Explore the latest developments concerning SCHD’s 0.06% Fee.
SCHD’s 0.06% Fee Hides $413,350 in Decade-Long Underperformance on a $500,000 Position
SCHD's 0.06% fee costs $3 more per $10,000 than VOO, but the real gap is $413,350 in lost returns on a $500,000 investment over a decade.
SCHD excludes Nvidia, Apple, and Microsoft, making its dividend screen a hidden bet against mega-cap growth.
VYM, DGRO, and VIG offer similar dividend tilts with comparable fees while avoiding the 82-percentage-point return drag SCHD holders absorbed.
Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. Our free reader guide explains the flaw that separated them, and the income-first method built to avoid it.
A $500,000 position in the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) could have grown to roughly $1,688,200 over the past ten years. The same money in a plain S&P 500 fund would be worth about $2,101,550. The 0.06% fee printed on the marketing page was the smallest number in that comparison.
SCHD: Why I Think This ETF Still Wins In A Rate Hike Cycle (NYSEARCA:SCHD)
I had an epiphany that sparked an idea for this article on the Schwab U.S. Dividend Equity ETF (SCHD). The ETF receives plenty of coverage here on Seeking Alpha and for good
Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD, VZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
EMS Neo Electromagnetic EMS Body RF Slimming Machine Muscle Stimulator Fat Removal Hi-Emt Build Muscle Device
SCHD's 0.06% Fee Hides $413,350 in Decade-Long Underperformance on a $500,000 Position
SCHD prints one of the smallest fee numbers in the ETF universe, yet a half-million-dollar position tells a quietly alarming story about what that number leaves out.
A $500,000 position in the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) could have grown to roughly $1,688,200 over the past ten years. The same money in a plain S&P 500 fund would be worth about $2,101,550. The 0.06% fee printed on the marketing page was the smallest number in that comparison.
On the surface, SCHD looks nearly free. A 0.06% expense ratio works out to $6 a year per $10,000 invested. The Vanguard S&P 500 ETF (NYSEARCA:VOO) charges 0.03%, or $3. The fee gap is trivial.
For more detailed information, explore updates concerning SCHD’s 0.06% Fee.
0 Comments