Schwab US Dividend Equity ETF (ARCA: SCHD)

最新ニュース Schwab US Dividend Equity ETF (ARCA:SCHD)

Schwab US Dividend Equity ETF

Industrials

Healthcare

Financial Services

Technology

Consumer Defensive

Consumer Cyclical

Energy

Communication Services

Basic Materials

Utilities

Other

To pursue its goal, the fund generally invests in stocks that are included in the Dow Jones U.S. Dividend 100 Index. The Dow Jones U.S. Dividend 100 Index is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, excluding real estate investment trusts (REITs), master limited partnerships, preferred stocks and convertibles. It is modified market capitalization weighted.

Lockheed Martin Corp

Abbvie Inc.

Home Depot Inc/The

Blackrock Inc.

Amgen Inc.

Cisco Systems, Inc.

Coca Cola Co.

Texas Instruments Inc

Chevron Corporation

Pfizer, Inc.

<a href="https://www.benzinga.com/markets/25/01/43239447/62-year-old-earning-up-to-120-000-in-dividends-shares-8-stock-picks-i-lived-below-my-means-there-isn">Dividend shares</a> and high-yield funds are among the most popular investment vehicles people choose to rely on for a consistent payout or to grow their money.
One of the most talked about dividend-oriented ETFs is Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), which tracks the Dow Jones U.S. Dividend 100 Index.&nbsp;
SCHD is known for its focus on high-quality, dividend-paying U.S. companies, making it a go-to fund among investors seeking reliable <a href="https://www.benzinga.com/markets/25/01/43005162/dividend-investor-retired-at-39-living-off-dividend-income-shares-his-top-4-stocks-its-absolutely-do">income</a>. But is it a smart move to allocate a considerable portion of your portfolio to SCHD? This question lies at the heart of a recent Reddit post that sparked a lively debate among the board&#8217;s users.
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The poster is an investor who has already allocated $100,000 to SCHD, another $100,000 to Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), and has also bought some individual stocks. His end goal is to build a portfolio that generates dependable income in the long run without taking risks.
&#8220;Is it stupid to put in that much into SCHD instead of spreading it, or? I just want a safe place to keep it that is better than a money market account or [high-yield savings account],&#8221; the poster wrote.
He also mentioned he&#8217;s a bit concerned about the long-term performance of SCHD since he&#8217;s planning on investing for 20 more years and is also considering diversifying into other assets like real estate investment trusts or other dividend-focused stocks but isn&#8217;t sure this is necessary.
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The Reddit community offered the poster insights in the comments, so let&#8217;s dive right in.
<h2 class="wp-block-heading">20-Year Investment Plan? Reddit Debates As Investor Pours $100,000 Into SCHD</h2>
SCHD is a Solid Choice for Long-Term Dividend Growth
Many Redditors praised SCHD as a reliable ETF for long-term dividend growth, especially for investors not willing to make risky moves.
&#8220;Putting $100,000 into SCHD and letting it go to work for 20 years–that is the epitome of smart investing,&#8221; a comment reads.
&#8220;Seems like you are seeking low-risk monthly income. SCHD is fine,&#8221; another Reddit user said.
One commenter agreed with the poster&#8217;s approach and shared that he would sleep well at night if he had the same allocation.
&#8220;Not stupid at all. It&#8217;s a fine investment and will pay you to wait during market downturns. Personally, I have about 30% of my portfolio in bond ETFs for diversification, but I could sleep well at night with an allocation like yours too,&#8221; he said.
Another Redditor echoed the above comment but also mentioned that the fund should double the dividends every few years with a dividend reinvestment plan.
&#8220;Yeah, it's a solid place to park $100,000. My portfolio looks really similar, I have no trouble sleeping at night. SCHD dividend growth should allow your dividend to double every 6 to 7 years with DRIP,&#8221; he wrote.
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Consider Diversifying to Mitigate Risk
While most commenters were on board with the poster&#8217;s allocation to SCHD, some Reddit investors suggested he diversify a bit further to mitigate risk.
&#8220;It is not stupid. However, I might suggest you consider 50% in SCHD and 50% in [Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schg#NYSE">SCHG</a>)],&#8221; a comment reads.
One Reddit user recommended the investor allocate a part of his portfolio to non-U.S. assets to hedge against any rotations of U.S. stocks.
&#8220;I guess the only obvious downside, besides being all in stocks, is that it&#8217;s very U.S.-centric. While U.S. stocks have been the place to be for 20+ years, there are no guarantees that this will continue. I have some money in [Vanguard Total International Stock ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vxus#NYSE">VXUS</a>)] as a hedge against any rotations out of U.S. stocks. Not a lot–maybe 5-7% of my portfolio,&#8221; the user said.
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Another Redditor touched on international exposure, implying that such an allocation would enhance his portfolio resilience.
&#8220;I agree you should put the $100,000 and let it sit. You can let that sit and anything you invest outside of that, start to diversify. Someone said SCHG as well. That would be another good goal to set, just to get some international holdings. I would mix an international ETF and some dividend stocks in there. When you're older you could shift into bonds, higher dividend yield stocks, and keep SCHD if the dividend payout is significant enough,&#8221; his comment reads.
&#8220;It&#8217;s not stupid at all. I would suggest diversification in your portfolio though, so don&#8217;t make that 100% of your investment strategy,&#8221; another Redditor wrote.
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Personal Finance

SCHD

SCHG

VXUS

Stupid 20-Year Investment Plan? Investor Questions $200,000 Dividend Strategy – 'Is It Stupid To Put In That Much Into SCHD?'

<a href="https://www.benzinga.com/markets/25/01/43005162/dividend-investor-retired-at-39-living-off-dividend-income-shares-his-top-4-stocks-its-absolutely-do">Dividend</a> investing has long been a favorite strategy for those seeking a reliable <a href="https://www.benzinga.com/markets/25/02/43679558/how-this-39-year-old-with-no-college-degree-built-passive-income-streams-that-pay-18-000-per-month">passive income</a> stream, especially as they approach <a href="https://www.benzinga.com/personal-finance/25/02/43768114/im-66-still-working-maxing-out-my-401k-and-could-retire-next-year-should-i-stop-saving-for-retirement-and-start-living">retirement</a>. By investing in dividend-paying stocks or ETFs, individuals can generate stable earnings while potentially profiting from capital appreciation.
Compared to growth-focused investments, the yield generated is often lower. Instead, this approach offers more safety and fewer risks and is a favorite of risk-averse investors.
In a recent Reddit post, a user shared his ambitious retirement plan: at 50, the investor has decided to put $3,000 a month into the Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) to accumulate close to $1 million in 10 years.
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His main objective is to generate $25,000 annually in dividends, which, alongside his $2,000 monthly Social Security benefits, would provide him with a comfortable retirement income of around $4,000 per month, a good sum since he&#8217;s considering retiring to a low cost of living country like Mexico or Southeast Asia.
The investor is focused on SCHD, and despite his confidence in the ETF, he is open to feedback and alternative strategies, as he wants to ensure his plan is realistic.
His post has received a ton of advice and suggestions, so let&#8217;s dive right into that.
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<h2 class="wp-block-heading">$25,000/Year in Dividends With SCHD? Redditors Weigh In</h2>
Adjust Your Expectations
In an overwhelming majority, the Redditors who commented below the investor&#8217;s post agreed that the expectations he set were too high, so he needs to either adjust these or rethink his strategy.
&#8220;You'll reach half your goal if you're lucky in 10 years. Use a compound interest calculator and run numbers,&#8221; a Redditor wrote.
&#8220;Your calculations are wrong. $3,000/month for 10 years with 7% interest is $516,000," another comment says.
A user underscored the impact of inflation on the investor&#8217;s retirement income, calculating the yearly dividends he would get with his investment.
&#8220;At 10% returns, you will be just shy of $600,000. With a 3.5% yield, you will be looking at about $21,000 per year in dividends. This is not adjusted for inflation. Inflation-adjusted 7% return will get you $500,000. With a 3.5% yield, you will be looking at about $17,500 per year in dividends. It will help if you can increase the contributions for at least the first 5 years and do it for 12 years instead of 10 till you are 62 years of age,&#8221; he said.
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Look Into Alternative Strategies and Diversify
Several users advised the poster to diversify his portfolio beyond SCHD to achieve his aim because while SCHD is a solid choice for dividend income, the fund may not provide the growth needed to reach $1 million in 10 years.
&#8220;If you want income in the shortest period of time you should look for a fund with a higher yield such as [NEOS S&amp;P 500 High Income ETF (CBOE: SPYI)] 11% yield, [NEOS Nasdaq-100 High Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqqi#NASDAQ">QQQI</a>)] 13%, or [Putnam BDC Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pbdc#NYSE">PBDC</a>)] 9%; Keep [Vanguard Total Stock Market ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vti#NYSE">VTI</a>)] and drop SCHD,&#8221; a Reddit user suggested.
This comment recommended the poster use a balanced approach by combining three ETFs.
&#8220;Maybe add a blend like a 3-fund portfolio. 50% SCHD, 25% [Vanguard S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voo#NYSE">VOO</a>)], and 25% [Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schg#NYSE">SCHG</a>)]. Work on compounding SCHD but get some growth and then convert it into SCHD in retirement,&#8221; the comment reads.
Another user advised the poster to move his money into a higher-yield asset as he approaches retirement.
&#8220;I had to reread your goal. My estimate is you will have around $600,000 in 10 years. Making $21,000 off of that is very easy to do if you move to a higher dividend fund like [JPMorgan Equity Premium Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jepi#NYSE">JEPI</a>)]/[JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jepq#NASDAQ">JEPQ</a>)] or SPYI. My average dividend income of $500,000 is $38,000 minus taxes. So well above what you expect. As you get closer to ten years, start moving into preferred stock or income funds mentioned above,&#8221; the user suggested.
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JEPI

JEPQ

PBDC

QQQI

SPYI

50-Year-Old Pours Cash Into SCHD, Plans Early Retirement Overseas – 'I'm Trying To Make About $25,000/Year In Dividends, Is This A Bad Idea?'

<a href="https://www.benzinga.com/trading-ideas/25/02/43827291/exclusive-will-trumps-tariffs-hurt-or-help-stock-market-59-say-this">Tariffs</a>, elevated mortgage rates, and the cost of maintaining a home amid soaring insurance and energy costs have caused pessimism amongst the home builders tasked with adding housing inventory.
The information comes from the National Association of <a href="https://www.benzinga.com/25/01/43246599/bofa-downgrades-dr-horton-and-smith-douglas-citing-cost-pressures-and-weak-roe-outlook">Home Builders</a><a href="https://www.nahb.org/news-and-economics/housing-economics/indices/housing-market-index"> NAHB</a>/Wells Fargo Housing Market Index, which tracks builders&#8217; confidence in single-family homes based on a monthly survey. February marked the lowest confidence level in five months.
<h2 class="wp-block-heading">Tariffs</h2>
According to NAHB,<a href="https://www.nahb.org/advocacy/top-priorities/material-costs/how-tariffs-impact-home-building"> 7%</a> of all goods used in new residential construction originate from a foreign nation. &#8220;With 32% of appliances and 30% of softwood lumber coming from international trade, uncertainty over the scale and scope of tariffs has builders further concerned about costs,&#8221; NAHB Chief Economist Robert Dietz said on its website.
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NAHB Chairman Carl Harris<a href="https://www.nahb.org/-/media/NAHB/advocacy/docs/letter-to-president-potential-tariffs-013125.pdf?rev=4f33c6137e9846b1866e4692241d2a1d&amp;hash=C2AEFB98FFB519145B3C4DF50296B2B8"> sent a letter</a> to President Donald Trump urging him to exempt &#8220;critical construction materials&#8221; from his tariff policies.
&#8220;Imposing additional tariffs on these imports will lead to higher material costs, which will ultimately be passed on to home buyers in the form of increased housing prices,&#8221; he said in the letter dated Jan. 31.
<a href="https://www.corelogic.com/intelligence/will-trump-tariffs-harm-home-affordability/#framing-affordability">CoreLogic</a>, a real-estate data company, estimates that the higher costs of building materials could add between $17,000 and $22,000 to the cost of building an averagely priced newly constructed home, which is currently about $422,000.
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<h2 class="wp-block-heading">Interest Rates</h2>
Lower interest rates could have made the Trump tariffs easier to digest. However, despite optimism last year for a series of <a href="https://www.benzinga.com/25/01/43319060/first-rate-cut-in-june-if-at-all-in-2025-economist-says-as-federal-reserve-holds-rates-steady">interest rate cuts</a>, stubborn inflation has caused the Fed to keep rates where they are, which is currently just below 7%, too high to move the needle on home buying.&nbsp;
&#8220;It will take people longer to buy homes as they wrestle with affordability,&#8221; Holden Lewis, home and mortgage expert at NerdWallet told<a href="https://www.marketwatch.com/picks/mortgage-rates-will-pull-back-4-pros-predict-where-mortgage-rates-will-go-in-february-2025-5e015a1c"> MarketWatch</a>. &#8220;As homes linger on the market, the inventory of for-sale homes will keep rising. This increase in supply will diminish upward pressure on prices. Home prices will rise this spring, but not as swiftly as they rose in the past.&#8221;
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<h2 class="wp-block-heading">Insurance</h2>
Compounding the effect of tariffs and interest rates is the soaring cost of <a href="https://www.benzinga.com/personal-finance/25/02/43728496/with-insurance-maintenance-costs-and-rising-home-prices-suze-orman-says-its-ok-to-just-rent">homeowners insurance</a>, particularly in disaster-prone states, as most recently seen with the LA wildfires. According to<a href="https://home.treasury.gov/system/files/311/Analyses_of_US_Homeowners_Insurance_Markets_2018-2022_Climate-Related_Risks_and_Other_Factors_0.pdf"> figures</a> released by the US Treasury Department for 2018-2022, insurance premiums have risen sharply across the country, with people living in the greatest climate-driven risks experiencing the steepest rises. Those in the top 20% of riskiest places for such perils paid, on average, 82% more than those in the 20% lowest climate risk zip codes.&nbsp;
This year,<a href="https://www.bankrate.com/insurance/homeowners-insurance/homeowners-insurance-cost/"> Bankrate</a> showed that the national average cost of home insurance is $2,258 per year for a policy with a $300,000 dwelling limit. —amounting to about $188 per month, a<a href="https://www.cnbc.com/select/homeowners-insurance-skyrocketing-how-to-lower-premium/"> marked increase</a> on the preceding two years.
The<a href="https://www.wsj.com/economy/housing/home-insurance-property-tax-vs-mortgage-cost-43ab76ed"> Wall Street Journal</a> calculated that insurance and taxes make up more than half of the monthly mortgage payment for 9% of single-family mortgages, up from less than 4% at the end of 2014. Adding tariffs and increased construction and home prices to the mix makes homeownership more difficult than ever for many Americans.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today.<a href="https://smartasset.com/retirement/find-a-financial-planner?utm_source=benzinga&amp;utm_campaign=ben&amp;utm_content=y2_5MilNestEgg"> SmartAsset&#8217;s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost</a> to decide which one is right for you.
<h2 class="wp-block-heading">Looking For Higher-Yield Opportunities In A Shifting Market?</h2>
The changing interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified <a href="https://www.benzinga.com/money/benzingas-favorite-high-yield-investments">some of the most attractive options for you to consider</a>.&nbsp;
For instance, the <a href="https://www.benzinga.com/go/equitymultiple-yf">Ascent Income Fund</a> from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. <a href="https://www.benzinga.com/go/equitymultiple-yf">Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only)</a>.
Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. <a href="https://www.benzinga.com/money/benzingas-favorite-high-yield-investments">Check out Benzinga's favorite high-yield offerings.</a>&nbsp;

Real Estate

DGRO

SPYD

Tariffs, Mortgage Rates, And High Housing Costs Have Caused Builders To Change Strategy On New Home Construction

A TikTok <a href="https://www.tiktok.com/@proudunionguy/video/7471336532293553451">video</a> by Proud Union Guy is getting a lot of attention for calling out &#8220;bootlickers&#8221;—those who defend corporate profits over fair wages and labor rights. The video has sparked intense discussions and over a thousand comments on Reddit and TikTok from people venting their grievances and experiences.
<h2 class="wp-block-heading">What's A Bootlicker?</h2>
According to Proud Union Guy, a &#8220;bootlicker&#8221; is someone who sides with corporations at the expense of workers. For example, he says that if you think record corporate profits are fine but get upset when <a href="https://www.benzinga.com/news/24/10/41303608/hundreds-of-hilton-hotel-workers-strike-at-seattle-airport-demand-higher-wages-and-reversal-of-covid">workers demand higher wages</a>, you might be a bootlicker. If you believe staying late without pay proves dedication instead of being exploited, same deal.&nbsp;
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Other signs include blaming high prices on worker pay instead of <a href="https://www.benzinga.com/government/24/05/38724294/biden-says-hes-already-turned-economy-around-blames-corporate-greed-for-persistently-high-inflation">greedy companies</a>, thinking unions have too much power while ignoring how big businesses control everything, or getting mad at workers on strike instead of the companies paying them unfairly.
<h2 class="wp-block-heading">Workers Are Weighing In</h2>
The video quickly took off, with many viewers agreeing and sharing stories of coworkers who fit the description. One <a href="https://www.reddit.com/r/UnitedAssociation/comments/1ippfvp/we_all_know_somebody_that_would_flunk_this_quiz/">Reddit</a> user commented, &#8220;I bet we all know a guy or two working after hours doing paperwork or taking phone calls.&#8221; Another pointed out, &#8220;My foreman at my last job told my partner and I that we should be grateful to have a job. Kind of funny since the only reason he was a foreman was through nepotism.&#8221;
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One worker said, &#8220;Way too many trumpy guys in the unions voting for our own downfall because they've been poisoned by social media propaganda,&#8221; expressing their annoyance at coworkers who vote against their own interests. One user even &#8220;outed&#8221; their son as a bootlicker saying, &#8220;My dumbass kid is one of them. Funny thing is, I&#8217;m non-union ([International Brotherhood of Electrical Workers] is weak af where I live) but he&#8217;s [United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada]. He drank the Kool aid and voted against his own self interests, despite me trying to talk him out of it. Now he&#8217;s all pissed because he feels lied to. I tried to tell ya kiddo.&#8221;
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<h2 class="wp-block-heading">Not Everyone Agrees</h2>
While the video got a lot of support, not everyone was on board. Some critics mocked the TikToker's delivery, pointing out his sunglasses, clean gear, and toothpick as signs of trying too hard. Others argued that unions sometimes protect <a href="https://www.benzinga.com/25/02/43723246/meta-faces-backlash-as-laid-off-workers-say-they-were-unfairly-targeted-despite-strong-performance-records">underperforming workers</a>, sharing their own negative experiences. A few even questioned the term &#8220;bootlicker,&#8221; noting that billionaires don't wear boots, so maybe &#8220;Italian shoe licker&#8221; would be more accurate.
Whether you agree with Proud Union Guy or not, the debate over labor rights and fair pay isn't going away. With corporations <a href="https://www.benzinga.com/government/regulations/25/02/43596413/corporate-americas-best-earnings-in-3-years-will-tariffs-end-wall-streets-honeymoon">raking in record profits</a> while many workers struggle, conversations about who benefits from the system—and who defends it—are bound to continue.
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<li><a href="https://www.benzinga.com/money/arrived-centennial">Jeff Bezos-Backed Arrived Homes Hits A Big Sale On Charlotte Property – Investors Earning A 34.7% Return</a></li>
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News

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NVDA

'Are You A 'Bootlicker?' Viral Video Lists The Signs Of A Corporate Bootlicker, And People Are Calling Out Their Coworkers

Tesla (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) is one stock that has skyrocketed from its beginning stages, leaving many wishing they got in on it from the start. One woman recently called "The Ramsey Show" for financial advice regarding her Tesla stock, which grew to an astonishing amount from her initial investment.&nbsp;
Her dilemma? Whether to cash out and pay off her mortgage or hold onto the stock because, in her words, "Nobody knows what Tesla&#8217;s capable of."
<h2 class="wp-block-heading">From $1,000 to $380,000 in Tesla Stock</h2>
The caller explained that she invested $1,000 in <a href="https://www.benzinga.com/25/02/43686887/teslas-stock-climbs-nearly-3-in-thursday-pre-market-as-analyst-predicts-growth-in-ev-ai-and-robotics">Tesla stock</a> in 2011, in the company's early stages. Over the years, without adding any additional money to her investment, the stock surged, reaching upwards of $380,000. She and her family now owe $288,000 on their home and are weighing the benefits of selling the stock to become mortgage-free.&nbsp;&nbsp;
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<li>Can you guess how many retire with a $5,000,000 nest egg? <a href="https://www.benzinga.com/money/5mil-nest-egg-adv">The percentage may shock you</a>.</li>
<li>‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. <a href="https://www.benzinga.com/money/mode-mobile-2">You can invest today for just $0.26/share with a $1000 minimum.</a></li>
</ul>
Financial expert <a href="https://www.benzinga.com/personal-finance/25/01/43276105/trumps-tax-plan-could-slash-social-security-benefits-33-by-2035-ramsey-show-host-george-kamel-weighs-in">George Kamel</a>, a host on "The Ramsey Show," was impressed by the caller's success. "What?" he reacted in shock, before confirming that she had truly turned just $1,000 into hundreds of thousands of dollars without adding more funds to the investment.
<h2 class="wp-block-heading">The Risks of Holding a Single Stock</h2>
While acknowledging the incredible return, Kamel advised the caller to be cautious. He emphasized the risks associated with keeping such a large portion of wealth in a single stock, even one as well-known as Tesla. "As soon as you can get that house paid off and get out of a single stock, the better," he said.
His advice aligns with common financial principles: diversifying investments can help protect against market downturns. Tesla's stock, like any other, is subject to volatility. Holding onto the stock means exposure to potential price swings that could reduce the value of her gains.
Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing —<a href="https://www.benzinga.com/money/boxabl"> you can become an investor for $0.80 per share today.</a>
<h2 class="wp-block-heading">The Role of Taxes in the Decision</h2>
One of the biggest factors to consider in selling such a large stock position is the tax implication. Kamel advised the caller to consult a tax professional before making any moves. Since the stock's value has increased significantly since she bought it, selling would trigger <a href="https://www.benzinga.com/news/25/02/43669470/im-so-sorry-dave-ramsey-left-speechless-after-hearing-the-capital-gains-tax-a-canadian-restaurant-owner-would-owe-if-he-sold-his-business">capital gains taxes</a>. Depending on her income and how long she has held the stock, the tax bill could be substantial.
Instead of selling all at once, Kamel suggested an alternative approach: selling off portions of the stock gradually over a few years. This strategy could help reduce the overall tax burden by spreading the gains across multiple tax years, potentially keeping her in a lower tax bracket.
<h2 class="wp-block-heading">Can Her Income Cover the Mortgage Instead?</h2>
Another consideration is the caller's household income. She shared that her family is earning $275,000 annually, which is a strong financial position. Kamel's advice implies that, with such a high income, they may be able to aggressively pay down the mortgage without relying entirely on the Tesla stock sale.
See Also: If there was a new fund backed by Jeff Bezos offering a <a href="https://www.benzinga.com/money/arrived-private-credit-fund">7-9% target yield with monthly dividends would you invest in it</a>?
<h2 class="wp-block-heading">What Should She Do?</h2>
Ultimately, the decision rests on her financial goals and risk tolerance. Paying off the mortgage would provide security and eliminate monthly payments, but holding onto the stock could yield further gains—though with added risk. Consulting a financial and tax professional could help her determine the best course of action based on her specific situation.
For investors who find themselves in a similar position, the key takeaway is clear: while big gains in the stock market can be life-changing, careful planning is essential to ensure those gains translate into lasting <a href="https://www.benzinga.com/personal-finance/24/02/36957443/the-majority-of-americans-dont-feel-financially-secure-and-believe-they-need-to-earn-233-000-a-y">financial stability</a>.
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<li>Many are using retirement income calculators to check if they&#8217;re on pace —<a href="https://www.benzinga.com/money/how-do-i-calculate-my-retirement-income-adv"> here&#8217;s a breakdown on what&#8217;s behind this formula.</a></li>
<li>Deloitte's fastest-growing software company partners with Amazon, Walmart &amp; Target – <a href="https://www.benzinga.com/money/mode-mobile-2">Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!</a></li>
</ul>

MSTY

NVDY

PLTR

QQQM

SMCI

TSLA

Should She Cash Out? Woman Who Turned $1,000 Into $380,000 In Tesla Stock Asks The Ramsey Show For Guidance

As Trump tariffs take another spin through Mexico and Canada, investors are left navigating an increasingly <a href="https://www.benzinga.com/topic/tariffs">complex trade landscape</a>. 
While the long-term economic impact remains "indeterminate for both the U.S. and others," Sam Rines, macro strategist at WisdomTree, sees this as a pivotal stress test for economies and supply chains that have hardened over the past six years.
<h2 class="wp-block-heading">Mexico &amp; Canada: The First To React To Trump Tariffs</h2>
In a <a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">swift diplomatic maneuver</a>, Mexico and the U.S. have reached what Rines calls "a détente of sorts." It may not be a full-fledged trade agreement, but it's enough of a political win for Trump to delay and reassess.
Canada has also<a href="https://www.benzinga.com/25/02/43450261/trump-trudeau-strike-border-security-deal-tariffs-on-canada-paused-for-at-least-30-days"> reached a temporary agreement</a> with the U.S., while the EU is bracing for its turn in the trade spotlight. Interestingly, "India (and others) are not being mentioned in the same context," a nod to Prime Minister Narendra Modi's past alignment with Donald Trump.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43432736/copper-stocks-on-shaky-ground-jpmorgan-analysts-say-tariffs-deepseek-cloud-outlook">Copper Stocks On Shaky Ground, JPMorgan Analysts Say: Tariffs, DeepSeek Cloud Outlook</a>
<h2 class="wp-block-heading">Dividend Payers Take Center Stage</h2>
So, who benefits from a protracted tariff skirmish? "The winners in a prolonged trade and tariff skirmish are U.S. domestically focused businesses," Rines notes, pointing to value stocks with limited exposure to trade volatility.
Dividend payers stand out as particularly "attractive," with Rines emphasizing their resilience over buyback-heavy firms. Those companies prioritizing stable income distribution are likely to emerge as the "biggest winners."
<h2 class="wp-block-heading">ETFs To Watch</h2>
For US investors looking to capitalize, ETFs such as the Vanguard Dividend Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>), iShares Select Dividend ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DVY#NASDAQ">DVY</a>), the WisdomTree U.S. High Dividend Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHS#NYSE">DHS</a>) and the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DGRW#NASDAQ">DGRW</a>) could offer exposure to resilient, dividend-paying U.S. firms. 
Those betting on an America-first trade boom might look at Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) for companies committed to consistent payouts.
Rines leaves no doubt that this turbulence is far from over: "America First economic policies are seizing the attention of the markets… this is not going to abate in the near future and neither will the consequent volatility." Investors should buckle up, as the tariff rollercoaster shows no signs of slowing.
Read Next: 
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<li><a href="https://www.benzinga.com/government/regulations/25/02/43437906/constellation-brands-most-exposed-name-as-trump-tariffs-go-live-analysts-advise-adjusting-prices">Constellation Brands &#8216;Most Exposed Name&#8217; As Trump Tariffs Go Live: Analysts Advise Adjusting Prices</a></li>
</ul>
Photo: Chip Somodevilla/Shutterstock.com

Analyst Color

Government

Macro Economic Events

Regulations

Broad U.S. Equity ETFs

Dividends

Specialty ETFs

Economics

Analyst Ratings

Trading Ideas

ETFs

DGRW

iShares Dow Jones Select Dividend Index Fund

Dividend Stocks Could Be 'Biggest Winners' As Trump's Trade Moves Shake Markets: WisdomTree Expert

Investment giant&nbsp;BlackRock, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) stock is trading higher after the company&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b42996688/blackrock-reports-full-year-2024-diluted-eps-of-42-01-or-43-61-as-adjusted-fourth-quarter-2024-dil" rel="noreferrer noopener">reported&nbsp;fourth-quarter&nbsp;results</a>.
Revenue grew 23% year over year to&nbsp;$5.68 billion, beating the consensus of&nbsp;$5.53 billion.&nbsp;
Investment advisory, administration fees, and securities lending revenues increased to&nbsp;$4.4 billion&nbsp;from&nbsp;$3.6 billion&nbsp;a year ago, led by higher organic base fee, the impact of market beta on average AUM and, around $230 million of fees related to AUM acquired in the GIP Transaction.
Technology services revenue rose to&nbsp;$428 million&nbsp;from&nbsp;$379 million&nbsp;the prior year, led by the successful onboarding of several new clients.
BlackRock stated that net inflow stood at&nbsp;$281 billion&nbsp;in the quarter and $641 billion in 2024.
Total AUM stood at&nbsp;$11.6 trillion at the end of the year compared to $10.0 trillion in 2023.
Adjusted operating income rose&nbsp;36%&nbsp;Y/Y to&nbsp;$2.33 billion, with the margin expanding to&nbsp;45.5%&nbsp;from&nbsp;41.6%&nbsp;a year ago.
Adjusted EPS increased&nbsp;23%&nbsp;Y/Y to&nbsp;$11.93,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$11.21.</a>
BlackRock repurchased shares worth&nbsp;$1.6 billion in the year.&nbsp;
Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42984073/banks-kick-off-earnings-season-on-wednesday-retail-traders-bet-big-on-financials-ahead-of-regulatory-tailwinds" rel="noreferrer noopener">Banks Kick Off Earnings Season On Wednesday: Retail Traders Bet Big On Financials Ahead Of Regulatory Tailwinds</a>
Laurence D. Fink, Chairman and CEO, said,&nbsp;&#8220;Client activity accelerated into the fourth quarter, resulting in 7% organic base fee growth and 12% technology services ACV growth.&#8221;
In December 2024, the company disclosed a definitive agreement to acquire&nbsp;HPS Investment&nbsp;Partners&nbsp;<a target="_blank" href="https://www.benzinga.com/24/12/42296768/blackrock-makes-12-billion-power-move-acquires-hps-to-bolster-private-credit-offerings" rel="noreferrer noopener">for around $12 billion</a>.
This transaction strengthens BlackRock&#8217;s offerings for insurance clients. The deal is expected to increase private markets fee-paying AUM and management fees by 40% and 35%, respectively, and be modestly accretive to BlackRock&#8217;s as-adjusted earnings&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">per share in the first full year post-close</a>.
Fink added, &#8220;Our record organic growth and financial results do not yet reflect the full integration or pending acquisitions of the high-growth businesses of GIP, HPS and Preqin. And we&#8217;ve steadily made organic investments ahead of structural trends that we expect to drive outsized growth in the years ahead.&#8221;
Investors can gain exposure to the stock via&nbsp;Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) and&nbsp;Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: BLK shares are up 2.38% at $986.12 premarket at the last check Wednesday.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/25/01/42910264/trump-fallout-blackrock-exits-climate-alliance-cites-regulatory-pressure-and-client-confusion" target="_blank" rel="noreferrer noopener">Trump Fallout? BlackRock Exits Climate Alliance, Cites Regulatory Pressure And Client Confusion</a></li>
</ul>
Photo by rafapress on Shutterstock.

Earnings

Equities

Large Cap

Movers

FDFF

BlackRock Q4 Earnings: Record Inflows Fuel Revenue And Earnings Beat, AUM Hits $11.6 Trillion Milestone

The Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) has given back more than half of its one-year gains in the last month, with the ETF falling more than 7% in December. Here's a look at what may be <a href="https://www.benzinga.com/24/12/42528079/this-high-yield-dividend-etf-is-undergoing-a-harsh-reversal-signaling-bearish-trends-here-what-you-need-to-know">plaguing the fund. </a>
What To Know: The Schwab US Dividend Equity ETF is heavily weighted in the healthcare sector with four pharmaceutical stocks representing 15.83% of the fund's total holdings. The sector has underperformed recently as increased uncertainty emerged surrounding the potential appointments and <a href="https://www.benzinga.com/general/biotech/24/11/41822473/trumps-potential-health-czar-robert-f-kennedy-jr-rattles-vaccine-stocks-shoot-first-reaction">policy changes</a> that could come under President-elect Donald Trump.&nbsp;
Read Next: <a href="https://www.benzinga.com/general/social-media/24/12/42598651/mystery-drone-sightings-all-over-the-country-trump-says-what-to-know-about-investigations-lawmakers-reactions">&#8216;Mystery Drone&#8217; Sightings Spark Investigations, Politicians Respond: &#8216;Shoot Them Down,&#8217; Trump Says</a>
<h2 class="wp-block-heading">Healthcare Holdings</h2>
Bristol-Meyers Squibb Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>) is the fund's top pharmaceutical holding, representing 4.64% of its assets. The stock is down 2.6% over the past month. 
Pfizer, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) is also in the fund's top 10 holdings. It fell more than 5% following the presidential election as the vaccine-maker faces an uncertain political and regulatory environment ahead. 
AbbVie, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) and Amgen, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>) round out the dividend-focused fund's healthcare holdings.  AbbVie shares are down slightly, though Amgen shares are down by more than 10% in December following disappointing <a href="https://www.benzinga.com/content/42377651/amgen-stock-falls-on-weight-loss-drug-data-overreaction-or-fair">clinical trial </a>results from its weight-loss drug candidate, MariTide. 
Interest Rates: Another factor that could be affecting the Schwab dividend-focused fund is the uncertain interest rate environment. Dividends tend to become more attractive to investors in a low-interest rate environment. Recent comments from the Federal Reserve suggest a more hawkish outlook with inflation remaining sticky and above the Fed's target rate of 2%.&nbsp;
Additionally, the incoming Trump administration could again play a factor as Trump has pledged to raise tariffs on foreign imports which could reignite inflation and lead to interest rates staying higher for longer.&nbsp;
When interest rates are high, the yields on bonds and other fixed-income securities become more competitive, making dividend yields less appealing by comparison.&nbsp;
Read Next:&nbsp;
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<li><a href="https://www.benzinga.com/24/12/42653466/honda-nissan-plan-to-merge-in-the-face-of-chinese-ev-competition">Honda, Nissan Confirm Merger Plans To Offset Chinese EV Competition: How Mitsubishi Factors In</a></li>
</ul>
Image: Shutterstock

Biotech

Health Care

Politics

General

ABBV

AMGN

Schwab US Dividend Equity ETF Reverses In December: What's Going On?

According to the daily charts, this <a href="https://www.benzinga.com/etfs">exchange-traded fund</a> with a high dividend yield of 3.67% has been under pressure as it has fallen below its short-term moving averages in the oversold territory.
What Happened: Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), which has an expense ratio of 0.06% and pays an annual dividend of $1.05 has declined 3.20% over the last month, as of Monday&#8217;s close. The ETF made its last dividend payment on Dec. 16, for the current year.
From a technical perspective, the analysis of daily moving averages indicates that the ETF may be under pressure in the short term.
The ETF ended at $27.87 apiece on Monday. This was below its eight and 20-day simple moving averages, of $28.30 and $28.82, respectively. As per <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>, its current price was also lower than the 50-day moving average at $28.65.
However, the stock was above its 200-day moving average of $27.15, which implies that it could still be in a long-term uptrend while it is testing fresh support levels near the average value.
This trend combined with a relative strength index of 31.22 could mean that the ETF must be experiencing a bearish short-term trend but a price reversal is possible as it is near the oversold levels.
There is a possibility that the ETF is taking a breather and it could stage a strong comeback. Historically, stocks and other assets often retreat after rising to a crucial level and then bounce back.
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-1024x576.png" alt="" class="wp-image-695645" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
See Also: <a href="https://www.benzinga.com/analyst-ratings/price-target/24/12/42513306/elon-musks-tesla-nearly-5-times-more-expensive-than-industry-average-stock-surges-over-60-since-election">Elon Musk&#8217;s Tesla Nearly 5 Times More Expensive Than Industry Average: Stock Surges Over 60% Since Election</a>
Why It Matters: When compared to its peers, the Schwab U.S. Dividend Equity ETF has the highest dividend yield for the least amount of expense ratio, <a href="https://www.nasdaq.com/market-activity/etf/schd/dividend-history">according to Nasdaq&#8217;s data</a>.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Dividend ETFs </td>
<td>Expense Ratio </td>
<td>Dividend Yield </td>
<td>Annual Dividend</td>
</tr>
<tr>
<td>Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) </td>
<td>0.06% </td>
<td>3.67% </td>
<td>$1.058</td>
</tr>
<tr>
<td>Vanguard High Dividend Yield Index Fund ETF Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VYM#NYSE">VYM</a>) </td>
<td>0.06% </td>
<td>2.58% </td>
<td>$3.404</td>
</tr>
<tr>
<td>iShares Core Dividend Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGRO#NYSE">DGRO</a>) </td>
<td>0.08% </td>
<td>2.54% </td>
<td>$1.6123</td>
</tr>
<tr>
<td>iShares Core High Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HDV#NYSE">HDV</a>) </td>
<td>0.08% </td>
<td>4.23% </td>
<td>$4.9179</td>
</tr>
<tr>
<td>SPDR S&amp;P Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SDY#NYSE">SDY</a>) </td>
<td>0.35% </td>
<td>2.27% </td>
<td>$3.1408</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"><a href="https://www.nasdaq.com/market-activity/etf/schd/dividend-history">Source: Nasdaq</a></figcaption></figure>
However, on a year-to-date basis, Schwab U.S. Dividend Equity ETF has the poorest performance when compared to its peers.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Dividend ETFs </td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Schwab U.S. Dividend Equity ETF</td>
<td>9.04%</td>
</tr>
<tr>
<td>Vanguard High Dividend Yield Index Fund ETF Shares </td>
<td>17.32%</td>
</tr>
<tr>
<td>iShares Core Dividend Growth ETF </td>
<td>17.14%</td>
</tr>
<tr>
<td>iShares Core High Dividend ETF </td>
<td>10.77%</td>
</tr>
<tr>
<td>SPDR S&amp;P Dividend ETF</td>
<td>9.44%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: Google Finance</figcaption></figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/commodities/24/12/42502069/gold-poised-for-its-best-year-in-a-decade-while-bitcoin-surges-analysts-eye-2025-as-a-golden-era-for-precious-metal-amid-michael-saylors-push-for-btc-as-a-reserve-asset" target="_blank" rel="noreferrer noopener">Gold Poised For Its Best Year In A Decade While Bitcoin Surges: Analysts Eye 2025 As A Golden Era For Precious Metal Amid Michael Saylor's Push For BTC As A Reserve Asset</a></li>
</ul>
Image Via Shutterstock

Technicals

Markets

This High Yield Dividend ETF Is Signaling Bearish Trends: Is Trouble Brewing?

Each week,&nbsp;Benzinga's Stock Whisper Index&nbsp;uses a combination of proprietary data and pattern recognition to showcase five stocks that are just under the&nbsp;<a href="https://www.benzinga.com/topic/stock-whisper-index" target="_blank" rel="noreferrer noopener">surface and deserve attention</a>.
Investors are constantly on the hunt for undervalued, under-followed and emerging stocks. With countless methods available to retail traders, the challenge often lies in sifting through the abundance of information to uncover new opportunities and understand why certain stocks should be of interest.
Read Also:&nbsp;<a href="https://www.benzinga.com/top-stories/24/10/41150827/exclusive-top-20-most-searched-tickers-on-benzinga-pro-in-september-2024-where-do-tesla-nvidia-apple" target="_blank" rel="noreferrer noopener">EXCLUSIVE – Top 20 Most-Searched Tickers On Benzinga Pro In September 2024 – Where Do Tesla, Nvidia, Apple, DJT Stock Rank?</a>
Here&#8217;s a look at the Benzinga Stock Whisper Index for the week of Nov. 1:
Agilent Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/A#NYSE">A</a>) saw increased interest from investors during the week, which comes ahead of several potential catalysts. The life sciences and diagnostics company is set to report fourth-quarter financial results on Nov. 25 and host an analyst day on Dec. 17. Recent <a href="https://www.benzinga.com/quote/A/analyst-ratings">analyst activity</a> on the stock saw Barclays maintain an Underweight rating while raising the price target from $135 to $145. Evercore ISI maintains an In-Line rating while raising the price target from $135 to $145. The stock was up over 3% in the last five trading days as shown on the <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1">Benzinga Pro chart </a>below. It remains down around 2% year-to-date in 2024.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1001" height="462" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143840/Screenshot-227.png" alt="" class="wp-image-626124" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143840/Screenshot-227.png 1001w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143840/Screenshot-227-300x138.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143840/Screenshot-227-768x354.png 768w" sizes="(max-width: 1001px) 100vw, 1001px" /></a></figure>
Trade Desk (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTD#NASDAQ">TTD</a>) saw increased interest from investors ahead of third-quarter financial results, which are set for Nov. 7. Analysts expect the company to report earnings per share of 39 cents and revenue of $619.8 million, compared to earnings of 33 cents per share and revenue of $493.3 million in last year's third quarter. Trade Desk has beaten earnings per share estimates in seven of the last eight quarters and beaten revenue estimates from analysts in more than 10 straight quarters.
Wedbush analyst Daniel Ives <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41144914/meta-trade-desk-amazon-digital-ad-titans-set-for-strong-2025-growth-tech-analyst-sa">recently highlighted </a>the growth potential for Trade Desk in the third quarter.
&#8220;Our survey showed accelerating growth for TTD in 3Q versus 2Q,&#8221; Ives said.
Trade Desk's <a href="https://www.benzinga.com/news/earnings/24/08/40267737/the-trade-desk-stock-climbs-after-better-than-expected-q2-results">second-quarter results</a> saw a customer retention rate of over 95%, continuing a 10-year streak. With potential strong growth and AI initiatives being integrated, the stock could generate some buzz with its third-quarter results.
The stock was down slightly over the last five days, but is up around 70% year-to-date.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="997" height="499" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143856/Screenshot-228.png" alt="" class="wp-image-626125" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143856/Screenshot-228.png 997w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143856/Screenshot-228-300x150.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143856/Screenshot-228-768x384.png 768w" sizes="(max-width: 997px) 100vw, 997px" /></a></figure>
Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) made the list for the first time. The Stock Whisper Index typically highlights only stocks and leaves the ETFs out. But each week, ETFs like the SPY, QQQ and sometimes other well-known ETFs see rising interest based on volatility. Schwab tracks the Dow Jones U.S. Dividend 100 Index. It offers investors exposure to some of the largest U.S. companies that pay dividends and have a strong track record of paying out dividends. Top holdings in the ETF include Bristol Myers Squibb, Blackrock, Cisco Systems, Home Depot and Chevron.
With rising global tensions, macroeconomic uncertainties and the 2024 presidential election leaving some investors on edge, the ETF could be seeing increased interest thanks to its dividend income and positions in blue chip companies.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="999" height="512" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143913/Screenshot-229.png" alt="" class="wp-image-626126" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143913/Screenshot-229.png 999w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143913/Screenshot-229-300x154.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143913/Screenshot-229-768x394.png 768w" sizes="(max-width: 999px) 100vw, 999px" /></a></figure>
Reinsurance Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>): The life and health reinsurance company saw increased interest over the week likely due to quarterly financial <a href="https://investor.rgare.com/news-releases/news-release-details/reinsurance-group-america-reports-record-third-quarter-results">results</a>. The company reported third-quarter earnings per share of $6.13 and revenue of $5.65 billion, beating Street consensus estimates according to Benzinga Pro. Reinsurance Group's third quarter had record financial results. The strong quarter could put the stock on investors radar for future growth opportunities.
Shares of the reinsurance company were up around 2% for the last five days and are up over 30% year-to-date in 2024.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="995" height="501" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143928/Screenshot-230.png" alt="" class="wp-image-626127" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143928/Screenshot-230.png 995w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143928/Screenshot-230-300x151.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143928/Screenshot-230-768x387.png 768w" sizes="(max-width: 995px) 100vw, 995px" /></a></figure>
Sera Prognostics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SERA#NASDAQ">SERA</a>) is scheduled to report third-quarter financial results on Nov. 6. The company is behind the PreTRM test for pregnancy preterm testing. An investor presentation highlighted the company's future product pipeline to include a predictive analytics product and a time-to-birth test. Shares of the pregnancy diagnostics company were up 16% over the last five trading days.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="999" height="505" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143943/Screenshot-231.png" alt="" class="wp-image-626128" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143943/Screenshot-231.png 999w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143943/Screenshot-231-300x152.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143943/Screenshot-231-768x388.png 768w" sizes="(max-width: 999px) 100vw, 999px" /></a></figure>
Stay tuned for next week's report, and follow Benzinga Pro for all the latest headlines and&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent102524&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">top market-moving stories here.</a>
Read the latest Stock Whisper Index reports here:
<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/10/41187322/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet" target="_blank" rel="noreferrer noopener">October 4</a></li>
<li><a href="https://www.benzinga.com/top-stories/24/10/41296909/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet" target="_blank" rel="noreferrer noopener">October 11</a></li>
<li><a href="https://www.benzinga.com/exclusives/24/10/41405659/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet" target="_blank" rel="noreferrer noopener">October 18</a></li>
<li><a href="https://www.benzinga.com/real-estate/reit/24/10/41549488/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet">October 25</a></li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/09/40928301/interest-rates-in-free-fall-what-it-means-for-mortgages-credit-cards-and-your-wallet-a" target="_blank" rel="noreferrer noopener">Interest Rates In Free-Fall: What It Means For Mortgages, Credit Cards And Your Wallet</a></li>
</ul>

Exclusives

SERA

Benzinga's 'Stock Whisper' Index: 5 Stocks Investors Secretly Monitor But Don't Talk About Yet

<ul>
<li>So far in 2024, SPYI has offered a higher yield at 8.9% against JEPI&#8217;s 5.1% and XYLD&#8217;s 6.9%.</li>
<li>Both XYLD and SPYI benefit from more favorable tax treatment due to Section 1256 contracts, which could mean more net income after taxes compared to JEPI.</li>
<li>JEPI has delivered a total return of 13.3% during the first nine months of 2024 — capturing only 58% of the S&amp;P 500 Index's total return.&nbsp;</li>
<li>If broad market strength continues, SPYI&#8217;s strategy seems better positioned due to its out-of-the-money calls and diversified holdings.&nbsp;</li>
<li>In volatile or declining markets, JEPI&#8217;s lower volatility might appeal to those prioritizing principal protection over total return.</li>
</ul>
<hr class="wp-block-separator has-alpha-channel-opacity" />
<h3 class="wp-block-heading">Introduction</h3>
2024 has been quite the year thus far — especially for income-focused investors.&nbsp;
We saw ETFs like the <a href="https://www.benzinga.com/quote/DIVO">Amplify CWP Enhanced Dividend Income ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVO#NYSE">DIVO</a>) and <a href="https://www.benzinga.com/quote/SCHD">Schwab U.S. Dividend Equity ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) break out to new all-time-highs — driven by broad-based market breadth. While other riskier ETFs like the <a href="https://www.benzinga.com/quote/QQQY">Defiance Nasdaq 100 Enhanced Options 0DTE Income ETF</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQY#NASDAQ">QQQY</a>) lose -35% of their share price while delivering single-digit total returns year-to-date. 
It has never been harder for income-focused investors to balance perceived risk with long-term gains. In this post, I want to share a year-to-date update on my "perfect balance" income-focused ETF that holds over $100K of my hard earned money.
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd1DL8sdKl6JGDeQ46rV_-vqgQBM8fMnA_WhA1UJwo95Uf7xX2HpUbRzKD1T_ESPxBw2WRIaGCrtGQsBLtPcXA05g5-DifRXMz1oJyM3mriturdyvFPtjZ5TlIgOjN3d3Lm1cKrrXM0DCBU8KLYNB_FyTMl?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
<h3 class="wp-block-heading">2024 In Review</h3>
If you're an income-focused investor like me, your portfolio is anchored by covered call ETFs that are benchmarked against the total return of the S&amp;P 500. Unfortunately for some investors, 2024 is proving that not every S&amp;P 500 covered call ETF is made equal.&nbsp;
Now before you all come after me with "You can't compare JEPI to the S&amp;P 500 Index! JEPI doesn't hold the same stocks, it's a completely different strategy!"&nbsp;
You're right. However, the fund's investment objective as shared in their <a href="https://am.jpmorgan.com/JPMorgan/TADF/46641Q332/SP?site=JPMorgan">summary prospectus</a> states the following:
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">"The investment objective of the Fund is to seek current income while maintaining prospects for capital appreciation.&nbsp; The Fund seeks to achieve this objective by (1) creating an actively managed portfolio of equity securities comprised significantly of those included in the Fund's primary benchmark, the Standard &amp; Poor's 500 Total Return Index (S&amp;P 500 Index)&#8230;"
</blockquote>
And as shown below on Morningstar, JEPI's benchmark index is the S&amp;P 500.&nbsp;
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdidgXA3MHPTisk0cF0XnkQXpmy9scj33d_QapeP4CpD8ekOsSD4NrDBby6A3r-PdkXmXwHb3BVMsBjK09eOvuClpk98bSAQ_U1BEa-tVKtDLXTZHLb3cTcTmeOG-VceYTQYu8W-2f4vdnQbuKzwlSxQ9ZH?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
Now that we're all on the same page, let's dive into the numbers, starting with JEPI.&nbsp;
<h3 class="wp-block-heading">JPMorgan Equity Premium ETF </h3>
<a href="https://www.morningstar.com/etfs/arcx/jepi/performance">The total return of JEPI thus far in 2024 is 13.3%</a>, capturing only 58% of the total return of the S&amp;P 500 Index. 
As we all know, the S&amp;P 500 Index was led higher in 2023 by the Magnificent Seven — seven stocks JEPI's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>) fund managers understandably decided to leave out of the fund's holdings. In 2024, however, given the broad-based strength of the market JEPI was able to participate meaningfully more in the continued upside the S&amp;P 500 experienced. 
58% total return capture in 2024 is better than the fund's only 37% total return capture in 2023, but still not enough to excite an income-focused investor also looking for price appreciation.&nbsp;
As stated in the summary prospectus, "The Fund seeks a lower volatility level than the S&amp;P 500 Index." JEPI certainly achieved this, as the price of their shares only slipped -3.3% during the -7.9% drawdown the S&amp;P 500 experienced between July and August of 2024. And when you add monthly distributions to that figure, risk-averse investors become increasingly happier — a win in my book.&nbsp;
However, it's equally as important to ask yourself the question "Is the return I see the return I get?"
JEPI uses <a href="https://www.investopedia.com/terms/e/equity-linkednote.asp">Equity Linked Notes</a> (ELNs) to generate monthly income for their investors. In the eyes of the IRS, the income generated by these ELNs are taxed as ordinary income — meaning after taxes, this 13.3% figure might be materially lower for some folks depending on their tax brackets.&nbsp;
As a fellow JEPI investor, I'm constantly weighing my opportunity cost. By choosing JEPI over the next best thing, I'm capturing only 58% of the S&amp;P 500's total return. Sure, I'm doing so in an effort to smooth out the volatility of my portfolio while also generating monthly income — but at the expense of upside potential and higher taxes.&nbsp;
Let's move on.
<h3 class="wp-block-heading">Global X S&amp;P 500 Covered Call ETF</h3>
<a href="https://www.morningstar.com/etfs/arcx/xyld/performance">The total return of XYLD thus far in 2024 is 13.0%</a>, capturing only 57% of the total return of the S&amp;P 500 Index. XYLD marginally underperformed JEPI by -0.3%, which is weird considering the fund held "<a href="https://www.globalxetfs.com/prospectus-regulatory/?id=2954">all the equity securities in the S&amp;P 500 Index in substantially similar weight.</a>"
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">But if the fund held all of the constituents of the S&amp;P 500, why did it underperform the index by nearly half?
</blockquote>
Unfortunately for my fellow XYLD investors, because the fund wrote at-the-money (ATM) covered calls against their holdings their total upside was capped at just the premium generated by the option contracts. 
According to XYLD's <a href="https://www.globalxetfs.com/prospectus-regulatory/?id=2954">summary prospectus</a>…
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">"The Fund writes a single &#8220;at-the-money&#8221; call option, which is when the strike price is near to the market price of the underlying asset, as determined on the monthly option writing date of the Underlying Index in accordance with the Underlying Index methodology.&nbsp;
The Fund&#8217;s covered call options may partially protect the Fund from a decline in the price of the Reference Index through means of the premiums received by the Fund. However, when the equity market is rallying rapidly, the Underlying Index is expected to underperform the Reference Index."
</blockquote>
And underperform it did.&nbsp;
However, unlike JEPI, XYLD uses <a href="https://www.investopedia.com/terms/s/section-1256-contract.asp">Section 1256 contracts</a> to generate their monthly income for investors. These Section 1256 contracts are treated much more favorably than ELNs in the eyes of the IRS — with income to be taxed as 60% long-term capital gains and 40% short-term, allowing investors to keep more of that 9.7% yield come tax time in April.
<h3 class="wp-block-heading">NEOS S&amp;P 500 High Income ETF</h3>
<a href="https://www.morningstar.com/etfs/bats/spyi/performance">The total return on SPYI thus far in 2024 is 16.5%</a>, capturing over 72% of the S&amp;P 500 Index's total return. SPYI (BATS:<a class="ticker" href="https://www.benzinga.com/stock/SPYI#BATS">SPYI</a>) has been able to outperform both XYLD and JEPI in 2024 by 3.5% and 3.2%, respectively. SPYI is able to do this by "<a href="https://neosfunds.com/wp-content/uploads/SPYI-Prospectus.pdf">investing in a portfolio of stocks that make up the S&amp;P 500 Index</a>," while also implementing a covered call option strategy that writes covered call option contracts up to 5% out-of-the-money. 
Let's take a look at SPYI's holdings (as of 10/7/24) to get a better understanding as to why this covered call ETF outperformed its competitors by such a wide margin:
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfUp6gYNdynthT4MY4Kl4m6uUFXIl4bMYKjs4kPoTEMz3OiTCgRs0vlMOqKBY-H8SeGPrH1PdktkaN94fE0ew_Q9zCj4bCLIuNNHlh-Xj77zgqpJK6fbJNXXHHFgCJnQhgkpqiMP2cNPplhpeBxLajIqYhj?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
As you can see above, the management team behind SPYI decided to write two covered call option contracts against the S&amp;P 500 expiring on November 11th at the strike prices of 5,840 and 5,910. Assuming these contracts are rolled monthly, something SPYI's management team has stated in <a href="https://youtu.be/8xykeGA5eJU?si=9Y6KrXuBpSPLNiQa">multiple interviews</a>, they were likely written early-October.&nbsp;
The S&amp;P 500 Index was trading around ~5,700 during this time frame — which means their management team wrote these option contracts 2.5% and 3.7% out-of-the-money. These percentage points might not seem like a big deal, but when we have weeks like we did when these contracts were written (new all-time-highs in the S&amp;P 500 Index), writing out-of-the-money contracts vs. at-the-money contracts can really move the needle from a total return perspective.&nbsp;
For added color, below are XYLD's covered call option contracts (as of 10/7/24) — choosing to write option contracts at the 5,690 strike price. At time of writing, the S&amp;P 500 is 5,750 — which would mean investors in XYLD aren't capturing any upside beyond 5,690 at the moment.
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXckN09FDJZqf2o-1N02rjU1_qrnNVqs1C0PldCsL6bIwTiwc4j3M5iOYJu96Dm-I0fB1PjWWe49QSChcFg50Uj_Td6mfgo2Q_wIUlsYh9rmwQ7NJ8zjnHuLFXoxjx7CYtPQUQ_Wai03XNzPMLETZgURiD0U?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
Similar to XYLD, SPYI uses <a href="https://www.investopedia.com/terms/s/section-1256-contract.asp">Section 1256 contracts</a> to generate their monthly income for investors — allowing them to keep more of that 12.11% annual distribution yield in their pockets when Uncle Sam comes knocking.&nbsp;
All in all, SPYI has offered material outperformance against XYLD and JEPI thus far in 2024 — from an income generation, total return, and tax-efficiency perspective.&nbsp;
JEPI has paid out $3.05 per share so far this year, a 5.1% yield against their $59.11 closing price on September 30, 2024. XYLD has paid out $2.88 per share so far this year, a 6.9% yield against their $41.50 closing price on September 30, 2024. SPYI paid out $4.57 per share so far this year, an 8.9% yield against their $51.23 closing price on September 30, 2024.
That's a 3.8% higher yield than JEPI, and 2.0% higher yield than XYLD.
<h3 class="wp-block-heading">What Does Q4 Have In Store For Income-Focused Investors?</h3>
It's hard to say.&nbsp;
2023 was dominated by AI, as has been some aspects of 2024. However, I'd argue 2024 — especially after the Fed signaled upcoming rate cuts — was accompanied by broad-based strength as AI-related earnings acceleration by the Mag 7 has lapsed and the "S&amp;P 493" begins to deliver an uptick in earnings growth for the first time since 2021.
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcEIEyvvJLsYRawEg6qLpWi2a0XtJ2Xo3kZ80ZJnojGTm5OVaVO0HJhnkZw1TEvBfKzVvTAclDrR6V-1hxwIsZSIHs1JlmkXoBLczf9sqI3JWcnoeuN9rRwTiRmu0kPjtnSfu_bLttPeIip54cZigKMm-MB?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
Additionally, BofA's Global Fund Manager Survey tells us that over half of FMS investors say no recession for the US in the next 18-months. Now you can agree or disagree with their assumption — that's not the point. The point is this is the assumption these money managers are using to position their portfolios.
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcuuerLV5qrJ-6LoXTApWpa_hb0cB1vxjSGwfXRZ25YCYKZcAqJZntllN66xpr8fCxsVrcWrKkzH1G0ZSPr5WfBiWoFddWPsB3zTdOkblO7h57TrICq9iZ18ZUI_M5N2kKKwkxHRG8VZXedlWkHnJThIOQ?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
And as the Fed cuts rates, the most important factor to keep an eye on is if the US economy will avoid a recession or not. If we do, history tells us there's more upside to be had over the coming 12-24 months. If we do not, these covered call ETFs will become an increasingly larger position in my portfolio as I weather the storm.
<h3 class="wp-block-heading">Conclusion</h3>
As a fellow income-focused investor, I'm always weighing my options in efforts to determine the best possible way to invest my money. At time of writing, I'm not sure JEPI is the answer here.&nbsp;
If markets continue to rally because of broad-based strength, both XYLD and SPYI's underlying portfolios would likely benefit from their exposure to these types of companies. With that being said, I do acknowledge that XYLD's option contracts are written at-the-money, while JEPI and SPYI <a href="https://spotgamma.com/a-dive-into-jepi-options-strategy-from-the-manager-himself/">seem to be written</a> slightly out-of-the-money. If markets fall, both XYLD and SPYI offer a higher annualized distribution yield than JEPI, offsetting potential downward pressure on price. If markets rally, fall, trade sideways, or even in circles — both XYLD and SPYI will offer more tax-efficient income for their investors given their Section 1256 contracts.&nbsp;
Based on the factors shared in this analysis, I've chosen SPYI to be a six-figure core holding inside of my income-focused portfolio.
<hr class="wp-block-separator has-alpha-channel-opacity" />
Disclaimer: 
This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Austin Hankwitz is a writer, which means he's not always right with his predictions or recommendations. Since that also applies to his grammar, please excuse any typos you may find. Also, this article is free: Written and distributed only to assist in research while providing a forum for second-level thinking. In some circumstances, he has a business relationship with a company whose stock is mentioned in this article.
Each investor is responsible to conduct their own due diligence and to understand the risks associated with any information that is reviewed. The information contained herein does not constitute and shouldn&#8217;t be construed as a solicitation of advisory services. Consult a registered financial advisor and/or certified financial planner before making any investment decisions.

Opinion

DIVO

QQQY

My $100,000 Dividend Portfolio Decision — JEPI, SPYI, Or XYLD

Imagine building a portfolio where your investments work for you to generate a steady stream of income without demanding constant attention. Passive income is a powerful financial tool that can help you achieve your financial goals and build long-term wealth. Dividend investing is a popular passive income strategy that offers a compelling way to earn regular cash flow from your portfolio. This strategy has many different approaches, but dividend ETFs are quickly emerging as a convenient and efficient option for investors.
<h2>Dividend ETFs: Streamlining Your Path to Passive Income</h2>
Dividend ETFs are exchange-traded funds (ETFs) that hold a basket of dividend-paying companies. By investing in a dividend ETF, you gain instant diversification across multiple stocks and stock sectors, mitigating the risk of owning individual securities. These ETFs track specific market indices or implement specialized strategies, aiming to provide a regular income stream through dividend payouts. This makes them an attractive option for investors of all levels, from beginners seeking simplicity to seasoned investors looking for efficient portfolio diversification.
Dividend ETFs offer numerous advantages besides diversification. Professional portfolio management ensures the ETF&#39;s holdings align with its investment objectives, and lower expense ratios compared to some actively managed funds contribute to potentially higher net returns. The ease of trading on major stock exchanges, like individual stocks, further enhances their accessibility and flexibility for investors.
<h2>Income or Growth? Finding the Right Dividend ETF&nbsp;</h2>
While dividend ETFs offer a simplified approach to generating passive income, not all are created equal. Each dividend ETF employs a distinct investment strategy, leading to variations in yield, potential for growth, and overall risk. You must review the ETF and its holdings to ensure that the ETF you choose aligns with your investment strategy.&nbsp;&nbsp;
<h3>Prioritizing Immediate Income: SPDR Portfolio S&amp;P 500 High Dividend ETF</h3>
For investors seeking to maximize current income, SPDR Portfolio S&amp;P 500 High Dividend ETF (ARCA:SPYD) presents an attractive option with its high dividend yield of 4.37%. This ETF tracks the S&amp;P 500 High Dividend Index, focusing solely on the top 80 yielding stocks within the S&amp;P 500.
However, investors should be aware of the potential trade-off: SPYD&#39;s emphasis on yield has historically come at the expense of share price appreciation, meaning its total return (dividends plus price growth) may lag behind the broader market.
SPYD currently holds around $7 billion in assets under management (AUM), indicating its popularity among income-focused investors.
<h3>Striking a Balance: Schwab US Dividend Equity ETF</h3>
Schwab US Dividend Equity ETF (ARCA:SCHD) caters to investors seeking a balanced approach, aiming to deliver consistent income and potential for capital appreciation. By tracking the Dow Jones U.S. Dividend 100 Index, SCHD holds 100 high-quality U.S. companies with a proven track record of paying and growing dividends.
This focus on quality and sustainability is reflected in its impressive dividend growth history.
With a 3.03% dividend yield and an exceptionally low expense ratio of 0.06%, SCHD ensures that a larger portion of your investment translates to returns. Its significant market capitalization, exceeding $59 billion, underscores its appeal to a broad range of investors.
<h3>Targeting Long-Term Growth: Invesco Dividend Achievers ETF</h3>
Invesco Dividend Achievers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pfm#NASDAQ">PFM</a>) appeals to investors prioritizing long-term dividend growth and the potential for compounding returns.
This ETF tracks the NASDAQ US Broad Dividend Achievers Index, which consists of companies that have increased their dividends for at least ten consecutive years.
This rigorous selection process emphasizes financial strength and a commitment to rewarding shareholders. While PFM&#39;s current yield of 1.62% might appear modest, its focus on consistent dividend increases can translate to substantial long-term growth, potentially outpacing inflation and delivering significant wealth accumulation over time.
<h2>Strategic Portfolio Integration of Dividend ETFs</h2>
Integrating dividend ETFs into your portfolio requires that you align them with your financial roadmap, taking into account your investment goals, risk tolerance, and time horizon. Investors seeking immediate income streams to supplement their current lifestyle or cover expenses might find a higher-yielding ETF like SPYD suitable. However, it&#39;s essential to acknowledge that a higher yield may sometimes come at the cost of potential share price growth.&nbsp;
For those with a longer time horizon and a greater appetite for risk, SCHD, with its balanced approach to yield and capital appreciation, might prove a more compelling choice. Conversely, more conservative investors nearing retirement may find PFM&#39;s focus on stable, long-term dividend growth more attractive, even with its comparatively modest yield.
Remember, dividend ETFs are versatile instruments that can be strategically incorporated into a diversified portfolio. Depending on your individual risk profile, they can complement growth-oriented investments or serve as a stabilizing force within a more conservative allocation strategy.
<h2>Harnessing the Power of Compounding: The Long Game</h2>
Adopting a long-term investment strategy is vital to unlocking maximum returns regardless of your chosen dividend ETF. This is where the power of compounding comes into play. Rather than opting for immediate cash payouts, reinvesting your dividends allows those earnings to generate further income. This snowball effect, often called &quot;the eighth wonder of the world&quot; can significantly amplify your wealth over time. By reinvesting dividends consistently, you&#39;re buying more shares of the ETF, which, in turn, can generate even more dividends, creating a powerful growth cycle.
<h2>Charting Your Course to Passive Income</h2>
Dividend ETFs provide a simplified and effective avenue for building passive income streams and working toward financial freedom. However, investing in dividend ETFs requires a tailored approach. You should diligently research and compare ETFs, paying close attention to factors such as underlying indices, expense ratios, dividend histories, and overall investment strategies. By combining strategic decision-making with a long-term perspective, you can harness the full potential of dividend ETFs and embark on a rewarding journey toward passive income generation.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/harness-the-power-of-dividend-etfs-for-steady-income-growth/">Harness the Power of Dividend ETFs for Steady Income Growth</a>&quot; first appeared on MarketBeat.

Sector ETFs

Management

PowerShares Exchange Traded Fund Trust Dividend Achievers Portfolio

Harness the Power of Dividend ETFs for Steady Income Growth

In today&#39;s uncertain markets, investors increasingly turn to dividend-paying stocks as a reliable strategy for generating passive income and enhancing portfolio stability. Schwab US Dividend Equity ETF (ARCA:SCHD) stands out because it consistently delivers strong returns, outperforming the S&amp;P 500 for the past five years. SCHD leads the way when executing a dividend growth strategy and building a well-rounded, income-focused portfolio.
<h2>SCHD&#39;s Winning Formula: Quality and Growth</h2>
SCHD&#39;s success comes from a strict investment strategy that balances consistent income and long-term capital appreciation. This dividend exchange-traded fund (ETF) meticulously tracks the Dow Jones U.S. Dividend 100 Index, including 100 U.S. companies with proven dividend profiles and solid financial fundamentals.
The ETF&#39;s selection process prioritizes companies committed to rewarding shareholders through sustained and increasing dividend payouts. To be eligible for the fund, a company must have a history of at least ten consecutive years of uninterrupted dividend payments. This strict requirement eliminates companies with inconsistent dividend histories or susceptibility to economic fluctuations.
However, SCHD goes beyond dividend payment history, favoring companies with solid financial health. This includes strong balance sheets, sustainable dividend payout ratios, and the potential for earnings and dividend growth in the future. For example, SCHD considers a company&#39;s debt-to-equity ratio (D/E), which ideally should be low, indicating less reliance on borrowed funds. A higher return on equity (ROE) is another positive signal, suggesting efficient use of shareholder investment to generate profits. By emphasizing these factors, SCHD looks to minimize the risk of dividend cuts while maximizing the potential for share price growth to complement the dividend income.
Furthermore, SCHD&#39;s diversified sector allocation enhances its resilience. While primarily investing in U.S. large-cap stocks, the ETF strategically allocates across diverse sectors. This balanced approach mitigates sector-specific risks, ensuring the ETF&#39;s overall performance is not overly dependent on any single industry.
<h2>The Numbers Don&#39;t Lie: A Track Record of Impressive Returns</h2>
SCHD&#39;s historical performance reveals the ETF&#39;s legacy of consistent growth and market-beating returns. According to the fund prospectus, since its inception on October 19, 2011, the ETF has delivered an impressive average annual return of 13.4%. This performance surpasses the broader S&amp;P 500 Index, which has averaged approximately 11% over the same period. SCHD&#39;s track record shows the fund has a well-executed investment strategy, emphasizing dividend income and capital appreciation.
Investors seeking consistent income streams will find SCHD&#39;s current dividend yield of 3.03% particularly attractive, especially compared to the S&amp;P 500&#39;s average dividend yield of 1.32%. This high yield positions SCHD as a cost-effective way to access a diversified dividend income stream. Furthermore, the ETF boasts a remarkably low expense ratio of 0.06%, ensuring that a greater portion of investor returns remains in their pockets.
Recent events further reinforce SCHD&#39;s positive momentum. In September, the ETF achieved a new 52-week high of $85.24, driven by strong institutional buying and positive investor sentiment surrounding its solid strategy and well-established holdings. Additionally, SCHD recently announced a 3-for-1 stock split scheduled for Oct 11, 2024, making the ETF more accessible to a broader range of individual investors. This action is expected to enhance liquidity, making buying and selling shares easier and potentially contributing to increased future trading volume.
<h2>Outpacing the Competition: SCHD&#39;s Unique Advantages</h2>
SCHD stands out in a crowded field of dividend-focused ETFs because of its unique approach. Many dividend ETFs prioritize high current yields or focus exclusively on undervalued companies. However, SCHD takes a more balanced approach, carefully selecting companies based on a combination of factors that include a history of consistent dividend growth, robust financial health, and the potential for future earnings growth.
This well-rounded strategy, combined with its exceptionally low expense ratio of 0.06%, allows SCHD to deliver strong total returns, often exceeding the performance of its peers. By emphasizing quality, growth, and value, SCHD offers investors a compelling path to building long-term wealth while enjoying a steady dividend income stream.
<h2>A Strategic Building Block for Your Portfolio</h2>
SCHD&#39;s versatility and performance make it an ideal addition to a range of investment strategies. For income-focused investors seeking consistent cash flow, SCHD provides a reliable stream of dividend income without sacrificing the potential for long-term growth. Younger investors with a longer time horizon can benefit from SCHD&#39;s dual focus on income and capital appreciation, allowing their investments to compound over time and potentially outpace inflation.
SCHD can also serve as a stabilizing force within a balanced portfolio, complementing growth-oriented investments and reducing overall volatility. Regardless of individual objectives, investors should carefully consider their risk tolerance, time horizon, and financial goals when deciding how to allocate SCHD within their portfolios. It&#39;s also essential to remember that dividend income is generally taxable, and investors should consult with a financial advisor to understand the tax implications relevant to their situation.
<h2>SCHD: A Dividend Powerhouse Worth Investigating</h2>
SCHD consistently rises to the top when competitively analyzing ETFs. Its solid strategy, impressive track record, remarkably low costs, and potential for income and growth make it an exceptional investment vehicle. Investors seeking a simplified, professionally managed, and potentially highly rewarding way to participate in the dividend market should explore SCHD further. This involves conducting thorough research, including examining the ETF&#39;s underlying index, evaluating its top holdings, and assessing its long-term performance during various market cycles.
By carefully considering SCHD&#39;s features and aligning them with their own investment goals, investors can harness the power of this dividend powerhouse to potentially build long-term wealth.
The article &quot;<a href="https://www.marketbeat.com/originals/schd-etf-unlocking-passive-income-with-strong-returns/">SCHD ETF: Unlocking Passive Income With Strong Returns</a>&quot; first appeared on MarketBeat.

Stock Split

SCHD ETF: Unlocking Passive Income With Strong Returns

Launched on 01/07/2014, the First Trust Rising Dividend Achievers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rdvy#NASDAQ">RDVY</a>) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $11.71 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.49%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.83%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 42% of the portfolio. Information Technology and Consumer Discretionary round out the top three.
Looking at individual holdings, D.r. Horton, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhi#NYSE">DHI</a>) accounts for about 2.41% of total assets, followed by Mueller Industries, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mli#NYSE">MLI</a>) and Aflac Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afl#NYSE">AFL</a>).
The top 10 holdings account for about 22.38% of total assets under management.
<h2>Performance and Risk</h2>
RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index before fees and expenses. The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
The ETF has added roughly 12.45% so far this year and was up about 23.75% in the last one year (as of 09/17/2024). In the past 52-week period, it has traded between $43.44 and $58.75.
The ETF has a beta of 1.11 and standard deviation of 19.70% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Rising Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RDVY is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $60.60 billion in assets, Vanguard Value ETF has $126.51 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2336911/should-first-trust-rising-dividend-achievers-etf-rdvy-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2336911">To read this article on Zacks.com click here.</a>

Mid Cap

RDVY

Should First Trust Rising Dividend Achievers ETF Be on Your Investing Radar?

As the Federal Reserve transitions from a restrictive monetary policy to a more accommodative stance, investors are questioning how this regime change will <a href="https://www.benzinga.com/topic/interest-rates">impact various asset classes. </a>
The central bank&#8217;s shift towards lower interest rates can have far-reaching implications across equities, bonds, and other markets.
Historically, stocks have tended to perform well following the Fed&#8217;s initial rate cuts—but with a crucial caveat: the economy must avoid slipping into a recession. An <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40855247/fed-rate-cuts-and-s-p-500-the-why-matters-most-data-shows">analysis by Goldman Sachs</a> reveals that the S&amp;P 500 has experienced significant declines even after rate cuts if the U.S. economy entered a recession during those periods.
When it comes to bonds, lower interest rates have generally led to a decrease in bond yields, thus driving up bond prices. Unlike equities, this dynamic has historically played out somewhat independently of the economic cycle. However, &#8220;what's past is prologue&#8221; is not always a guarantee in financial markets.
<h2 class="wp-block-heading">&#8216;Quality Can Be Found Across Asset Classes&#8217;</h2>
According to Bank of America&#8217;s latest Research Investment Committee (RIC) report, investors can identify quality opportunities across various asset classes, particularly in today&#8217;s shifting market landscape.
BofA analysts suggest that in the U.S. equity space, investors should adopt a defensive stance, focusing on companies with high free cash flow.
Savita Subramanian, head of U.S. equity &amp; quantitative strategy at BofA, notes that S&amp;P 500 valuations indicate low price returns for the next decade, making dividend payouts more crucial for total returns.
<ul>
<li>Utilities: Recently <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40823561/this-under-the-radar-defensive-ai-sector-quietly-outperforms-all-others-despite-rec">upgraded to Overweight by BofA, </a>the utilities sector stands out for its defensive characteristics and competitive yield. Subramanian indicates that growing power demand driven by AI-linked data centers bolsters the outlook for utility companies. ETFs like the First Trust Utilities AlphaDEX ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXU#NYSE">FXU</a>) and the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) are potential plays in this space.</li>
<li>Real Estate: Offering higher quality yield than before, with 70% of the sector rated B+ or better, the real estate sector provides attractive options. BofA notes that the S&amp;P 500 real estate segment has relatively low office exposure, which could mitigate some risks. Recommended ETFs include the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) and iShares Cohen &amp; Steers REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICF#NYSE">ICF</a>).</li>
<li>Consumer Staples: BofA finds the consumer staples sector tactically attractive, especially ETFs like the Consumer Staples Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>), which has substantial exposure to resilient companies like The Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), Costco Wholesale Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>), Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>). Another sector play here is the iShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>). </li>
<li>Value, Quality, Dividends, and Buybacks: The bank is also bullish on factor-based ETFs, recommending exposure in value, quality, dividend, and buyback amid a strong free cash flow yield and potential for higher payouts than the broader S&amp;P 500 index. ETFs in this category include the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), Pacer US Cash Cows 100 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COWZ#NYSE">COWZ</a>), Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), and iShares Core Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVB#NYSE">DIVB</a>).</li>
</ul>
Outside the U.S., Bank of America is bullish on Japanese equities as effective corporate reforms are expected &#8220;to unleash a mountain of cash.&#8221; The WisdomTree Japan Hedged Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DXJ#NYSE">DXJ</a>) is a top pick in this market, having gained 125% since 2019. This ETF also offers protection against the yen&#8217;s devaluation. 
In the fixed-income market, BofA suggests exposure to AAA-rated collateralized loan obligations (CLOs) and long-dated Treasury bonds.
<ul>
<li>CLOs: BofA recommends the Janus Henderson AAA CLO ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JAAA#NYSE">JAAA</a>), viewing these loans as quality yield options that have withstood stress during both the 2008 financial crisis and the 2020 pandemic-induced downturn.</li>
<li>Long-Dated Treasuries: Investors looking for duration exposure can consider the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>), which tracks long-dated Treasury bonds with a 17-year duration.</li>
</ul>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Asset Class</th>
<th>Name</th>
</tr>
</thead>
<tbody>
<tr>
<td colspan="3">Equities</td>
</tr>
<tr>
<td>Utilities</td>
<td>First Trust Utilities AlphaDEX ETF</td>
</tr>
<tr>
<td>Utilities </td>
<td>Utilities Select Sector SPDR Fund</td>
</tr>
<tr>
<td>Real Estate</td>
<td>Real Estate Select Sector SPDR Fund </td>
</tr>
<tr>
<td>Real estate</td>
<td>iShares Cohen &amp; Steers REIT ETF</td>
</tr>
<tr>
<td>Consumer staples</td>
<td>Consumer Staples Select Sector SPDR ETF </td>
</tr>
<tr>
<td>Consumer staples</td>
<td>iShares U.S. Consumer Staples ETF</td>
</tr>
<tr>
<td>Value</td>
<td>Vanguard Value ETF</td>
</tr>
<tr>
<td>Quality</td>
<td>Pacer US Cash Cows 100 ETF </td>
</tr>
<tr>
<td>Dividend</td>
<td>Schwab US Dividend Equity ETF</td>
</tr>
<tr>
<td>Buybacks</td>
<td>iShares Core Dividend ETF </td>
</tr>
<tr>
<td>Japan</td>
<td>Wisdom Tree Japan Hedged Equity ETF</td>
</tr>
<tr>
<td colspan="3">Fixed income</td>
</tr>
<tr>
<td>Credit</td>
<td>Janus Henderson AAA CLO ETF</td>
</tr>
<tr>
<td>Duration</td>
<td>iShares 20+ Year Treasury Bond ETF </td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40887448/long-dated-treasury-bond-etf-hits-14-month-highs-ahead-of-imminent-fed-rate-cut">Long-Dated Treasury Bond ETF Hits 14-Month Highs Ahead Of Imminent Fed Rate Cut</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

REIT

Bonds

New ETFs

Treasuries

Econ #s

COST

COWZ

DIVB

WisdomTree Trust Japan Total Dividend Fund

iShares Trusthen & Steers Realty Majors Index Fund

iShares Trust Dow Jones USnsumer Goods Sector Index Fund

JAAA

iShares Trust Barclays 20+ Year Treasury Bond Fund

XLRE

13 ETFs To Own As Fed Set To Cut Rates: Analysts Highlight Utilities, Real Estate, And More

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco Dividend Achievers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pfm#NASDAQ">PFM</a>) is a passively managed exchange traded fund launched on 09/15/2005.
The fund is sponsored by Invesco. It has amassed assets over $697.06 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.53%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.65%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 21.40% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc&nbsp;accounts for about 4.31% of total assets, followed by Microsoft Corp and Broadcom Inc.
The top 10 holdings account for about 26.99% of total assets under management.
<h2>Performance and Risk</h2>
PFM seeks to match the performance of the NASDAQ US Broad Dividend Achievers Index before fees and expenses. The NASDAQ US Broad Dividend Achievers Index is designed to identify a diversified group of dividend-paying companies which have increased their annual dividend for 10 or more consecutive fiscal years.
The ETF has gained about 16.28% so far this year and it&#39;s up approximately 23.33% in the last one year (as of 09/16/2024). In the past 52-week period, it has traded between $35.25 and $46.01.
The ETF has a beta of 0.83 and standard deviation of 13.92% for the trailing three-year period, making it a medium risk choice in the space. With about 426 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Invesco Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PFM is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $60.01 billion in assets, Vanguard Value ETF has $125.50 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
<a href="https://www.zacks.com/stock/news/2336235/should-invesco-dividend-achievers-etf-pfm-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2336235">To read this article on Zacks.com click here.</a>

Tech

Should Invesco Dividend Achievers ETF Be on Your Investing Radar?

The Schwab Fundamental U.S. Large Company ETF (ARCA:FNDX) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
<h2>What Are Smart Beta ETFs?</h2>
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it&#39;s possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
<h2>Fund Sponsor &amp; Index</h2>
The fund is managed by Charles Schwab. FNDX has been able to amass assets over $16.17 billion, making it one of the largest ETFs in the Style Box - Large Cap Value. FNDX, before fees and expenses, seeks to match the performance of the Russell RAFI US Large Co. Index.
The RAFI Fundamental High Liquidity US Large Index measures the performance of large U.S. companies based on their fundamental size and weight.
<h2>Cost &amp; Other Expenses</h2>
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.75%.
<h2>Sector Exposure and Top Holdings</h2>
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund&#39;s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
FNDX&#39;s heaviest allocation is in the Financials sector, which is about 19.50% of the portfolio. Its Information Technology and Healthcare round out the top three.
Looking at individual holdings, Apple Inc accounts for about 4.40% of total assets, followed by Microsoft Corp&nbsp;and Berkshire Hathaway Inc Class B.
The top 10 holdings account for about 20.23% of total assets under management.
<h2>Performance and Risk</h2>
The ETF has gained about 11.42% and it&#39;s up approximately 20.30% so far this year and in the past one year (as of 09/09/2024), respectively. FNDX has traded between $53.46 and $70.84 during this last 52-week period.
FNDX has a beta of 0.99 and standard deviation of 15.80% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 738 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Schwab Fundamental U.S. Large Company ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (ARCA:SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (ARCA:VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $58.84 billion in assets, Vanguard Value ETF has $122.62 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
<a href="https://www.zacks.com/stock/news/2333159/is-schwab-fundamental-u-s-large-company-etf-fndx-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2333159">To read this article on Zacks.com click here.</a>

Asset Sales

FNDX

Is Schwab Fundamental U.S. Large Company ETF a Strong ETF Right Now?

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the First Trust Value Line Dividend ETF (ARCA:FVD), a passively managed exchange traded fund launched on 08/19/2003.
The fund is sponsored by First Trust Advisors. It has amassed assets over $9.72 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.60%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 2.12%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 19.50% of the portfolio. Utilities and Consumer Staples round out the top three.
Looking at individual holdings, Kellanova (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/k#NYSE">K</a>) accounts for about 0.62% of total assets, followed by Erie Indemnity Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/erie#NASDAQ">ERIE</a>) and Lockheed Martin Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lmt#NYSE">LMT</a>).
The top 10 holdings account for about 5.55% of total assets under management.
<h2>Performance and Risk</h2>
FVD seeks to match the performance of the Value Line Dividend Index before fees and expenses. The Value Line Dividend Index is a modified equal dollar weighted index comprised of U.S. exchange listed securities of companies that pay above-average dividends and have potential for capital appreciation.
The ETF has added about 11.07% so far this year and is up about 16.28% in the last one year (as of 09/04/2024). In the past 52-week period, it has traded between $36.09 and $44.80.
The ETF has a beta of 0.79 and standard deviation of 13.51% for the trailing three-year period, making it a medium risk choice in the space. With about 208 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Value Line Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FVD is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $59.94 billion in assets, Vanguard Value ETF has $123.92 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2331114/should-first-trust-value-line-dividend-etf-fvd-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2331114">To read this article on Zacks.com click here.</a>

ERIE

First Trust Value Line Dividend Index Fund ETF

Should First Trust Value Line Dividend ETF Be on Your Investing Radar?

Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) <a href="https://www.benzinga.com/pressreleases/24/08/g40311428/verizon-to-upgrade-sd-wan-at-49-national-labor-relations-board-locations" target="_blank" rel="noreferrer noopener">inked a new</a> Enterprise Infrastructure Solutions (EIS) deal with the National Labor Relations Board (NLRB), an independent federal agency that focuses on the rights of <a href="https://www.benzinga.com/topic/telecom">private sector employees</a>.
Under the $4 million contract, Verizon will reconfigure and upgrade NLRB&#8217;s Software-Defined Wide Area Network (SD-WAN) at all 48 branch offices, including its headquarters.
Additionally, Verizon&#8217;s solution includes new distributed security infrastructure and cloud hosting services.
&#8220;The NLRB win reaffirms Verizon&#8217;s market position as the premier provider of EIS services to federal agencies,&#8221; said Michael Adams, Associate Vice President, Federal Civilian Business at Verizon.
A software-defined wide area network helps these organizations in quality and cost control.
In July, Verizon reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39883078/verizon-q2-earnings-wireless-revenue-and-broadband-subs-gain-traction-sales-fall-short-of-expectati" rel="noreferrer noopener">second-quarter sales</a> of $32.8 billion, which was below the consensus estimate of $33.1 billion. Verizon Consumer revenue was $24.9 billion and Verizon Business revenues stood at $7.3 billion.
Verizon Communications stock gained over 21% in the last 12 months. Investors can gain exposure to the stock through Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
Price action:&nbsp;VZ shares traded higher by&nbsp;0.17% at $40.82 premarket at the last check Monday.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/08/40314918/markets-experience-best-and-worst-days-since-2022-whats-next-in-wall-streets-rollercoa">Markets Experience Best And Worst Days Since 2022: What&#8217;s Next In Wall Street&#8217;s Rollercoaster Ride?</a></li>
</ul>

Verizon Secures $4M Federal Contract, Touts New Security Infrastructure

BlackRock, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) is selling $2.5 billion in U.S. investment-grade bonds to help pay for its <a href="https://www.benzinga.com/markets/equities/24/07/39570007/blackrocks-aladdin-gets-smarter-3-2b-deal-adds-preqins-private-markets-data">$3.2 billion acquisition</a> of private-markets data company Preqin.
What Happened: According <a href="https://www.bloomberg.com/news/articles/2024-07-17/blackrock-taps-blue-chip-bond-market-to-fund-preqin-purchase?srnd=markets-vp&amp;sref=TBDibEcD">to</a> Bloomberg, citing an anonymous source, BlackRock Funding plans to sell the notes in three tranches.
The longest part of the deal matures in 30 years. It expects to yield one percentage point above Treasuries.
BlackRock did not immediately respond to Benzinga&#8217;s request for comment on the reported transaction.
BlackRock agreed to acquire London-based Preqin as part of an effort to grow its presence in private-markets investing. In January, the firm spent $12.5 billion to take over Global Infrastructure Partners.
Also Read: <a href="https://feeds2.benzinga.com/markets/equities/24/07/39603383/blackrocks-preqin-acquisition-to-drive-revenue-synergies-analyst-sees-expansion-in-emerging-priv">BlackRock&#8217;s Preqin Acquisition To Drive Revenue Synergies: Analyst Sees Expansion In Emerging Private Markets</a>
Private markets are rapidly growing and expected to reach nearly $40 trillion by decade's end. This sector's data market, currently valued at $8 billion, is growing 12% annually and is projected to reach $18 billion by 2030.
The Preqin acquisition is expected to close by the end of this year. Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) are leading the bond sale.
The three-year portion of the notes offering comes with a special mandatory redemption clause, which means BlackRock will buy back the notes at 101% if the Preqin deal fails to close by Sept. 2, 2025.
Price Action: BlackRock dipped 0.54% to $839.40 by late-afternoon trading on Wednesday, while exchange-traded funds that hold the stock rose and fell.
Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) lost 0.35% as Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) gained 1.32% and The Nightview Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NITE#NYSE">NITE</a>) slipped 3.1%. Madison Dividend Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVL#NYSE">DIVL</a>) edged up 0.92% and Copper Place Global Dividend Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDVD#NYSE">GDVD</a>) rose 0.52%.GDVD
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/07/39791571/blackrock-analysts-raise-their-forecasts-following-upbeat-earnings">BlackRock Analysts Raise Their Forecasts Following Upbeat Earnings</a></li>
</ul>

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NITE

BlackRock Sells $2.5B In Bonds To Help Fund Preqin Deal: Report

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