SCHD Is A Suckers ETF, Buy These Instead

"The ETF lives up to those promises with a 3.83% SEC yield and a 0.06% expense ratio. However, a high yield doesn't guarantee captivating returns, especially if you compare SCHD to market indices. The fund has only produced an annualized 5.6% return over the past three years, which barely outpaces some corporate bonds. Retirees may want SCHD for its relatively low volatility, but it's not the best ETF for maximizing their returns."

"The Invesco QQQ Trust ( NASDAQ:QQQ) follows the Nasdaq 100 and has delivered an annualized 29.5% return over the past three years. It also has maintained an average return of 19.3% each year for the past decade. The fund places a heavy emphasis on big tech stocks, especially the Magnificent Seven. Tech makes up more than half of the entire ETF, and more than half of its assets are allocated toward its top 10 holdings."

"The VanEck Semiconductor ETF ( NASDAQ:SMH) has a 0.28% SEC yield and a 0.35% expense ratio. While SCHD investors may not like those numbers, they have been left in the dust by this popular tech ETF. SMH gives investors exposure to semiconductor stocks that are benefiting from the AI boom. Nvidia (NASDAQ:NVDA) is the largest position and makes up 17% of SMH's total assets."

Schwab U.S. Dividend Equity ETF (SCHD) provides a 3.83% SEC yield and a 0.06% expense ratio but produced an annualized 5.6% return over the past three years. The fund's returns barely outpace some corporate bonds and offer relatively low volatility, making it potentially attractive for retirees seeking stability rather than maximum growth. Invesco QQQ Trust (QQQ) follows the Nasdaq-100 and delivered annualized returns of 29.5% over three years and 19.3% annually over the past decade, with heavy concentration in large-cap tech, especially the Magnificent Seven. VanEck Semiconductor ETF (SMH) has a 0.28% SEC yield, 0.35% expense ratio, and significant Nvidia exposure, with NVDA comprising 17% of assets.

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