The Schwab U.S. Dividend Equity ETF (SCHD) provides solid dividends, yielding 3.9% and boasting an annual total return of around 12%. However, recent stagnation in price growth has led some investors to reconsider their portfolios. For instance, a Redditor considering moving $300,000 from SCHD to the NEOS S&P 500 High Income ETF (SPYI) and NEOS Nasdaq-100 High Income ETF (QQQI) is weighing the benefits of higher yield potential. Both SPYI and QQQI offer significantly increased yields (12.11% and 14.4%, respectively) by utilizing covered call strategies, appealing to those seeking immediate income.
While SCHD has offered reliable dividends and a respectable average total return since 2011, some investors are turning to higher-yield ETFs like SPYI and QQQI for increased income.
Investors have expressed frustration at SCHD’s stagnant price growth, which has prompted consideration of transforming their holdings into actively managed ETFs that focus on robust income strategies.
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