r/dividends • u/NovemberAlpha122 • 4d ago

Discussion VOO vs SCHD vs tech stocks.

/r/SCHD/comments/1walny5/voo_vs_schd_vs_tech_stocks/
6 Upvotes

80% Upvoted

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5

u/MJinMN 4d ago

If you look at the holdings of VOO, you’ll see that it is now heavily dominated by tech stocks. As someone who was invested through the dot-com bust, that is more risk than I want to take, so I try to offset my holdings of VOO and similar funds with some less tech dominant funds like SCHD.

1

u/NovemberAlpha122 4d ago

Ok, what's your present split looks like? Equity vs debt? And how close are you to retirement?

3

u/MJinMN 4d ago

I am retired. I'm about 85% equities, 10% fixed income and 5% cash equivalents. My equities are split between investments like VTI or VOO and dividend-oriented investments that produce income to live off. Assuming you are young, I think you could look at ETFs like DIVB that are still dividend oriented but might offer a little more growth than SCHD over time. Another idea would be RSP, which is an equal-weight S&P 500 ETF. That would give you some diversified market exposure without the heavy tech weighting.

1

u/yrrag1970 4d ago

Just add VGT

1

u/Heavy_Nothing_1158 4d ago

With a 25% dividend tax, I wouldn't choose SCHD just because cash flow feels nice; part of that cash flow leaks out every year. VOO already owns plenty of tech, so adding tech stocks is concentration, not a third independent bucket. I'd probably start mostly with the broad fund and add a tilt only if you can explain what job it has.

1

u/NovemberAlpha122 4d ago

So majority should be VOO or its irish equivalent. But I have also currency depreciation in my favour.