Fundamentals of Finance
Fundamentals of Finance
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SCHD Mistakes People Make (Top 4)
I cover the top 4 SCHD mistakes people make based on the hundreds of comments I've received. I cover oil, interest rates, income vs price appreciation, and more. And, this video has lifelong investment lessons whether you're invested in SCHD or not. Let's get into it!
If you want to learn more about investing from a CFA Charterholder currently in the industry, join our
FREE Discord: www.fundamentalsoffinance.com/discord
#fundamentalsoffinance #schd
Disclaimer: Not Financial Advice
The content provided on this channel, "Fundamentals of Finance," is for informational and educational purposes only. The information shared is not intended to be, and does not constitute, financial advice, investment advice, trading advice, or any other advice. You should not make any decision, financial, investment, trading, or otherwise, based on any of the information presented in this channel without undertaking independent due diligence and consultation with a professional broker or financial advisory.
The opinions expressed in this channel are those of the authors and do not necessarily reflect the views of any sponsors or affiliated parties. Any financial decision you make is at your own risk. "Fundamentals of Finance" will not be held liable for any losses or damages incurred as a result of your reliance on information provided on this channel.
Remember to always do your own research and consult with a qualified financial advisor before making any financial decisions.
มุมมอง: 8 755

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ความคิดเห็น

  • @David-ru1bt
    @David-ru1bt นาทีที่ผ่านมา

    Hello Ethan, could you please recommend me another dividend ETC which do you like and prefer? Thank you David

  • @vchill2845
    @vchill2845 3 ชั่วโมงที่ผ่านมา

    Hi , great video . I totally agree with you , though somehow there has been so much hype about de-dollarisation. Want to ask if you have update on your view of the BRICS and de-dollarisation at this point in time ( end of 2024) . Thank u

    • @FundamentalsofFinance
      @FundamentalsofFinance 3 ชั่วโมงที่ผ่านมา

      Thank you. And to answer your question, nothing has changed, so all of my views are still the same

  • @jeremiahnewsom7775
    @jeremiahnewsom7775 5 ชั่วโมงที่ผ่านมา

    Video on AVUV would be great!!!!!!! Thanks for the awesome content!!!!

  • @anonymousnearseattle2788
    @anonymousnearseattle2788 7 ชั่วโมงที่ผ่านมา

    I've taken advantage of the recent dip to buy another 100 shares of SCHD. This is a long term investment for me.

  • @moneybagzz
    @moneybagzz 7 ชั่วโมงที่ผ่านมา

    Buying Dip; Stochastics indicate (to me) a near term bottom; further declines cannot be ruled out however.

  • @paulythewallabee
    @paulythewallabee 9 ชั่วโมงที่ผ่านมา

    Sometimes schd is up ten percent in ten days. Show us the chart and how often that happened please.

  • @matthewbergey7153
    @matthewbergey7153 12 ชั่วโมงที่ผ่านมา

    So, in other words, this thing is garbage

    • @FundamentalsofFinance
      @FundamentalsofFinance 9 ชั่วโมงที่ผ่านมา

      Haha no, it's just value-oriented. Times like this happen to all investments

  • @vchill2845
    @vchill2845 13 ชั่วโมงที่ผ่านมา

    Thank you for sharing such an in-depth analysis , it is very useful to understand how to assess an etf . May I ask if you can do videos on pairing ETFs . Eg in your divo video you showed a chart where DIVO shows balanced attributes between Schd and JEPQ . So what if someone holds a portfolio of 50 % schd + 50 % JEPQ VS 100 % DIVO . Or 50% schd + 50 % QQQM VS 100 % divo . Thanks !

  • @RobynDion
    @RobynDion 13 ชั่วโมงที่ผ่านมา

    $INFTY3 has exceeded all my expectations as an investor. The team's experience, passion, and commitment to transparency are unrivalled. Join the presale and be part of this extraordinary success story!

  • @CansuNevroz
    @CansuNevroz 13 ชั่วโมงที่ผ่านมา

    I've done my research on $INFTY3 , and it seems like a solid investment opportunity. Excited to be a part of it!

  • @WILLIESantamaria
    @WILLIESantamaria 13 ชั่วโมงที่ผ่านมา

    Jumped on the $INFTY3 presale train and haven't looked back. Join me!

  • @GulsahEmrah
    @GulsahEmrah 13 ชั่วโมงที่ผ่านมา

    $INFTY3, the first token that is controlled by itself instead of owners or anybody else, is the best token in the world.

  • @KelleeWaite
    @KelleeWaite 13 ชั่วโมงที่ผ่านมา

    Yes, we are now over the deadline for those currencies, but fortunately, there are still other options available, such as $INFTY3.

  • @EfruzHatice
    @EfruzHatice 13 ชั่วโมงที่ผ่านมา

    The application cases for $INFTY3 fascinate me. The future is promising!

  • @CrystalLathrop
    @CrystalLathrop 13 ชั่วโมงที่ผ่านมา

    What makes you think there is no way? Do you know about $INFTY3? The price of this will soar to skyrocket

    • @FundamentalsofFinance
      @FundamentalsofFinance 9 ชั่วโมงที่ผ่านมา

      No way for what? What are you referring to?

  • @TammeraFaber
    @TammeraFaber 13 ชั่วโมงที่ผ่านมา

    The potential for $INFTY3 to hit $10 is very promising. Fingers crossed for a good journey!

  • @EDMONDNadeau-t3m
    @EDMONDNadeau-t3m 13 ชั่วโมงที่ผ่านมา

    $INFTY3, the first token that is controlled by itself instead of owners or anybody else, is the smartest token in the universe.

  • @TAYLOREthridge-v3b
    @TAYLOREthridge-v3b 13 ชั่วโมงที่ผ่านมา

    Presale excitement for $INFTY3 is off the charts. Don't wait, join today!

  • @FusunMehtap
    @FusunMehtap 13 ชั่วโมงที่ผ่านมา

    $INFTY3 is gonna pop anytime soon

  • @JudithSzymanski
    @JudithSzymanski 13 ชั่วโมงที่ผ่านมา

    You contend there is no way, but why? Are you familiar with the $INFTY3? This is going to rise to new heights.

  • @LeciaRitter
    @LeciaRitter 13 ชั่วโมงที่ผ่านมา

    Why do you say there is no way? Do you know about $INFTY3? This is going to fly to new heights.

  • @kerrydaniels8460
    @kerrydaniels8460 13 ชั่วโมงที่ผ่านมา

    I watch your videos then do some digging myself. I'm already invested in AVUV (a small cap ETF which much more reasonable ER's) and compared it to TSCPX and found AVUV much more compelling. It hasn't been around as long per se but it's kept up enough that after ER's are paid, it more than holds it weight.

  • @vchill2845
    @vchill2845 14 ชั่วโมงที่ผ่านมา

    Your explanation of graph comparing the DIVO JEPI SCHD is ingenious . I have never heard someone explain it like this before . Thank u.

  • @bradmcmillen49
    @bradmcmillen49 19 ชั่วโมงที่ผ่านมา

    So just to make sure I do understand dividend investing correctly. With a dividend ETF like SCHD it pays $.99 per share owned correct? So if you own 100 shares at $28 you are getting paid $.99(price per share) x 100 (number of shares). Even if the share price drops 10% to $90 you are still getting paid the exact same thing right? $.99 x 100? Am I right on this?

    • @FundamentalsofFinance
      @FundamentalsofFinance 15 ชั่วโมงที่ผ่านมา

      Maybe. The dividend it pays comes from the dividends the underlying stocks in the ETF pay. Little 2 week price fluctuations like this won't matter. But ultimately dividends are paid out of company profits. If the stock prices keep going down, things probably aren't going well for the companies and they may have to cut their dividends. And, more importantly, if you have money in your account you can create an income stream but if you don't, you can't, so the only thing that really matters is total return.

    • @irinab7524
      @irinab7524 12 ชั่วโมงที่ผ่านมา

      Your assumption is correct - despite the fluctuations of the price of a stock or ETF, you’ll always get the dividend per share. With SCHD the dividends are fluctuating but, let’s say, Altria (MO) pays $1.02/quarter per share. If you buy MO for $40 or $55, it still pays $1.02/share every 3 months.

  • @Kep19901
    @Kep19901 21 ชั่วโมงที่ผ่านมา

    There's a lot of dumb people in the world.

  • @samuelmajtan8509
    @samuelmajtan8509 22 ชั่วโมงที่ผ่านมา

    In 5min u calculate with yield which is still 5% when price is falling ->>> that’s means u calculate cutting dividends , if not and dividend remains same or increases , yield would be higher and higher. S-

    • @FundamentalsofFinance
      @FundamentalsofFinance 15 ชั่วโมงที่ผ่านมา

      Yes, well first of all this is an oversimplified example to help people understand why you can't just ignore price appreciation in the long run. 2nd, yes, where do you think the dividends in SCHD come from? They're the dividends the underlying stocks pay. And where do you think those come from? They come from their earnings. So if the stock prices keep falling, that probably tells you the earnings are falling, and you know what that leads to? Dividend cuts.

  • @Krisq8
    @Krisq8 วันที่ผ่านมา

    Awesome content, much thanks, do you not believe Dividend Income Investing is a legitimate strategy as I have been using that strategy for a few years now and it allows one to harvest the dividends to finance ones investing adventure, without having to tap into ones active income.

    • @FundamentalsofFinance
      @FundamentalsofFinance 15 ชั่วโมงที่ผ่านมา

      Thank you! No it's a totally legitimate strategy, but in my opinion dividend stocks are attractive because they are often in different industries and provide diversification from growth stocks, and because they typically have less downside risk in most stock market downturns. However the actual dividend itself isn't important. Only total return matters. But when I'm retired I'll own mostly dividend-oriented strategies for the lower volatility return profile they provide. I will create a steady income stream with a systematic withdrawal plan though, not subject myself to the uncertainty of dividend income thst bounces around month to month.

  • @ophirmayer1
    @ophirmayer1 วันที่ผ่านมา

    Well!!! Since my last question got such a good response on how wrong it was, i have another one : since schd is pissing me off so much (being a flawed emotional investor that I am) I'm thine about replacing my position in it with the Blackrock BDJ closed end fund. Seems to have a similar defensive holding portfolio plus some income via options trading and it yields double, almost 8%.

  • @tomcarl8784
    @tomcarl8784 วันที่ผ่านมา

    Your example at 5:00 seems to display a lack of understanding of yields and dividends.

    • @FundamentalsofFinance
      @FundamentalsofFinance 15 ชั่วโมงที่ผ่านมา

      It's an oversimplified example to help people understand why you can't just completely ignore price appreciation in the long run. I said that in the video...

  • @vchill2845
    @vchill2845 วันที่ผ่านมา

    May I ask of anyone know - is there a price difference if I buy FDVV at fidelity or at Schwab ? And similarly , is there price difference if I buy schd at Schwab or at fidelity ? Thank you !!

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      No price difference for ETFs on different platforms except sometimes if they charge a separate transaction fee. Vanguard does that for some non-vanguard funds but I'm not aware of that at fidelity and I know schwab doesn't

    • @vchill2845
      @vchill2845 วันที่ผ่านมา

      Thank you for your reply !

  • @vchill2845
    @vchill2845 วันที่ผ่านมา

    Hi can I also ask for your insight , on why JEPI has been dropping bad but JEPQ has been going up ? Thank u 😊

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      Tech stocks have been doing really well lately. Jepi owns more of the same kinds of stocks that schd owns.

  • @CAPCAPTAIN
    @CAPCAPTAIN วันที่ผ่านมา

    Trump Maga 2025 unstoppable

  • @joshuamatkin8306
    @joshuamatkin8306 วันที่ผ่านมา

    SCHD- price appreciation led to a stock split 3 to 1 which means the price appreciation was internalized and shareholders receive two additional dividend payouts

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      Actually a stock split wouldn't impact the dividend. You'd have 3x the shares at 1/3 the value and your dividend would also be 1/3 the value per share (so exactly the same value since you have 3x as many shares)

    • @joshuamatkin8306
      @joshuamatkin8306 วันที่ผ่านมา

      @ but the dividend didn’t go to a third it increased as well. That is in the case of SCHD.

    • @timlane8061
      @timlane8061 17 ชั่วโมงที่ผ่านมา

      If you own 1k of SCHD, where its in 37 shares (at 27$) or 12 shares at pre-split price.... The dividend is still 3.3 percent of $1000 total investment

  • @huanchaoli3004
    @huanchaoli3004 วันที่ผ่านมา

    I do not care about the price because I purchase schd 5 dollars per day.

  • @NextGenArt01
    @NextGenArt01 วันที่ผ่านมา

    Competition from bonds.

  • @emsea1658
    @emsea1658 วันที่ผ่านมา

    How would a pure drawdown strategy worked out for someone living off investments from ~2000 to 2014? Terribly, is the answer. Now if they had a portfolio of dividend etf for bare essentials combined with a growth etf or total market etf they'd have done great. They'd have paid their bills and excess cashflow could be reinvested in broad total market or growth, in effect particiapting in one of the best buying opportunities of our lifetime. Thats what works for me at least. I will have about ~750k in dividend etf while still working and all excess cash from dividends and w2 will go into vti, vug or similar like schg. anytime market is at all time highs and need to pay yourself a big dividend, sell the growth shares. when the cycle goes into recession or a bubble bursts, dividend etf overall will still pay if i lose my job.

  • @doublet__7417
    @doublet__7417 วันที่ผ่านมา

    Number 1 problem people have with schd.....buying it to start with. Schd is the most over hyped and under delivering etf on the market. Far better options available

    • @danielsvids7325
      @danielsvids7325 วันที่ผ่านมา

      You high?

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      I agree CGDV is a better option. We mentioned that in our first SCHD video ~9mo ago 😁

    • @dougmanck4149
      @dougmanck4149 17 ชั่วโมงที่ผ่านมา

      ​@@FundamentalsofFinance Don't be a short term investor. Look at the total return over the long term

  • @AlexKelley-CPA
    @AlexKelley-CPA วันที่ผ่านมา

    Thanks for the video

  • @badass6656
    @badass6656 วันที่ผ่านมา

    Isn't a strong currency one that goes up over time?

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      Well, that would be a strengthening currency. But it could be strengthening from a very weak position and still not be strong yet.

  • @philschiavone101
    @philschiavone101 วันที่ผ่านมา

    SCHD was on sale today. So I bought some.

    • @bribradt3450
      @bribradt3450 วันที่ผ่านมา

      On sale compared to last month. Might be on sale next month compared to this month

    • @philschiavone101
      @philschiavone101 วันที่ผ่านมา

      @ then I will buy a little more.

    • @bribradt3450
      @bribradt3450 วันที่ผ่านมา

      @philschiavone101 good luck

  • @dougmanck4149
    @dougmanck4149 วันที่ผ่านมา

    You still don't understand the stock vs bond investing decisions investors make. So to put it another way, if bonds yielded 30% don't you think a lot of investors would move from dividend stocks to bonds? And the reverse is true when bond yields go really low.

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      There are bonds that yield 30%. I don't see a lot of investors buying Turkey's debt in place of stocks. I'm not saying no one would every make that choice to switch to treasuries, I'm saying they shouldn't. This video is about mistakes people make with SCHD. If you owned treasuries and then moved to SCHD because Treasury rates went down to 2%, that would be a very dangerous decision because you'd be taking on a significant amount more risk. Treasury bonds and SCHD are absolutely not alternatives for each other. But you're right, I'm just a CFA charterholder and career investment professional, I probably don't understand.

    • @dougmanck4149
      @dougmanck4149 17 ชั่วโมงที่ผ่านมา

      ​@FundamentalsofFinance Your theory is correct but it doesn't give with reality. The point is what investors actually do not what they should do. Investors will move to SCHD if interest rates drop drastically which will boost the price of SCHD. Simple demand theory. But yes every CFA is taught to stick to the golden 60/40 or whatever percentage split you want to choose rather than do the research to maximize returns. Safety first

  • @masoncnc
    @masoncnc วันที่ผ่านมา

    I'm +15% on JEPQ. What to transfer into?

  • @dougmanck4149
    @dougmanck4149 วันที่ผ่านมา

    It's total return that matters, not just price appreciation. If the price of two stocks rise by the exact same percentage each year but one of the two also pays a dividend wouldn't you prefer one over the other?

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      I would only every consider total return so if one had a higher return, yes i would prefer that. I would think anyone would

    • @QuakerPop
      @QuakerPop วันที่ผ่านมา

      If you are in a regular (not tax advantaged) account, dividends are INFERIOR. They are taxed as income. Other appreciation is taxed as a capital gain, which I substantially favorable tax treatment over dividends

    • @dougmanck4149
      @dougmanck4149 17 ชั่วโมงที่ผ่านมา

      ​@@QuakerPop No, qualified dividends are taxed as LTCG.

    • @dougmanck4149
      @dougmanck4149 17 ชั่วโมงที่ผ่านมา

      ​@@FundamentalsofFinance okay, thought you said price appreciation was the determining factor in the video

  • @badass6656
    @badass6656 วันที่ผ่านมา

    We can see you have a mindset of prioritising total return. This is not the same as the income investor mindset. I feel you did not fully understand the comment from the income investor. In your model you assume the yield is fixed relative to the capital value. My guess is the comment meant the income is fixed or increasing so that if the price falls the yield will increase. It is a matter of mindset neither is right or wrong. Focussing on rising cashflow can in the long term produce capital growth as the assets providing that cash become more valuable over time. Rising total returns can deliver more cash over time particularly if the yield is fairly constant.

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      Right but that's a misunderstanding of how income and yield work. Yield is the last year of div payments divided by the current stock price. If the stock price goes down, the yield goes up in that moment. Your income didn't change but the yield %will appear higher. But going forward, if the company isn't doing well, eventually it will have to cut its dividend. So, price appreciation is not something you can ignore. On the other hand, what I'm trying to explain to people is that total return is the only thing that matters. If you have money in your account you can create an income stream. If you don't, you can't. I can't tell you how many people i hear say they hate this ETF or that one because it cut its dividend one month... just an unnecessarily stressful way to live imo.

    • @Quest88
      @Quest88 วันที่ผ่านมา

      I agree dividends are based on company performance/earnings vs stock price, which is your argument, but they are related. He may be making the assumption that a negative forecast on earnings is the reason for the lower the stock price - assuming the forecast comes true, this would align the two views. Of course markets are never fully efficient, and companies could also force themselves to pay a dividend that they cannot afford in short-term, so that's why there's always volatility.

    • @badass6656
      @badass6656 วันที่ผ่านมา

      @@FundamentalsofFinance We all know how income and yields work but do not all invest the same way or have the same mindset.

  • @DEEZEEMTB
    @DEEZEEMTB วันที่ผ่านมา

    SCHD is a long play and a good base for some portfolios

  • @mjs28s
    @mjs28s วันที่ผ่านมา

    @5:00 That argument that you make has nothing to do with the comment. The comment, even the part you highlighted, clearly states, "The income stream is more important than the price appreciation...." Your argument starts of with an income that is based on yield and then you have the price drop. Well, that immediately would cause the person who posted the comment to take notice. They said the INCOME was more important, not yield, Yield is your appearing to strawman. Also, more important doesn't mean 'the only important thing'. Two things can be important and desired but one can have priority over the other and that doesn't mean that you completely ignore what the other is doing because one is ranked more important than the second thing.

    • @badass6656
      @badass6656 วันที่ผ่านมา

      Seems I picked up on the same point.

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      Well I'm responding to many comments along those same lines, not just that one, and there is a key misconception that only the income matters. If it goes down, whatever. Incorrect. Your future income is based on the share price/NAV. That's what I'm explaining here. And, mathematically, the income stream has literally 0 relevance to your outcome (except sometimes for tax reasons). Unpopular opinion on TH-cam but the CFA institute agrees. I tried to explain why... that you can create your own income stream if there's money in your account and your income stream will inevitably fall if the value of your investment goes down over time but maybe i didn't do a good job since it doesn't seem like that was clear.

  • @Fezziwig-financial
    @Fezziwig-financial วันที่ผ่านมา

    Your yield/income example is wrong on too many levels to explain, the math is just wrong

    • @DonaldDunlap-s1q
      @DonaldDunlap-s1q วันที่ผ่านมา

      You are correct he missed it

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      Yes, of course, that's what a simple example means... It was simplified to make it easy to understand. Also things don't go up or down exactly 10% each year and these are fake hypothetical investments.

  • @khanbus
    @khanbus วันที่ผ่านมา

    Could you create a video comparing JAAA, JBBB, ECC, and CLOZ ETFs, highlighting their differences and associated risks?

  • @khanbus
    @khanbus วันที่ผ่านมา

    xxx

  • @bribradt3450
    @bribradt3450 วันที่ผ่านมา

    Problem is, nobody can predict anything. You can buy low, and it goes lower. You can sell high, and it goes higher. I dont invest in SCHD. But set and forget is the best way to go. Dont focus on short term movements

    • @FundamentalsofFinance
      @FundamentalsofFinance วันที่ผ่านมา

      Yep 100% agree. That's why I said it's better not to react at all but if you must, trying to buy low is better than chasing what's hot

    • @jayk9068
      @jayk9068 9 ชั่วโมงที่ผ่านมา

      Value is better than momentum in other words? Hard to find an etf with value rn!

    • @bribradt3450
      @bribradt3450 9 ชั่วโมงที่ผ่านมา

      @@jayk9068 SCHD is a large cap value fund