Author argues SCHD is unsuitable for investors under 40-55, favoring growth-oriented S&P 500 exposure like VOO due to superior historical returns and tax inefficiency of dividends.
VOO — LONG The author argues growth-based S&P 500 exposure like VOO is the right choice for young investors, citing that since 2011 the S&P returned 436% versus SCHD's 236%. The mechanism is that younger investors with long horizons should prioritize total growth over dividend income, and dividends can create tax drag. The author states liquidity is not a concern for young people and that growth-based stocks/ETFs should be 100% of the goal.
Since 2011, S&P is 436% and SCHD is 236%. Also, SCHD can be a tax nightmare. Liquidity should not effect young people, growth-based stocks and or ETFs/mutual funds should be 100% the goal.
SCHD — AVOID The author contends SCHD is irrelevant for investors below age 40 (really 55), pointing to underperformance versus the S&P since 2011 (236% vs 436%) and tax inefficiency from dividends. The argument is that dividend-focused strategies sacrifice growth and create tax drag for young investors who don't need income.
I haven’t budged on my opinion that SCHD is irrelevant for people below the age of 40 (really 55, but I’ll bite).
This Reddit post, published January 09, 2026, features u/Ledzeppelinbass discussing VOO, SCHD. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: u/Ledzeppelinbass · Tickers: VOO, SCHD