Do you want your money to grow, or do you want it to pay you right now?

@markcallowayofficial

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SCHD

SCHD, or the Schwab U.S. Dividend Equity ETF, is an investment fund focused on holding dividend-paying stocks for income and potential growth.

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Why it worked

The video effectively breaks down a complex financial topic into a simple, relatable choice between growth and income, using clear examples and historical data to support its points. The direct comparison and actionable advice tailored to different life stages make it highly relevant to a broad audience interested in personal finance.

Summary

This video compares two ETFs, VOO and SCHD, to help viewers decide which is better for their financial goals. VOO focuses on growth by tracking the S&P 500, while SCHD focuses on income by holding dividend-paying stocks.

Structure

1Introduction: VOO vs. SCHD - Grow or Get Paid?
2VOO: Growth-focused ETF tracking S&P 500, with higher historical returns.
3SCHD: Dividend-focused ETF providing income, with better performance during downturns.

Original caption

VOO or SCHD? It’s not about which one wins. It’s about the right tool for the right job. #investing #money #finance #wealth #PersonalFinance

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Product placement

VOO: an ETF that tracks the S&P 500, representing the 500 largest companies in the US. It acts as an investment vehicle for growth. Its presence is central to the video's comparison. Removing it would change the video's topic. SCHD: an ETF that holds companies paying dividends. It acts as an investment vehicle for income. Its presence is central to the video's comparison. Removing it would change the video's topic. Apple: a company listed in the S&P 500. It merely appears as an example of a large company. Removing it would not change the video. Microsoft: a company listed in the S&P 500. It merely appears as an example of a large company. Removing it would not change the video. Amazon: a company listed in the S&P 500. It merely appears as an example of a large company. Removing it would not change the video. Nvidia: a company listed in the S&P 500. It merely appears as an example of a large company. Removing it would not change the video. Coca-Cola: a company held by SCHD. It merely appears as an example of a dividend-paying company. Removing it would not change the video. Pepsi: a company held by SCHD. It merely appears as an example of a dividend-paying company. Removing it would not change the video. Home Depot: a company held by SCHD. It merely appears as an example of a dividend-paying company. Removing it would not change the video. Verizon: a company held by SCHD. It merely appears as an example of a dividend-paying company. Removing it would not change the video. Stan Store: a link aggregator used by the creator. It merely appears as a link in the creator's bio. Removing it would not change the video.

Call to action

Let me know in the comments and smash that follow button so that we grow our net worth together.

On-screen text

VOO vs SCHD GROW, OR GET PAID? OPINION ONLY. NOT FINANCIAL ADVICE. VOO = GROWTH SCHD = DIVIDENDS

Transcript

Do you want your money to grow, or do you want it to pay you right now? That's VOO versus SCHD. Question. Two ETFs out there, but they do completely different jobs. Pick the wrong one for where you are right now, and you could be leaving real money on the table. Let's start with VOO. It tracks the S&P 500. Basically, the 500 biggest companies in the US. Apple, Microsoft, and Amazon, Nvidia. They grow, you grow. Not cash in your pocket, you're betting the whole thing getting bigger over time. Over the last 10 years, VOO has averaged around a 13% return per year. That's the wealth building engine. Now SCHD. Dividend ETF. It holds companies that pay you cash every quarter. Names like Coca-Cola, Pepsi, Verizon, Home Depot. Steady, but boring, but reliable companies. Right now, you pay you around 3.5% year. Just dividends. That money that hits your account four times a year. Total return over the last 10 years has been around 11%. A little behind VOO in growth. But the SCHD, on the other hand, only fell about 18% in the 2022 downturn. The only SCHD fell about 6%. So it's not about a clear winner. It's about the job that needs done right now. So which one fits you? The season in life you're in right now. If you're in your 20s, 30s, or 40s, you probably don't need the income right now. So VOO is your answer. That running engine, as long as possible. If you're getting near retirement, or just want cash landing in your account every quarter, SCHD earns its spot. So just think of it like this. VOO builds the wealth and SCHD that switch figure in, the season that you're in, then pick the tool that fits. So which season are you in? Growth or income? Let me know in the comments and that smash that follow button so that we grow our net worth together.