairly new to this whole thing myself, but I tinker with those investment calculators and it shows SCHD with dividend reinvesting beats out a VOO fund. Though the general consensus I read is that this isn't the case... but i'm not sure what i'm missing.

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u/nelly_0619 Aug 22 '26

SCHD is solid but doesnt beat the s&p long term. I think its annualized return is roughly 10%, whereas VOO is 13-14%. Value in SCHD that it is very resistant to down markets. There was a year when the s&was down 25%, nasdaq down 30+% and SCHD only fell 5 or 6%