10-26-2014, 01:49 PM
Any thoughts on the ETF SCHD - Schwab U.S. Dividend Equity ETF? It seems to be a a model portfolio for DG Investors, but it provides instant diversity of ~100 stocks, and expense ratio of only .07%, and no commissions(if you have schwab account). There are also some quality requirements to be in the fund as seen below:
In order to be eligible for inclusion in the underlying index, stocks must have at least 10 consecutive years of dividend payments. The universe of stocks that meet that criteria are evaluated on four characteristics that are used to determine which are included in the index:
Cash flow to total debt
Return on equity
Dividend yield
Five-year dividend growth rate
Top 10 holdings are below.
VZ
JNJ
PFE
PG
MSFT
T
XOM
CVX
INTC
KO
I still have questions on capital gains and how they are treated because as I understand it ETFs are supposed to distribute all capital gains. Which if true, I don't understand how they know at what point you bought or sold the shares in relation to when the stocks in the fund were sold/adjusted. I have sent them an email on this topic.
In order to be eligible for inclusion in the underlying index, stocks must have at least 10 consecutive years of dividend payments. The universe of stocks that meet that criteria are evaluated on four characteristics that are used to determine which are included in the index:
Cash flow to total debt
Return on equity
Dividend yield
Five-year dividend growth rate
Top 10 holdings are below.
VZ
JNJ
PFE
PG
MSFT
T
XOM
CVX
INTC
KO
I still have questions on capital gains and how they are treated because as I understand it ETFs are supposed to distribute all capital gains. Which if true, I don't understand how they know at what point you bought or sold the shares in relation to when the stocks in the fund were sold/adjusted. I have sent them an email on this topic.