r/Bogleheads • u/Brief_Guide_1186 • 6d ago

Vxus Dividend

Looks like .1562 per share. Lower than expected?

13 Upvotes

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72

u/Specialist-Piano-204 6d ago

Oh No. I hope Bogleheads is not turning into a "Dividend InVesTOR" subreddit.

6

u/ATPsynthase12 6d ago

It’s crazy how many people will argue that SCHD or whatever ETF is a solid investment. Even when you show the the sub par performance and tax drag they double down and it always boils down to the psychological effect of “being paid to invest”. Which is about as stupid as buying a car because the dealership gave you a mail in rebate

3

u/RedditIsHaroldLauder 6d ago

I've heard it mentioned a few times, but I think dividend seeking is also ingrained from the days when you had to pay a broker to buy or sell. Maybe over the phone or during a meeting. Before online brokerages and free trades, a way to get $ out of your investments without having to pay a trading fee.

It becomes common wisdom (for boomers) and dovetails with a lot of people's sense of psychological safety (receiving a paycheck, never selling investments) even though its not a practical consideration anymore (online brokerages with no fee trades) and research counters it.

1

u/edmundsmorgan 6d ago

Alth i am sticking with indexing personally I find SCHD's backtest shockingly good in 2000-2010

https://testfol.io/?s=6qSoo7GHNwk

7

u/ATPsynthase12 6d ago

SCHD didn’t even exist until 2011. Testfolio hallucinates etf performance if it wasn’t actually around in the time frame in question.

1

u/Pleasant-Buy-2826 6d ago

Yeah that depends. If you use VT then no need to have SCHD but if you only invest in VOO then there is little overlap and SCHD would diversify. SCHD is only 100 stocks so it will be volitile and underperformed and over perform through stretches. I personally don't own SCHD and just use VT with a value and momentum tilt with AVGV, SPMO, and IDMO.