Author questions the appeal of SCHD, arguing bonds offer better income and a growth index offers better appreciation.
SCHD — AVOID The author argues SCHD is unattractive because its 3.75% dividend yield is lower than the 4–7% returns available from moderately risky bond investments, and using equity exposure for income sacrifices bond diversification. He also contends a higher-growth stock index would be preferable for capital appreciation. He would only consider SCHD if already overexposed to bonds and wanting stock-based fixed income.
while the bond market doesn’t grow like stocks, there’s plenty of ways to make smart bond investments that’ll give you 6-7% ish returns with a little risk. 4-5% moderate risk. Either of these options provides higher payment’s than shcd’s 3.75%