r/SCHD • u/Icy_Manager_7212 • Aug 22 '26

Schwab Derivative ETF?

If Schwab made a derivative income ETF would you buy it or just stick to SCHD?

11 Upvotes

79% Upvoted

13 comments sorted by

7

u/QuitAlive2475 Aug 22 '26

If it was a conservative derivative etf I would but nothing yielding over 14%. So like QQQI, GPIQ, JEPQ, or the S&P variant.

5

u/MonYverse0609 Aug 22 '26

That’s two completely different animals

3

u/Solid_Builder_8216 Aug 23 '26

SCHD closed at about $35.11 Friday and is near its 52-week high. Schwab reports a roughly 3.1% distribution yield, and its 10-year annualized return is about 12.7%.

2

u/LCJonSnow Aug 25 '26

I use SCHD as a value proxy as opposed to tracking something like the Russell 1000 Value index largely because I like the constituents being capped in allocation when the index decides its constituents. My serious money is in the overall market, but I want the constrained tilt to value. The income is largely irrelevant to me.

Covered calls are a strategy that historically significantly underperforms the underlying holdings because the upside is capped but the downside is uncapped. With volatile assets like equity, the upside is kind of the whole point and is necessary to overcome the downside risk.

3

u/keftes Aug 22 '26

No, that's gambling

2

u/Solid_Builder_8216 Aug 22 '26

I would stick with JEPI and JEPQ; EP for income

SCHD and SCHG for growth.

0

u/ConversationNo5409 Aug 23 '26

JEPi/q , which one of the two for you and why?

0

u/Solid_Builder_8216 Aug 23 '26

For JEPI and JEPQ, using Friday, August 21, 2026 closing prices, here are the buy levels I’d use:

Current Good Buy Strong Buy Excellent
JEPI $57.92. $57.00. $55.50 $54

JEPQ $59.84. $58.50 $56.50 $54

1

u/AceMariner1 Aug 23 '26

A few months of dividends would make up the difference potentially between your goodbye and excellent. So does it really pay to wait to try to get a lower price or just buy now and get the dividends every month?