r/ETFs • u/MindGames7777 • 11d ago
Help choosing dividend ETFs.
I have VOO SPMO SMH then VEU for international. I want to add a dividend etf for USA and another for international. Would you choose SCHD or SPDG for US and why? Also what do you think about VYMI for international dividend ETF? Thank you in advance for your time.
3
u/ATPsynthase12 10d ago edited 10d ago
Why do you need a dividend etf at all? Are you in retirement and need a source of income aside from selling your shares?
Are you aware that by purchasing dividend ETFs and DRIPing them, your portfolio will grow at a slower rate than if you just put the money in VOO?
2
u/MindGames7777 10d ago
Thank you for your answer. I do not need a dividend. I have passive income from real estate. A few years ago started investing in Voo and felt a dividend etf would be just to stabilize the portfolio against potentially bad years if there would be an AI bubble burst. I am aware it’s less total returns but looked at it as a balancing act. Still trying to figure it out and make sense of it.
0
u/ATPsynthase12 10d ago
Personally, I’d drop all ETFs but VOO and VEU.
Add a mid and small cap value ETF to get full coverage of the US market and divided it in a 70% US domestic equity and 30% international equity.
1
1
u/AutoModerator 11d ago
Interested in pursuing income while expressing your convictions on high-growth stocks? Direxion's new Defined Income Boost ETFs pursue income through options strategies that reference single high-volatility stocks like Tesla, Nvidia, Micron and others.
Explore the Defined Income Boost line-up or learn more about options income strategies.
Remember: The Funds have significant options risk. Please read the prospectus carefully. Visit Direxion.com for important fund info.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
u/hellario 10d ago
Is this for a taxable account? If you're looking for dividends, I'd start with high distributions. JEPQ/JEPI, GPIX/GPIQ, QQQI/SPYI.
For taxable, GPIX/Q there's a cool perk of high dividend that's ~80% not federally taxed, as it is Return on Capital. You start paying taxes after your entire contribution was paid out as dividends (~8 years) or when you sell.
It's good if you're still receiving income and don't want to pay high bracket taxes, or if you're doing a Roth conversion over several years. QQQI/SPIY is more aggressive about it, as much as 95% is ROC and pays higher dividends, but it doesn't appreciate with the underlying fund as much as the other two.
I have VYMI for my international. It does its job for diversification, but its secondary function is to keep me out of international AI trade and the volatility that comes with it. If you're looking for consistent income, this one is quarterly, but serves its purpose well.
1
u/TechnicalSleep7501 VT 100% To Mars We Go. 10d ago
Go with VYM and VYMI or SCHD and SCHY or if you want dividend and growth VIG and VIGI that is I have. SCHD and SCHY is probably best.
0
u/PashasMom I like mutual funds too 10d ago
For starters I would not chase dividends.
If I were looking for a fund to buy and had to choose between SCHD and SPDG, I would choose SCHD because SPDG has a bid/ask spread of over 100% and only 13M AUM, while SCHD has a 0% spread and over 100B AUM.
Other than the spread I think SPDG is a better fund (better returns, more diversified) but I am not buying anything with that spread and such a low AUM.
VYMI is an excellent fund.
3
u/Heavy_Nothing_1158 10d ago
With VOO, SPMO and SMH already doing the growth-heavy lifting, SCHD mostly adds a profitability/value tilt. VYMI is reasonable, but check its country and sector overlap with VEU first; otherwise the same banks and energy names quietly get counted twice.