Best Growth ETF To Pair With SCHD To Beat The S&P 500 (Year 13)

[@robertbriscoe-mf2tx]

Great video Jeff! I'm with you. I've held VGT and SCHD for 6 years now. DCA into them every two weeks. Thanks for your analysis!

[@JeffTeeples]

Hey Robert! Love that, I bet your portfolio has grown very nicely. Thanks for watching and for the comment.

[@xiaowu1522]

I'm glad I met you six months ago, and thanks to your sharing, I purchased SCHD, VOO, and VGT. They are all doing great! Thank you!

[@oldrin1876]

Really solid idea, Teeples is the best!

[@JeffTeeples]

Thank you for the kind words! I'm glad to have you in this awesome community.

[@JeffTeeples]

Yeah he is! Haha, I'm playing, but I do appreciate your consistent support of the channel. It has been a fun ride.

[@ljrockstar69]

@xiaowu1522 these etf are hidden gems that don't get much mainstream attention 😅

[@xiaowu1522]

@@oldrin1876 nice

[@jonnymcadams6209]

Dang bro, you covered everything on this one and we even got blessed with a “very nice” reference. This was a great one, Jeff.

[@JeffTeeples]

haha, thanks Jonny! I can't help myself. I'm thinking maybe in my 50's I'll get a little more mature. My wife would say ZERO chance (:

[@DuffyJ1111]

I recently moved my additional HSA contributions to an SCHD/QQQM/VOO balanced mix. Thanks for the video.

[@JeffTeeples]

Thanks for watching the video and for the comment. That is a great mix! Stay the course and future you will enjoy time freedom.

[@coryhuff7287]

I really appreciate the breakdown. I wasn't taught how this really simple investment strategy works. Im in my late 40's and am just now catching on. I am opening Roth's for both of my girls (17 and 14) this week. They both have money that was locked up in CDs (what a waste). Im doing a mix of voo, vgt, and schd for both of them. I explained to them how this worked and said if you contribute monthly a little at a time and increase as you get older making more money, you will be a multi-millionaire by the time you are my age. My oldest said, "why didn't you do it, dad?" No shit kid, I didn't know I could.

[@JeffTeeples]

Love it, Cory. I got a good chuckle at the very end. I think you have an amazing mix of ETFs there for you and the girls. They will be so happy when they are in their 40s, 50s, and beyond! Thanks for watching and for the comment!

[@parispierre10]

Definitely one of best videos out here. Love the analysis

[@JeffTeeples]

Thank you for the kind words Paris. I appreciate you taking the time to watch the video and for leaving a comment.

[@markriley5931]

Very helpful for my upcoming rollover from Fidelity Growth Company fund in a previous employer 401k. I’m going to invest 80% of balance in VGT/SCHD with other 20% cash to DCA over 12 to 18 months. This will offset against existing VOO balance. Thanks 🙏

[@JeffTeeples]

Hey Mark. Thanks for watching and for the kind words. I love the moves you're making. Stick with that system and I think you'll be a happy camper in the long run. Of course, anything can happen in the short-term. We just need to stay the course (:

[@jeffkeenen9252]

55% SCHD, 20% SCHG, 20% JEPQ, and 5% MSTY at 58 years old with the plan to retire at 60.

[@JeffTeeples]

Hey Jeff. Nice mix! I love that you are heavy in SCHD as you near retirement. I think it is the perfect ETF in retirement. JEPQ is awesome too because you can reinvest those dividends back into your mix until you need the cash. Stay the course.

[@rockk973]

Im 51 and this is my portfolio like yours. Im a little heavier on schg.

[@amitjain3323]

Thanks!

[@JeffTeeples]

Thank you Amit! That is very generous and I greatly appreciate it! Glad to have you here in the community and hope you’re having a great holiday season!

[@chriscarlson9556]

Jeff, by far this is your best video. I watched it twice, maybe more like three times. Lol Here is why I liked it so much: 1. It's very relevant and should continue to outperform the market. 2. Low fees. 3. Very simple and avoids the constant up and downs of owning stocks. 4. Low maintenance. Set it, forget it. Just remember to rebalance once per year. 5. Show me the 💰 money 💰!

[@JeffTeeples]

Hey Chris. I appreciate the very kind words and I'm glad you liked the video. Thanks for all the support you've given the channel and this community. I love simple. I think the more complex we get with investing for more room there is to fall short of the market's returns. It's a hard game to begin with, so we should only tinker so much. It is one concern I have with the HODL factory. We have a ton of screeners and a complex scoring system. So far so good, but I wonder if it will continue to win long-term. Time will tell.

[@charlielipthratt7291]

Thanks, Jeff. I appreciate the detailed breakdown and all the added value you provide in the comments!!

[@JeffTeeples]

Hey Charlie. Thank you for being a pillar in the community (answering questions, and accurately I might add) of investors that are hungry to learn. It's been great having you around here. Appreciate the kind words.

[@royvillagran638]

Love the content and for those just starting I'm sure any drops in the market will allow them to buy low in 2025. My only big change this year, I added AVUV early in the year, in anticipation that, over time, small cap value might be a slight change that can make big difference long term. Only have 3 to 5% in various accounts and will add more if and when it looks like the option, long term. Currently have VGT/SCHG/QQQM, SCHD, VOO, and AVUV making annual changes to my percentage allocation each year until i retire. Slowly adding more SCHD each year and decreasing growth to hopefully create a less volatile portfolio on my retirement schedule. Thanks for the recap video!

[@JeffTeeples]

Love the holdings Roy. AVUV is a fantastic small-cap value. It's like you read my mind, it will be the video for Sunday (: I think there will be strong push for small cap in the coming years. It is too much of a long-term factor win to stay down forever. Thanks for your support of the channel. It has been a fun ride!

[@N8FLY]

Jeff, this video is one of your best so far! Very relevant and well explained.

[@JeffTeeples]

Thanks Nate! I appreciate the kind words and all the support you have given the channel.

[@oldrin1876]

The more I learn and think about it I think if your young and can handle a little risk something like 25% VOO 30% VGT 25% SCHD 10% SMH 10% IBIT and call it a day.

[@vitaliygoldin5423]

Honestly that’s a very nice mix

[@JeffTeeples]

Hey Oldrin. I think that is an awesome mix for a young person with a decently high risk tolerance. You probably know what I'm going to say the one rule is with this one assuming many decades left to invest. NO PANIC SELLING EVER when the market crashes (: Buy, buy, buy to those target allocations when everyone else is running for the hills.

[@oldrin1876]

@@JeffTeeples Absolutely! You are the best I have learned so much from your videos. Truly appreciate your hard work!

[@CarlosMataShow]

Nice mix (we see eye to eye) only tweak I would offer for consideration is, eliminate SMH and spread that 5/5 between VGT and IBIT, SMH is a subsector of Tech so VGT has you covered there in a more diverse manner in my opinion, and Bitcoin is a strong asset IMO so IBIT increase warranted.

[@upperman17]

You convinced me. Starting a JEPQ position. 6.5 year out from retirement at 55.

[@JeffTeeples]

Hey Daman! Thanks for watching and for your support as a channel member. It has been a fun ride. Man, I love JEPQ in my Roth. It is addicting, I can't lie lol. But it has outperformed VOO since inception by ~5% as of today on total returns. We'll see what the future holds. I'm glad it is out of my taxable account because the dividends are mostly non-qualified, and add to ordinary income. Roth takes care of that (no taxes period).

[@upperman17]

@ Yes. Keeping it both in my Roth’s as well.

[@cosnerivandenum4524]

Mine is SCHG, VOO and SCHD. 50%, 25% and 25% respectively. I feel like owning a VGT is very risky as it focuses heavily on tech. I want some diversification. Thanks for the content!

[@JeffTeeples]

Hey Cosner. Thank you for taking the time to watch the video and for leaving feedback. I respect that viewpoint & I think you have an awesome ETF mix. Stay the course with that and I have no doubt you'll hit your long-term goals.

[@ravichandra4689]

Thank you for the detailed analysis. Please suggest if I need to add or modify my portfolio. I invested 50K in SCHD and kept it aside, and I am now doing DCA into VGT - $200/Day to match SCHD. DGRO - $13,000 SCHD - $50,000 VGT - $14,000 --------- ROTH IRA - FSKAX 401K - S&P 500 ----------

[@JeffTeeples]

Hey Ravi. Thank you for watching and for the question. The specific mix will depend on your goals, risk tolerance, and investing timeline in general. But I love your holdings in general. Especially if you are close to, or in, retirement with the heavy weight in SCHD and DGRO. Adding VGT is a nice complement to those holdings because it will get you access to more growth.

[@tompartyka352]

Always great content Jeff! Look forward to all of your quality videos.

[@JeffTeeples]

Thanks Tom! I appreciate the kind words and it is great to have you here in the community.

[@unboxingnams1332]

I been investing on SCHD, SCHG and DGRO 💪

[@JeffTeeples]

Oh yeah, that is a great mix. Keep buying more and building that portfolio up. You'll be a happy camper down the road.

[@Furmoo95]

Same!!!

[@mikespeiser7267]

I TRULY believe this is the perfect portfolio. Jake with DGI (Dividend Growth Investing) would definitely approve!

[@StraitTalkMedia]

Thank you just starting greatly appreciated...cause since Ive started learning my head has been spinning...very clear presentation

[@JeffTeeples]

Of course, thank you for watching and for leaving a comment. I appreciate it and wish you well on your investing journey.

[@aaronthompson4321]

Excellent video!!! Thank you for sharing your hard work, much appreciated.

[@JeffTeeples]

Hey Aaron. Thank you for taking the time to watch the video and for the kind words.

[@CindyHua-x2i]

Thanks for another great video. These days I just wish SCHD share price will go up a little slower, or may be even go down a little so I can purchase more shares 😊

[@JeffTeeples]

Hey Cindy! Thanks for watching and commenting. I know exactly what you mean! With SCHD when I see red I usually fist pump and say 'YES!'. People around me probably wonder what's wrong with this guy, lol. Thanks for watching and for all your support of the channel!

[@sarfrazahmad5570]

Great video Jeff. Appreciate the clear research and explanation. Also really liked the spreadsheets you have shared. Will be using those for my personal accounts

[@JeffTeeples]

Thank you for the kind words Sarfraz. I'm glad you're getting value from these videos and the spreadsheets.

[@kev13nyc]

keep pumping out those financial informational videos Jeff!!!!

[@JeffTeeples]

Will do Kevin. Thank you for your support.

[@Sdelgado0267]

Great content. I don't see a wrong answer in any of the 3fund combo. If anything , If I was a starting investor I would chose SCHG/SCHD because of price accessibility. Also expense ratio combo is a win win.

[@JeffTeeples]

Hey Steven. Thank you for watching and for the kind words. I'm with you, SCHG/SCHD is a tempting mix with an awesomely low expense ratio and (literally) zero overlap. I've considered SCHG for a while now in my mix. Should have done it because it has been the best! (:

[@spykex9467]

@@JeffTeeples I've spent more time than I want to admit watching this video and considering what Steven said. I started investing last year (got very lucky with PLTR and SOFI), but I also hold VOO/SCHD/SCHG 1/3 each. I've thought about selling out of my VOO (won't really hit too hard on taxes) and just continuing to build up SCHG/SCHD 50/50. But if just feels weird to not have VOO so I'm very torn.

[@JeffTeeples]

I don't blame you at all for that one. I love VOO too, and hold it in my portfolio, even if the mixes have outperformed it over the past decade or two. Hard to beat the market forever. Time will tell. I don't think you can go wrong either way. Just keep adding to the 2 or 3 ETFs and stay the course. You'll get to where you want to be.

[@spykex9467]

@@JeffTeeples thank you for all the feedback!

[@Spudz89]

Hey Jeff, Would you consider doing a deep dive into QGRW? There isn't a ton of history and aside from the expense ratio I think it could be one of the best growth ETFs moving forward based on the methodology. Thanks for the great videos!

[@Thewealthyinvestor-cn3sg]

Much better than QQQ for long term in my opinion. It include financial like Visa,Mastercard,Spgi,Mco and it also include growth stocks from other stock exchanges. Something Qqq can’t do..

[@JeffTeeples]

Thanks for watching and for the idea. Absolutely I would. QGRW is on my list of ETFs to review once it gets more history. I like at least 3 years of history (really 10 is my ideal number). It will turn 2 years old this month, and I'm excited to continue tracking it. It has been fantastic so far, but again, it is early. Here is the total return since inception (12/15/2022) so far: QGRW: 101.44% SCHG: 95.64% VGT: 90.74% QQQM: 86.78% XLK: 83.97%

[@JeffTeeples]

It has done better so far. This is one I think is solid and will be tracking on the side as it develops more history.

[@Spudz89]

@@Thewealthyinvestor-cn3sg yeah I really like this one. Made it a core part of my SEP IRA.

[@karlbe8414]

Jeff, thanks, its always good to be reminded of why I am holding SCHD. I see it as downside protection, which is only really evident when the market is down. Meanwhile, I just did some simple math to see that my entire portfolio is sitting at 34.6% YTD, which beats both VOO and a 50/50 VGT/SCHD portfolio. I am thinking I am a bit tech heavy at ~47% for my age and am gradually mostly adding higher dividend stocks (BDC's and REITs) for future income. I am turning 64 this month. Also, as one that values backtesting, I just now had the thought of wouldn't more recent backtest time frames tend to be more pertinent that older/longer time frames? I guess longer time frames would do a better job of portraying cycles. Lastly, how about a comment on the best type of account for SCHD, taxable (no REIT's) or tax deferred. Best!

[@JeffTeeples]

Hey Karl. Great work with the portfolio! Back testing is powerful, and it is often times underrated because people put a lot of emphasis in 'past performance is no guarantee of future results'. This is true and literally required in the prospectus of funds. But history is what happened. That can't be overlooked. I like long-term look backs because it shows what happens in a variety of market conditions. However, short-term is good to reflect on decisions that were made in that timeline. For example, I would have been better off buying SCHG earlier this year than QQQM. Even though QQQ has a better long-term history, SCHG has been better lately. Then I need to connect the WHY of everything (holdings breakdown, methodology, etc) to the current market conditions. SCHD is great in any account type because it pays qualified dividends. I personally like my VGT and QQQM in the Roth IRA because it 'will likely' have more total gains long-term, which on balance will save the most in taxes. SCHD losses the advantage of qualified dividends in tax protected accounts. If in traditional IRA, it will still be ordinary income. Roth is no taxes at all. Really, it's preference. Anything that pays qualified dividends is great in any account type.

[@charlielipthratt7291]

Hey Karl and Jeff, one twist in the asset location question. When you start taking social security, those qualified dividends will be added to your income total to determine if your social security will be taxed. If they had adjusted those tax brackets with inflation, the majority wouldn't bump into the tax. Maybe one day. I've thought about switching to more of these growth ETFs in my taxable account since they pay smaller dividends before taking social security. Still a theory at the moment. Need to crunch a few more numbers. The standard deduction helps the calculation a bit.

[@karlbe8414]

@@charlielipthratt7291 Interesting. I just wish that it was not such a complicated game that we are forced to play. There are plenty other things that we also need to do!

[@jblack6572]

Content idea: top finance books you read this year + all time. Great video as per usual.

[@JeffTeeples]

Hey Jonathon. It's like you're reading my mind here. I was going to do videos here and there on my favorite investing books. I like those ones, and I want to share my favorites. I haven't jumped in quite yet, but I do have one on my calendar for favorite books of the year and all time. Just a quick blurb on some of my top reads. It's hard because I read a ton, and I'm not the best at taking official notes. When I look at the library it is a little overwhelming when I look for my favorites. Hopefully more to come on this one. Thank you for your extra level of support and for being a part of this community!

[@todd2456]

Cool seeing you over on Nolan's channel - Happy December!

[@JeffTeeples]

He's a good dude! I like supporting his channel and learning from his ideas. He's helping a lot of people. Random thought: One thing about investing (or anything we do in life) is to keep the ego in check. I like to pick on myself in my videos, but I do have a master's degree, used to produce financial statements (so I understand how the key metrics work), read a TON of books on the topic and watch a lot of KZbin videos. I say this not to do an awkward Internet flex, but to conclude that I'm just a person that has a lot of room to grow. He is a smart guy that is well accomplished that has a similar mindset. So many KZbinrs (and others) think they know it all and would rather cut people down instead of growing. I know this is a random rant, but it is all to say that he takes a similar approach to me in life as someone looking to grow. His channel is way bigger and he could easily say 'get out of here peon' when people like me comment, but he doesn't do that. He's beyond that and will only move up in the world (not only money but happiness as well).

[@todd2456]

@@JeffTeeples My favorites are you, Nolan and Jarrad. Although, Marko, Erin and Holy Schmidt are good too. Thanks for your content!

[@jblack6572]

@@JeffTeeples link to the Nolan video? I'm not familiar with him.

[@todd2456]

@@jblack6572 he wasn't on the show, per se, but Jeff commented on something. Investing Simplified - Professor G

[@JeffTeeples]

Hey Jonathon. Here is the link to his main channel. www.youtube.com/@NolanGouveia

[@OurRetireEarlyJourney]

Great stuff as always Jeff.

[@JeffTeeples]

Thank you for watching and for the kind words. I appreciate your continued support of the channel! Hope your journey is going well!

[@claudiatran3513]

Thank you for your quality video!!!

[@JeffTeeples]

You're welcome, Claudia. Thank you for taking the time to watch and comment. I appreciate it.

[@Shootsmith]

For growth I did FTEC (same as VGT)/QQQM/SCHG because I couldn’t decide on just one!

[@JeffTeeples]

This is a fantastic solution! I have 2 of the 3, and wouldn't be shocked if SCHG wins a spot in my growth section eventually.

[@charlielipthratt7291]

@Shootsmith - ha! I did the same thing a few years ago. It seemed impossible to know which one would "win" long term.

[@CRVgarage]

I mirrored Jeff's 2 fund portfolio & have ftec+schg for growth.

[@Piinkdolphin]

28M. Just recently getting into investing. Been thinking of going VTI, SCHG, VGT, AVUV. Thoughts on this? Too much overlap? Tech heavy? Worth holding AVUV or should I replace it for international for further diversification? Undecided on SCHD as I want aggressive growth as I have the next 30 years to invest Edit: just realized you made a video on AVUV literally an hour ago haha. Gonna go watch it!

[@JeffTeeples]

That was incredible timing. I think you'll love AVUV if you decide to add it to the mix. I like your ETF ideas a lot. You would have VTI for your base, I call it the cornerstone. This has a little bit of everything the US has to offer. VGT and SCHG are top notch growth ETFs. VGT is my favorite overall, because I'm a massive tech bull. SCHG is tied for my favorite 'multi-sector' growth ETF, along with QQQM. If you did half and half (VGT and SCHG) in your growth section, that would be great. Any tilt is fine as well, because they are both amazing growth ETFs. AVUV would hold down your value section just fine. This is where you could sprinkle some SCHD as well, if you wanted to add that one. Since you're so young you can tilt the overall balance to growth over value a little bit. I'm 42, and I have an even split of cornerstone (VOO), growth (VGT + QQQM), and value (SCHD) for perspective. But in my 20's, I would reduce SCHD and add to one of the growth holdings. VOO (or VTI) are always good for any amount (10% to 100%) based on your preferences. They are a nice mix of growth and value.

[@Piinkdolphin]

@ Man, thanks! Your reply and content have helped so much. Truly appreciate it

[@johnbeeck2540]

Thanks Jeff - sage advice as to diversifying with several funds vs. just one! I expect a major recession in 2025 so getting more conservative and just sold SCHG (for a profit). Adding high value investments that pay dividends to generate cashflow through the downturn. Using CLOFs, BDCs, Select Bonds, and other cashflow Kings. (Am very close to retirement). Like Buffett I'm building a lot of dry powder to buy when the market goes on sale. Perhaps you can evaluate some portfolio ideas for a major recession for those of us more conservative investors with little runway left.

[@JeffTeeples]

Hey John. Thank you for the positive feedback. I think you're doing a great thing because you're closer to retirement. It makes sense to create that shift towards stability and value at this point. I consider this a core change. Now, if you were 30, I would say STOP! lol. Stay the course to your target allocations that make sense for your goals long-term. I think it's important to ignore our emotions and to stick to our systems in all markets. But again, in your case, it is exactly what I would be doing (taking some profits from growth and toning down for stability in retirement).

[@joeschex5326]

Nice video! My mix for long term 50% SWPPX 30% QQQM 20% SCHD Thoughts?

[@JeffTeeples]

Hey Joe. I think that is as good as it gets! 50% S&P 500 can never be a bad thing. The growth / value mix of QQQM and SCHD is arguably my favorite. Stay the course and keep feeding that thing.

[@dennis6325]

Good video, but what would have made it excellent is discussing the selection criteria between VGT, SCHG and QQQ.

[@JeffTeeples]

Thanks for watching and for the kind words Dennis. I try to do that in some of my videos, but they tend to run long as is (: I think all three growth ETFs have rock solid selection processes. Very passive, which is great.

[@jeffho6244]

It's really tough to beat a SCHD + SCHG combo...I like to add a little bit of FTEC if I want to add extra tech.

[@tonysoprano12345]

Are you me?

[@JeffTeeples]

Hey Jeff. Most importantly, great name. Secondly, you have a great mix going there. The SCHD + SCHG combo, with a little extra tech sprinkled in (FTEC) is 'basically' what I do as well. Granted, I have a lot of bit of tech in there, haha. My desired mix is 50% SCHD + 25% VGT + 25% QQQM. FTEC and SCHG could be swapped in for very similar results. I've even considered going a third of VGT / QQQM / SCHG to 'tech down' just a little and get access to both of my favorite multi-sector growth ETFs (overlap doesn't matter with split dollars within one category). For now, I stay the course, but I think your mix is incredible as well.

[@JeffTeeples]

haha, it is a great combo!

[@timmyg000420]

You're considering selling all your SCHD? ​@JeffTeeples

[@JeffTeeples]

Oh all of the crazy things I do in life, we can lock it in now, this will *never* happen. lol

[@Optimus-Prime-Rib]

Great vid man!

[@JeffTeeples]

I appreciate you taking the time to watch the video and for dropping positive feedback. Thanks for being here.

[@CRVgarage]

Very interesting video. I think for growth its wise to go with ftec+schg combo.

[@JeffTeeples]

I love that combo. They are my favorite multi-sector (tech heavy) ETFs by quite a bit. I don't think you can go wrong with either, or both, long-term. I'm still a tech BULL to the max that prefers VGT. Not saying it is 'the right' way to go. I think any one of them, or a mix of the three, pair well with SCHD for the long-run.

[@coach9410]

Do you recommend a 50/50 split with VGT and SCHD?

[@JeffTeeples]

Thanks for the question. I don't like to 'advise' anyone on what to buy and why. For me, personally, I LOVE that mix because I'm a major tech bull. For someone that isn't quite as high on tech, I would recommend 50% SCHD + 50% SCHG or QQQM. VGT will have a bit more extremes on the highs and lows over the years. But it is still 'broad tech' that is a market cap weighted index. The passive nature makes me less afraid in the tech crashes (won't be going down with the ship, it's like the S&P 500 from a 'self-updating' perspective).

[@pingleyj]

I'm currently SCHD/SCHG/VTI with a 40/40/20 split as a soon to be 33 years old baby investor. Thoughts?

[@JeffTeeples]

Hey Joshua. Thanks for watching and for the comment. That mix is incredible. Stay the course with that for years to come and you will be a happy camper. Great mix of growth and value between the 3 top-tier ETFs.

[@wuheyou]

Hi Jeff, Just subscribed! Thank you so much for your valuable time tested work! I have been holding the VOO, SCHD, QQQ/VGT, one third of each for years. In your opinion, we can do better skipping the Market ( VOO) just by holding 50% each of dividend and growth ETFs... VOO/VTI has been a corner stone holding in my portfolio, I have not thought about what would happen without it... great point and this does get me thinking... I am I missing something here? Thanks!

[@JeffTeeples]

Thank you for watching and subscribing. I appreciate it! Great question. Technically, yes, we can drop VOO in the mix. This is because SCHD + one of these growth ETFs makes a 'VOO-like' mix from a value perspective. It is 'about the same' growth and 'about the same' value. However, I hold on to VOO because it has 100 year history of outperforming nearly everything over long-stretches of time. Yes, my personal mix (that I have used for years) has outperformed VOO each year. Literally, to this point, VOO has been an opportunity cost every single year. BUT, I still believe that VOO will outperform, or at least compete, with this mix moving forward. So far, for example, it has outperformed the 2-fund in 2024. The streak will likely be broken by the end of this month, and I took part in it by owning VOO all along. It's fine to not own it, but I like a solid, proven anchor for my portfolio.

[@wuheyou]

@@JeffTeeples Thanks so much Jeff for your reply! You are the best!

[@michaelroot1960]

I like the SCHD/SCHB combo but I also like to have a little DIA for the monthly dividend. 40/40/20 mix

[@JeffTeeples]

Thanks for watching Michael. Very nice approach there. We all have different risk tolerances and goals in investing. The main key is that we stick to our systems in all markets and stay the course long-term.

[@ericrichey-pi3vk]

I enjoyed your video. You are easy to understand without over explaining concepts. I like the idea of buying some SCHD for wealth protection during a down market, but I'm concerned about taxes from dividends. Yes, much of my assets are in a straight brokerage account. Do you have any thoughts about taxes with adding SCHD to brokerage account? Thank you!

[@JeffTeeples]

Hey Eric. Thanks for the positive feedback. I think SCHD is good in a brokerage account because the dividends are qualified and taxed as 'long-term capital gains' at favorable rates. However, if you have MANY years left and don't want the taxable event, it may be better in a tax protected account and you could put growth stuff in the brokerage. I personally like my growth ETFs (VGT and QQQM) in my Roth IRA. At the end of the day, I think they will grow more (overall, long-term), and thus save the most net dollars in the Roth. Whereas I like SCHD in my brokerage because the qualified dividends are muted in a tax protected account (they don't help at all, 100% of everything is taxed as ordinary income or not taxed at all, so the qualified dividend perk doesn't help), but they help me in the brokerage account on the long-term net numbers. Really, VOO, SCHD, VGT, QQQM, SCHG, anything that pays qualified dividends is great in any type of account.

[@soniaorrantia4269]

@@JeffTeeples Hello just questions from this comment. What are your thoughts on VYM and FTEC in a brokerage account? Are these tax efficient? I don’t plan on pulling out any time soon. Looking for growth for many years.

[@JeffTeeples]

Hey Sonia. I missed this comment. The filter system makes it tough to see replies to older posts sometimes. VYM and FTEC both pay qualified dividends and are great in a taxable brokerage account for a buy and hold investor. Thanks!

[@soniaorrantia4269]

@@JeffTeeples no worries 😉 I am just glad you responded, thank you!

[@CarlosMataShow]

per your approval... what about pairing SCHD with TQQQ (like in a tax advantaged account like HSA and Roth IRA) rebalanced annually? Thanks for the quality content!

[@JeffTeeples]

Hey Carlos. Thanks for watching and for the question. I love SCHD, but TQQQ is not my jam. I don't like 3x leverage on anything (even my favorite index in the investing world, the Nasdaq-100). But if someone wants to take the risk the reward can be exponential there. The problem with TQQQ is the sky-high 84 basis points in addition to basically having no floor when it dives. The market has been good, so it has been dominating. But when the market goes down. Instead of ouch, it is ouch cubed (:

[@RayBo]

The data is the data, and VGT wins in longer sims. The funny thing here is XLK. In longer-duration tests, XLK is the only one that gives VGT a run for the money. You made a good point here that I liked: XLK has far fewer holdings than VGT "VGT has more." 🤔 Still, SCHG has a lot less TECH; total, than either VGT/XLK. While VGT and XLK are near all TECH. QQQ and SCHG are fair comparisons, around 50%TECH, and similar in their relationship regarding the number of holdings as in XLKvsVGT. I really liked the video, but putting QQQ and SCHG up against VGT. I know they are all growth, but it is hard to beat 100% TECH given the last 15 years. Still, XLK/VGT has my vote for a ROTH.

[@JeffTeeples]

Hey Ray. I agree with your comment. I did try to separate VGT from QQQM / SCHG (in the talking head parts) but perhaps I didn't make it clear enough. QQQM is my favorite 'multi-sector growth ETF' with SCHG right there. VGT is my favorite tech only ETF, and is definitely different than the other two. Of course the data will be together when showing the results. I don't think we can go wrong with any of the 3 (or a combination within growth).

[@beardumaw24]

Why I like SCHG over QQQM or VGT is that SCHG has a much lower expense ratio and has done very well consistently for me and has zero overlap with SCHD. I may add VGT or QQQM. VGT has a lower expense ration that QQQM so it might be VGT

[@JeffTeeples]

I think SCHG is great. Don't take this the wrong way, because I don't mean it defensively, but the expense ratios are nearly negligible with these ETFs. This coming from a guy that made a video explaining why expense ratios and % based fees (including AUM) are the number one wealth killer and cost us 6 or 7 figures over our investing career. My hard rule is under 50 basis points. Just a reminder, the expense ratios *are* included in the total returns for these ETFs. Looking at the 10Y total return as of this morning we have this: VGT: 567.35% QQQ: 449.77% SCHG: 377.99% I think SCHG is awesome, and it has been the best this year. But it (basically) has nothing to do with the 6 basis points difference in the expense ratio. It's a huge factor with the actively managed (and often underperforming) funds that have high expense ratios.

[@nickscheraldi5867]

Great and timely video! I've been an SCHG fan for a while, so I tend to prefer it. The overlap between SCHG and QQQM (and VGT) was something I was always looking to reduce. So, I dropped QQQM and got back into SMH. My growth portion is 10% SCHG, 10% VGT, and 10% SMH (20% SCHD and 50% VOO rounds out the rest). I won't fret too much over the VGT and SCHG overlap ;) You briefly mentioned momentum funds in the beginning of the video. What are your thoughts on SPMO, VFMO, MTUM, etc?

[@JeffTeeples]

Hey Nick. Thanks for watching and for the comment. You have great funds there that will do well if you stay the course and never panic sell (especially the rollercoaster growth ETFs) when the market crashes. Just keep buying to the target allocations. Something about overlap. It is irrelevant with split dollars in a single category. For example, you have 50% VOO and 20% SCHD. This leaves you with 30% growth. Within the 30%, you could go 50% SCHG and 50% QQQM (just as an example). So overall this would be 15% and 15% for your growth. People will say too much overlap, but if they are both quality and you can't decide, you are technically experiencing less overlap. Let's say you went 100% SCHG (30% overall). SCHG has 100% overlap with itself, if that makes sense. Overlap is very misunderstood. If it is within a category, like growth, then it doesn't 'add overlap' to use multiple growth ETFs. I would worry more about sector balance within growth. For example, if 100% VGT (or 50% VGT + 50% FTEC, which again, is the same thing) is too much tech, I would add QQQM, SCHG, or both if you can't decide. As long as the overall growth slice is still 30% and you're happy with sector balance, there is no such thing as added overlap by splitting dollars. Overlap does matter when going cross section in the portfolio (reducing SCHD to add more growth will add weighted risk tilted to growth). I don't mind the momentum ETFs like SPMO. But they have fallen well short of the best growth over the years. I would consider them hybrid VOO / growth replacements probably. Here is the last 10 years of the one I track (SPMO) vs my favorites in growth: (and I balance out portfolio with SCHD and VOO, so I don't need it as a hybrid solution). VGT: 552.49% QQQ: 424.66% SPMO: 326.60% The problem with 'single-factor' ETFs like SPMO is that they ride waves that are unpredictable over long periods of time. When I do the HODL Factory I use multiple 'single-factor winners' to balance things out.

[@nickscheraldi5867]

@@JeffTeeples Holy cow, thanks Jeff! I really appreciate the breakdown of my comment. Yes, I was probably looking at sector balance amongst my growth portion and looked at it as "overlap". I'm definitely in it for the long haul and staying the course. Side note, I've been seeing the ETF portion of my 401K (SCHD and growth ETFs) creating a little distance from the index (S&P) portion of my account. It's fun to watch (like a horse race). Maybe I'll rebalance maybe I'll let growth "grow" ;) Thanks again for your content and comments! Keep it coming!

[@AnyangU]

Great video! Thanks! And, oh yeah, money is over-rated but freedom is not!

[@JeffTeeples]

Amen Alex! Freedom (of time) is our number 1 resource. It is something that everyone agrees on regardless of cares and interests. Let's grow!

[@amitjain3323]

Thanks Jeff, Great video again. What are your thoughts on when we consider it's top 10 holdings like Pfizer, Verizon, Altria, Cisco, and Bristol Myers. If an investor were to purchase these stocks individually today, many would likely criticize it as a "dividend trap" portfolio ? If we keep looking at other holdings also then many seems to carry substantial debt loads and face potential dividend cuts. What are yours and other people's thoughts on this ?

[@JeffTeeples]

Hey Amit. I think a lot of newer investors definition of a 'dividend trap' has changed in the recent bull market. In hindsight, we all wish we had 100% growth in the past decade. Blue chip dividend stocks, in general, have felt like a 'opportunity cost'. The benefit will be floor stabilization in a crashing market. I don't view SCHD as a dividend trap at all, personally. Under 4% yield and over 11% dividend growth rate since inception doesn't seem shaky to me. However, it has been a lot less sexy than growth players. I love the yearly reconstitution that takes place to get rid of anything that doesn't meet the standard anymore.

[@spykex9467]

VOO, SCHD/DGRO SCHG/QQQM, AVUV. My roth is a little simpler with VTI, VGT, IBIT. Id like to simplify my brokerage with just VOO/SCHG/SCHD/AVUV...but i like all the ETFS.

[@JeffTeeples]

Hey Matt, I genuinely love every ETF you mentioned there. You legitimately covered all of my favorites without having any beyond that. Stay the course and keep building that thing up over the years!

[@spykex9467]

@ thanks I appreciate it!!

[@etutlf4176]

Great video as always! How did you compute the PE ratios of the combos?

[@JeffTeeples]

Thank you for the positive feedback. Portfolio visualizer does the math for me. The expense ratios are calculated into the total returns there. SCHG is the king of low expense ratios (of the 3 growth ETFs I like).

[@kaydenkwon5345]

Jeff how much impact would the difference between expense ratio have between SCHG VGT QQQM in a $1M portfolio?

[@JeffTeeples]

This is a great question. VGT would be $1,000 per year. QQQM would be $1,500. SCHG would be $400. Quite a difference with a big portfolio! Something to consider is that these expenses are already included in the total return figures. This isn't an additional fee from what I showed in the video.

[@Billmcneil-y1u]

How do you feel about VUG? Im currently 30/30/30 SCHD/VUG/VTI 10 to the bank for dips and what not

[@JeffTeeples]

Hey Bill. I think VUG is a solid growth ETF. I love your mix. Stick with that and you will do well over long periods of time.

[@vitaliygoldin5423]

My mix 20% each in my portfolio VOO, VGT, QQQM, SCHD

[@enonknives5449]

And the last 20%?

[@vitaliygoldin5423]

@@enonknives5449 5% VBR, 5% PLTR, 5% AMD, 3% TSLA, 2% SOUN

[@JeffTeeples]

Fantastic mix! And I see you filled in the other 20% below (also very solid).

[@vitaliygoldin5423]

@@JeffTeeples thank you!

[@kabakasinclair6890]

Schd and schg the kings

[@JeffTeeples]

I think you're onto something here. It is a killer combo with zero overlap. Hard to beat that solid mix that 'basically' makes a VOO from a value perspective.

[@markb9764]

Great video as always! What are your thoughts on FTEC as a growth ETF? I'm leaning towards SCHG because VGT is more than I can afford right now, but FTEC seems to be right in the middle.

[@JeffTeeples]

Hey Mark. Thanks for watching and leaving a comment. I appreciate you being a long-time channel member and part of the community. FTEC is great. It is identical to VGT in that it follows the same index. The price of ETFs isn't relevant if your broker offers fractional shares (putting $50 into VGT and FTEC will be identical). But if your broker doesn't allow fractional shares, which is putting in a dollar amount and getting a partial share, then FTEC may allow you to get your money working quicker. Here are the total returns the last 10 years for VGT and FTEC (variance will be management timing of rebalancing and things like that, again, the holdings are identical). This is net of fees: VGT: 552.49% FTEC: 539.84% SCHG is fantastic if you want a fund that isn't solely dependent on technology. I like SCHG and QQQM the best for 'that'.

[@markb9764]

@@JeffTeeples thanks! SCHG it is :)

[@ActiveDutyRealtor]

For my kids (4 & 2) I have custodial accounts and do: 40% SCHX 40% SCHG 20% SCHD

[@JeffTeeples]

Love it. Your kids are going to be so happy when they are old enough to understand this stuff! That is a nice mix that leans to growth over value (exactly as it should at that age). Just keep buying in over many years and ignore what the market swings are looking like. Great work!

[@ActiveDutyRealtor]

@ thanks Jeff. Hope all is well.

[@CSE6242-c3j]

Does it make sense to hold SCHD in a taxable account?

[@JeffTeeples]

I think SCHD is great in a taxable account. When held in a Roth or Traditional it gets zero advantages (by comparison) for the qualified dividends. Roth is never taxed, so you want the VGT or QQQMs of the world (lots of long-term gains to recognize for free forever, want the most total return). A traditional IRA ultimately turns qualified dividends into ordinary income when you take it out. Only the taxable gets the 'comparative advantage' for SCHD. It's like the logic of JEPQ in a Roth, but the opposite version. Remember, when you reinvest $100 of dividends of SCHD in a taxable account, you will never pay taxes on that base amount again. It is not taxed twice like people say. It is taxed once at the special long-term capital gains rate. When you reinvest $100, you have a zero dollar gain. Your cost basis went up by $100 along with your value. It is the same concept, long-term of 'long-term capital gains' (think 4% rule).

[@brooks5962]

Thoughts on VTI over VOO VTI-VGT-SCHD Also what is your thought in VUG?

[@JeffTeeples]

Hey Brooks. I think VTI is a fine replacement for VOO. They have been very similar over the past century. Can't go wrong with either. VUG is solid, but I would recommend SCHG or QQQM to replace it. They have a similar sector mix, and have consistently performed better over the years. But VUG is very solid.

[@lindsaynewell6319]

Closing in on retirement so I'm shifting to SCHD + SCHG + 8-10 income ETFs.

[@JeffTeeples]

Love that combo. It keeps you in some growth because that's always nice, even in retirement, but it rightfully shifts your focus to more income producing assets. I wish you well in retirement!

[@pnvsatya]

Great video… what’s the best ratio to invest in VGT & SCHD every week/every month… for example $100 every week?

[@JeffTeeples]

Thanks for watching the video and for the kind words. I personally like a 50/50 mix of VGT and SCHD (so $50 each for your example). Then with new dollars, I buy the one that is lower at the time to get it 'back up' to 50%. I'm in my 40's. A younger person may want more VGT, and someone closer to or in retirement will likely prefer more SCHD. It depends on each individual person, but half and half is a great default mix.

[@patric5076]

Hi there. I just found your channel. Thank you for your video. I'm in the process of doing a 3 ETF retirement portfolio. About your 2 ETF portfolio, do you recommend the same ETFs for someone that wants to retire in 5-7yrs? Or would you recommend something less volatile?

[@JeffTeeples]

Hey Patri. Thank you for watching and for the question. This is really random timing, because I literally just made a video that details my investing plans for 2025 now that I'm 5-7 years from retirement (: I think it will vary from investor to investor, but 'generally speaking' you'll want to scale back the growth holdings and add a bit more value. In my case, more SCHD (or in my Roth JEPQ) and less VGT and QQQM. Now, I think 5 to 7 years is still enough time for me to 'mostly' keep it the same at this point with minor transitional moves. I'll go into a bit more depth in my video on 1/19/2025 (there will be a portfolio update and a dividend growth update before that video).

[@joshuamatkin8306]

Can you comment on the high yield ETFs TLTW and VPC? Also what is your opinion on IWY growth ETF?

[@JeffTeeples]

Hey Joshua. I'm not a fan of TLTW and VPC personally. I think there are far better ways to increase cash-flow over time via the compound effect of things like SCHD or DGRO. Takes a while to bolster the 'yield on cost', but I would roll with something like JEPQ for the higher yield (in a tax protected account ideally) instead of those. I think IWY is a solid growth ETF. I prefer something like QQQM or SCHG for a multi-sector growth ETF over it. But it is very solid and one of the 10 or 15 growth ETFs I track monthly and consider a good investment. I personally roll with a combo of VOO, QQQM, and VGT for growth.

[@clarenceknight9745]

What are your thoughts on SPLG? If you don't mind.

[@JeffTeeples]

Hey Clarence. Thanks for watching and for the question. I think SPLG is an awesome S&P 500 ETF. It is a fine replacement for VOO, SPY, IVV, or any other ETF to track the S&P 500.

[@clarenceknight9745]

@JeffTeeples thanks for the reply, I appreciate it.

[@xcentriquehub]

Hey Jeff, thanks for the breakdown ---- was doing contracts and some side hustles, i just started investing this year -- as i live in Ireland, I have invested in FWRA, VUSA -- now i am thinking of dividend ETF, we dont have SCHD, you have any alternatives for us Europeans ? Thanks looking at JEQP & UDVD)

[@JeffTeeples]

Thank you for watching and for taking the time to leave a comment. I don't know a lot about non-US ETFs unfortunately. I don't want to make up an answer that pretends I know what I'm talking about. The only ones I know with direct international exposure are the broad ETFs like VXUS, SCHY, VT, etc.

[@МЕГАПоЗиТИВ-й2е]

I have a silly question: What about staying in VOO and just adding SCHD? The three growth ETFs at the end of the video are great but this crazy growth has got to stop, I really want to concentrate on value+dividend paying stocks. But I don't want to sell the existing VOO which is the main part of my portfolio. So why not just VOO+SCHD ?

[@JeffTeeples]

Thanks for watching and for the question. I think VOO + SCHD is a great combination! It won't have the long-term upside without the growth, but it will do much better in the sharp correction periods. And you still get a nice slice of the big tech companies with VOO. I love this combination for retirement scenarios.

[@yadfgp]

I think the main reason why VGT outperformed QQQ and SCHG so much is because it's so much more heavily weighted towards Apple and Microsoft. VGT captured all those early gains from those 2 companies back when they were much lower caps. So because of that I would definitely prefer either QQQM or SCHG.

[@JeffTeeples]

Hey Steve. Thanks for watching and for the comment. I think Apple and Microsoft are solid examples of what have helped VGT, but remember, it is cap weighted for the tech sector. For example, lately it has been NVDA that has helped it continue to outperform QQQM. Apple and Microsoft have actually weighted down, a lot, in the past couple years. This happens passively no differently than how VOO works. They aren't 'over-exposed' to any specific company as it adheres to cap weights. It operates similarly to QQQM and SCHG (passively managed, cap weighted). I'm not saying you're wrong, and I think going with SCHG or QQQM is a more balanced approach. But Apple and Microsoft work the same in all of these ETFs. They are just a bigger piece of tech only is the overarching point. They weren't 'proportionally' more in VGT relative to the other companies by size. It's more 100% tech vs 50% tech.

[@yadfgp]

@@JeffTeeples Hey! Yea VGT is just to top heavy for me in those 2 stocks. Great channel! And thanks! :)

[@charlielipthratt7291]

​@@JeffTeeples- thanks for breaking that down for us

[@fitbh703]

Motivational video as always Jeff. Do you have any thoughts on IYW as a growth etf option? (Expense ratio is a bit higher) after I did a performance tracker analysis. Seems to perform the same as VGT and xlk pretty much.

[@JeffTeeples]

Thank you for watching and for leaving a comment. IYW is very solid. It performs right on par with VGT and XLK over the years. It is one I have tracked over the years on a spreadsheet alongside my other favorites. I do slightly prefer VGT for the lower expense ratio. But I think a buy and hold on IYW is great, too.

[@JMIJMI-p4t]

Hi Jeff, Great video! So basically going with one of those growth ETF with SCHD is similar to go with VOO only? Or not really because with the mix I will receive more dividends because of SCHD?

[@terrycoye3373]

If I’m getting Jeff’s point correctly, SCHD + growth ETFs similar to VOO, but better. And note that he is reinvesting all of the dividends, as well as adding more money each month.

[@JeffTeeples]

You got it. Going with a growth ETF for 50% is replacing 'about half' of VOO (it is about half growth). Going with SCHD as a value ETF is replacing 'about half' of VOO (it is about half value). We're building a similar mix from a PE ratio, growth vs value, risk, and other perspectives. Again, VOO is great, and it will sometimes perform better (like this year so far). The way to outperform it, long-term, is to beat it at its own game (from a mix perspective). Going 100% growth or Bitcoin may make you the king for a year or two, but it is not a way to succeed long-term. Too many people try to 'randomly' beat the market with their gut picks. It nearly always gets out of balance without a system.

[@JeffTeeples]

You nailed it (:

[@Steve_SEC]

Would you consider VB for growth instead of SCHG for example?

[@JeffTeeples]

Hey Steve. I would consider VB as a 'small-cap' VOO before I would consider it growth. It is a healthy mix of value and growth, much like VOO is. The difference is that it is small cap companies instead of large cap. I think it's fine to remove some 'VOO' or 'VTI' if you want to add VB. Or it could be its own category too (something like 30% cornerstone, 30% growth, 30% value, 10% VB).

[@longbowrider]

Good Job!!

[@JeffTeeples]

Thank you for watching and dropping a positive comment. I appreciate it!

[@d.s.9011]

First, I want to say thank you for your content and analysis. Do you think a small-cap fund will find a place in your portfolio? I am also deciding between just VOO and SPTM since SPTM is S&P 1500 which includes S&P 500 + 400 + 600. I only feel comfortable holding 3 funds and my other two are SCHD and QQQM. It's easier to keep track and balance. Should I replace VOO with SPTM or have VOO + mid-cap + small+cap fund. I feel like I wouldn't do as good of a job handling those 3 funds instead just have SPTM and let smarter people than me balance that fund.

[@JeffTeeples]

Shoot, I just typed a long response that disappeared. Come on KZbin! lol. Thank you for the kind words and the great question. I think small cap (small-cap value to be specific) is going to have a nice run in the future. Again, I have no idea when, but historically it has dominated the S&P 500 as we look back many, many decades. And it has been a rough go lately for small cap, and even small cap value. I'm happy without it in my portfolio at the moment. Not saying it's bad, but I don't like to make core changes to chase trends (that I think will happen) if it wasn't a part of my system in the first place. Never say never, but for now I'm okay without small. I would probably stick with VOO over SPTM. SPTM is so close on returns, it is basically a hybrid between VOO and VTI. I've always been a VOO guy here, but you can't go wrong with any of them. I wouldn't sell one to get the other, personally. If you want SPTM instead, there is nothing wrong with that at all. I don't think either decision will move the needle long-term.

[@d.s.9011]

@JeffTeeples Yes, I agree. For a fund like VTI, mid and small cap only dragged the performance while not contributing anything really. SPTM has actually an index it follows and only profitable companies are included and rebalanced quarterly. I am kinda torn between SPTM and VOO. Either are good choices really.

[@d.s.9011]

I had some time to think since your last comment. Yes, just VOO is better. Trying to have one ETF do it all and have the same performance as S&P 500 is impossible. SPTM falls short by like .50% on average every year is not much but it adds up after years. The only thing worth noting is much lower price of SPTM if you can't but fractional shares.

[@Investmiz]

Hi Jeff, what are your thoughts about some income from REITs? Specifically O realty?

[@JeffTeeples]

Hey Idan. I've never been a fan of REITs, personally, but a lot of smart people like them to help diversify a portfolio. I think O is one of the best out there. It consistently grows the dividends (albeit not like quality businesses within SCHD) over the years. It has been beat up lately, so investors have been able to accumulate more shares per dollar investing.

[@ZacXEat0n]

Just curious what if you went all in on VOOG? Would it be the same?

[@JeffTeeples]

VOOG is a solid growth ETF. I do think it falls a bit shore of the others, but it isn't bad by any stretch. Quick figures on 10 year total return for comparison: VGT: 566.12% QQQ: 449.77% SCHG: 378.81% VUG: 342.77% VOOG: 317.40%

[@ZacXEat0n]

@ thank you for responding. If I can be honest I’m 33 and just starting a Roth IRA. I have the money to max out for 2024 and 2025 now. I was wondering should I be worried about inflation or just get the money in for building compound interest? I was thinking doing the 50% SCHD AND 50%VGT. I was hoping you could have some advise I’ve never really invested before

[@JeffTeeples]

33 is waaaaay earlier than many people find this investing stuff. You're future will be bright if you stay the course. I think that is a great mix (I've used it for years). I would probably recommend SCHG or QQQM as the growth piece to start if you want something a little more diverse. Now I love VGT, but I'm a tech bull and I believe in the future of tech. If you're the same, 50/50 VGT/SCHD is great. If you like tech, but want a little variety with your growth, you could do 50 SCHD / 50 SCHG or 50 SCHD / 50 QQQM. Or you could do a combination of the growths as well. 50 SCHD / 20 VGT / 15 QQQM / 15 SCHG (just as an example). I don't think you can go wrong with any of them as long as you stay the course when the market crashes. That is the last time you want to sell. At that point, just keep buying more shares. These ETFs ALWAYS 'eventually' hit new all-time highs (: It's all about accumulating those shares.

[@ZacXEat0n]

@@JeffTeeples thank you for breaking it down for me. It’s a little bit nerving but I’m finally trying to plan for my future. I feel like since I have the $ I should throw it in and worry about DCA later in 20- 30 years I don’t think it will make a difference

[@sultanahmed3854]

This is very useful - thank you! I was wondering if I could replace VGT with FTEC to pair with SCHD. They seem to have very similar profiles and holdings. But FTEC has slightly lower expense ratio and smaller bid-ask spread.

[@JeffTeeples]

Thanks for watching and for the question. Absolutely. FTEC is a fine replacement for VGT. It will give you (basically) the exact same results.

[@sultanahmed3854]

Thank you for your efforts. I have started consolidating some of my holdings accordingly.

[@davidwan685]

I recently retired. I am 27% JEPQ, 72% IVV, 1% SCHG. Does going to 37% SCHG, 36% SCHD and staying at 27% JEPQ makes more sense? Great video. Make me think more 🎉

[@JeffTeeples]

Hey David. Congratulations on retiring (: IVV will be 'roughly' the same as 50/50 SCHD+G. I personally like the SCH combo a little better, but it won't move the needle tooooooo much in retirement. This year, IVV has been slightly better than all of the combinations in the video. I do feel the 2-fund combos will (slightly) beat IVV long-term. Either way, you're set up nicely! I will say that the SCH combo will provide higher and more consistently growing dividends.

[@friedpickles342]

I'm sitting on about 200,000 I'd like to know what is the best approach. I'm 45 years old should I lump sum everything into dividend ETFs or should I lump half of it and use the other half for a down on a house

[@JeffTeeples]

Oh man, you hit me with a tough on there, haha. Thank you for watching and for the question. I'll give the cop-out answer here of 'it depends'. It really does depend on ones situation. I can't speak to the house part for your situation, but I will say that I would use a hybrid strategy to get into the market. I would probably lump sum about half into my target allocations (after thinking about what I want and why). Then I would dollar cost average the rest in on a weekly or monthly basis over 6 to 12 months. Time in the market beats timing the market, BUT, it is at a high valuation right now. So I would play it with a balanced approach.

[@friedpickles342]

I've always been under thé impression that home ownership is too priority. Which is why it's in the equation for me. Unfortunate I'm trying to find a place in California. I may just have to leave the state altogether just so I could cash buy a home n keep the majoring for investment. ​@@JeffTeeples

[@Colorado_Native]

Which program are you using to compare holdings? It issn't etfrc is it?

[@JeffTeeples]

I use Seeking Alpha to get the top 10 holdings and sector percentages, and the fund overlap website to compare weighted overlap. Love these tools.

[@stockscrypto101]

which site is that for comparing etfs and stocks?

[@JeffTeeples]

Thanks for taking the time to watch the video. I use Seeking Alpha to compare total return on specific date ranges. Then I use portfolio visualizer for the back-test (specific scenarios).

[@michaelswami]

Could go back further if you used the DJ index SCHD is based on. Not exactly because of lack of expenses on the Dow index, but very close.

[@JeffTeeples]

Hey Michael. That is a good call. I've done it as much as possible in my research, but don't have a clean and easy way to show the results. I plan to build this new history forward with a yearly video. We'll be to 15 and 20 years before we know it (: Maybe I'll get around to piecing together a comprehensive look back in the future.

[@jimd1617]

thank you 🤝

[@JeffTeeples]

Thank you for taking the time to watch the video and for leaving a comment.

[@maximizemoney5694]

What was the website you used to compare etfs

[@JeffTeeples]

Thanks for watching and commenting. I use these sites: Total return comparison and other key metrics: Seeking Alpha Backtests: Portfolio visualizer (can only look back 10 years with free version) Portfolio weighted overlap: www.etfrc.com/funds/overlap.php

[@Ali-tt9vn]

Hi Jeff, why is the P/E ratio of SCHD so low at 5-6? Dont you think its a little alarming

[@JeffTeeples]

Hey Ali. Thanks for watching and for the comment. The P/E ratio of SCHD is around 18 right now. I think 5 or 6 would be a bit weird. Value is great and all, but that would be a little too much value (:

[@Ali-tt9vn]

Thanks Jeff, i just rechecked in Yahoo Finance, the P/E for SCHD currently being showed is 5.55

[@JeffTeeples]

Sometimes sites get goofy with metrics based on temporarily inaccurate variables in the equation. I've seen Seeking Alpha do some weird things too. I can assure you it is not 5.55.

[@Ali-tt9vn]

Thanks for your answer

[@Ayobussa]

What if we did schd, jepq, and vgt @33% ea. Would this be a modern all weather fund?

[@JeffTeeples]

Thanks for watching and for the question. I think that mix would work well over long-periods of time. It is 67% growth indexes (JEPQ is basically the same as QQQM before the premium income, the underlying holdings are based on the Nasdaq-100), so the key would be staying the course and not panic selling on a major growth (specifically tech) pullback. I'm going to add JEPQ to my Roth in the near future. I definitely think you're on to something here. We just need to be patient during the hard times when everyone else is smashing the sell button.

[@leebruce6400]

Hi，Jeff, could you tell me which tool is able to show the historical trend chart of PE of any ETF? Thank you very much

[@JeffTeeples]

Hey Lee. Thanks for watching and for the question. I will commonly use yahoo finance to look up a single ETFs trailing twelve month PE ratio for a quick answer. I'm a fan of portfolio visualizer when it comes to looking up a lot of ETFs and back testing them against one another (it has PE ratio within the information). Also, sometimes yahoo finance will have goofy results (it will show SCHD as 5 or something). Portfolio visualizer back tests have always been accurate in my usage over the years.

[@JeffreyReed-p2o]

No mention of expense ratios. SCHG has by far the lowest. How does that play into returns long term?

[@JeffTeeples]

Thanks for watching and for the comment. The expense ratios are 0.04% for SCHG, 0.10% for VGT, and 0.15% for QQQM. I didn’t go into all the details in this one as it was already fairly long, but the expenses are included in the backtest and total returns from the video.

[@fosfool3773]

VGT costs so much more per share than the others so, with the others you can afford SO MANY more shares. How does that factor into growth?

[@Sanloong7]

Share amounts do NOT matter at all. $10k invested means $10k invested regardless of u having 10 shares or 1000 shares.

[@JeffTeeples]

Hey there. Share price does not matter at all for growth and performance. @Sanloong nailed it below. The only time it matters is if you are in a brokerage account that does not allow you to invest fractional shares. For example, if you only had $200 to invest, you could buy one full share of FTEC, but couldn't buy a single share of VGT. These track the exact same index. However, if your brokerage allows fractional shares, then you could put exactly $200 into either of them and it will be the exact same holdings.

[@HenryLopez-uw6hy]

So we’re not doing a 3 fund portfolio anymore?

[@JeffTeeples]

Hey Henry. Nobody has to do the 3-fund portfolio. I will be sticking with mine for sure, personally. In my mid 40's I'm 33.3% each of cornerstone (VOO), value (SCHD), and growth (VGT + QQQM). Others like a 1-fund (VTI), 2-fund, 3-fund, 4-fund (add bonds), 5-fund (real estate), 6-fund (small-cap), etc. Not for me personally, I'm a 3-fund guy.

[@HenryLopez-uw6hy]

What do you think about FTEC as a growth etf to pair with SCHD?

[@rigo.garcia]

I’m liking capitol group CGGR for growth recently for flexibility down the road but not liking the expense ratio lol.

[@JeffTeeples]

Hey Rigo. 39 basis points is creeping up there a little bit. But my hard cap for considering ETFs and tracking them long-term is 50 basis points. Of course, the lower the better. I'll be curious to see how this one does moving forward.

[@ljrockstar69]

MGK and VONG, are great growth ETFs as well.

[@JeffTeeples]

Thanks for the comment. I agree! Both of these growth ETFs are solid and I have them on my (fairly selective) ETF compare tool for tracking them over time.

[@Rob-on-the-go]

Comparing those old timelines of data is not helpful. SCHG is hands down better for the last few years, proving that they now have the best methodology. I'll stick with the latest data. I think SCHG and SCHD is the perfect combo. But thanks for the comparison! We truly appreciate it!

[@JeffTeeples]

Hey Rob. I agree with you that SCHG is great, and it 'could' be the best moving forward. Nobody knows. I respectfully (strongly) disagree with longer timelines being less relevant. We *ALWAYS* want as much data as possible when comparing like ETFs. The more macro reactions the better. It shows what happens when 'this' or 'that' takes place. Something that is new (none of these) may look REALLY good if it is based on a factor that has shined in the past 1 or 2 years (its entire life). But as soon as things swing (think momentum, or growth vs value, etc, something that is imbalanced) the full story will be unpacked. Always grab as much data as possible to compare any investments. It's never a bad thing. Again, moving forward, things can be different of course, but it still helps to have 100 years of history over 4 (for an extreme example). Because the 4 years is within the 100. I think SCHG is a great choice, so I'm not arguing that aspect (:

[@the_real_MarcGyver]

Ill stick with schg for the way lower expense ratio compared to vgt and qqq

[@JeffTeeples]

Thanks for watching. I think that is a great solution for long-term success. SCHG is a great ETF that has sneakily been the best of the bunch in recent years. It may continue that momentum forward.

[@share101]

I like schd+schg

[@JeffTeeples]

You have yourself an amazing 1-2 punch right there. Great combo. Keep accumulating shares and stay the course.

[@share101]

@@JeffTeeples i will mix it schd, (schg+vgt)

[@zacharyphelan]

Let's see a list of all the books you have read. Lost off the top 10-20 for people to take a look at. Keep in mind most of us have read a lot of the most popular books. 😊

[@JeffTeeples]

Hey Zachary. This is the major problem for me, you nailed it. I read a lot. A lot a lot. But I've always had a hard time recommending books to other people. I don't mind dry and boring as long as I'm learning, but I don't trust my taste will be transferable to the masses. I think a top 10 or 20 list would be a great idea. However... I do a terrible job of tracking that list even for myself, lol. This is part of the problem. I don't know that I even have a 'top list' of books. I like reading all types of things. I'll go to the drawing board.

[@genorgeanaplaszio1246]

Jeff I wrote you in the comments months ago and am back. Hope you’re well. I had a good year overall but last two months, just stuck. Today I lost to a 2% drop of the XLU. It had been going up for weeks but undone just today. I’m gonna switch to your Voo Vgt SCHD tripartite. I guess XLU wasn’t one to trust. Wish me good returns….

[@JeffTeeples]

Hey Genorge. Great to hear from you again. I think you'll be happy, long-term, with the 3-fund portfolio that you are considering. Best wishes!

[@GothDuck]

What about SCHD, DRGO, and SCHG together?

[@JeffTeeples]

Hey Matthew. I think all 3 ETFs are fantastic and they will work well together. DGRO is a nice hybrid for value, dividends, and growth. Then the other two are incredible for what they do.

[@DrMediterranean]

So how about 50/50 but the growth 50% is split evenly between SCHG, QQQM, and VGT?

[@tonysoprano12345]

Check out FTEC over VGT - 0.08% ER vs 0.10% for VGT

[@JeffTeeples]

I think this is a great idea. I've actually been considering it (as I tech down a touch getting closer to retirement, about 7 years away). Overlap is not an issue 'within a category' like that. Any ETF has 100% overlap with itself. I say this because some people will say 'WHY HAVE QQQM and SCHG' thinking it adds overlap within the growth category. It doesn't, and your idea is great.

[@JeffTeeples]

FTEC is solid. 2 basis points is more or less nothing. The fund management timing will have a greater impact. I trust the Vanguard name and assets under management, personally, but both will get the exact same thing. 10-year total returns (net of fees): VGT: 552.49% FTEC: 539.84% I'm not saying this makes VGT 'better', but I wouldn't sweat 2 basis points over 'little things' personally.

[@loakland2773]

Thanx Jeff. Looks good. Sounds good. Hold them all. Might be a possibility of my wife’s company downsizing so we may have to rollover her 401k monies if that happens. Trying to mentally navigate that transition in preparation. I’ll likely buy a little of all those mentioned and currently hold. She’s still too young to collect from her IRA w/o penalty. Thanks for another great video. I hope you and the family have a great week ahead. Be well. Go Trailblazers.

[@JeffTeeples]

Hey Lance. I did a Roth conversion last week for about $90k of QQQM that was in my traditional IRA. I did the 'in-kind' conversion that kept my shares of QQQM and moved them over (instead of having to sell in traditional, and then re-buy in Roth). I don't know if this is relevant or helpful, but I figured I would throw it out there. I want to make a video about my Roth conversion planning soon (more detailed than the last one). My wife and I decided to rip the Band-Aid off and get mine over with before she retires. I'll explain why in the video. Thanks for watching and for leaving a comment. I wish you and your wife the best! PS: I just realized I misread your post. You will have to sell the positions in the 401k and roll the money over. Then you'll buy the new positions. You got it down. I'll leave my first answer for additional (albeit random) context, lol.

[@BlackDiamondWoodCraft]

What about JEPI & JEPQ?

[@JeffTeeples]

Thanks for watching and for the question. I like JEPI and love JEPQ (which I hold) for the transition to retirement, or in retirement. But I strongly prefer VOO or QQQM for the accumulation phase. No need to cap growth potential before getting into wealth preservation mode. I make lots of videos about them, but not for the 'beating the market over many years' vibes.