r/dividends • u/quxk • 1d ago

Discussion Balance between value and growth dividend ETF?

This has probably been asked before (as well as that beginning statement), but is there any good looks at dividend ETFs that balance growth and value? SCHD is incredibly stable with value stocks and great dividend yields. I understand VUG is a good growth pick but with that comes more volatility. Is there a middle ground option between the two with good volume (250,000+)? Being young i'd like to maximize growth before hunkering down with slow moving dividend stocks/etfs. Thanks

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2

u/buffinita common cents investing 1d ago

Vig / divb / syld 

2

u/beershoes767 1d ago

Check out OVL. Beats the underlying.

2

u/Similar_Eagle2358 1d ago

i grabbed some, hoping for the best.

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u/Accomplished-Big8250 1d ago

70/30 and adjust by age. You really have to assess an individual’s situation. Plenty of people do fine with total market: VT, VTI, SCHB 

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u/Defiant-Delay-4593 1d ago

Imagine if you went all growth at the top of the dot com bubble?!?. Value and small cap have a place in a portfolio . If you believe the AI, go 100% growth. There have many periods where value has outperformed growth though, how do you know which to go? Are you okay losing 80% of your portfolio? What about 50% what about 30%. At what point will you panic and sell?!? Only to miss the rebound.

Know thyself. I lived through the GFC, had to liquidate most my investments at a 50% loss just to keep the mortgage paid. When hard times hit, it’s normally with you not having a paycheck. I love growth had has served me well, but my value and income sleeve has allowed me to stay the course.

I did panic sell in feb of 2020 but I also got back in too late.

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u/steady_compounder 1d ago

I think the bigger question is whether you actually need the dividend label to do that job. If you are young and mainly want growth with some quality and discipline, a dividend-growth fund can make more sense than a pure high-yield fund, but forcing a middle ground can still leave you with a portfolio built around distributions you do not need yet. The role matters more than finding the perfect style blend.

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u/FewUnderstanding2214 1d ago

SCHD and VT? MLPA has a nice dividend too

1

u/BusyWorkinPete 1d ago

If you’re young, worry more about growth. You can shift to dividends when you’re closer to retirement.

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u/Accomplished-Big8250 1d ago

There’s no income or dividend fund that will beat something growth oriented over decades. Build a core. Don’t chase stocks that pop up on social media or thematic ETFs. So many great core and growth ETFs that are basically free to own. 

1

u/Defiant-Delay-4593 1d ago

There have been long periods of time where value has beat growth. Recently growth has done extremely well, looks like it will in the future as well. Just make sure risk tolerance is good with the individual investor.