Unleash the Potential of SCHD: Why You Shouldn’t Give Up on This Investment Opportunity
Introduction
When it comes to investing, there are endless opportunities to explore. One such opportunity that shouldn’t be overlooked is SCHD. SCHD’s underlying index, the Dow Jones US Dividend 100, has been proven to outperform the S&P 500 in key metrics. Despite recent underperformance, SCHD remains a strong buy for investors looking to maximize their returns.
The Dow Jones US Dividend 100
SCHD is backed by the Dow Jones US Dividend 100 index, which has shown consistent outperformance compared to the S&P 500. This index excludes critical periods like the Tech Bubble and Great Recession, providing a more accurate representation of its performance. By avoiding these tumultuous times, SCHD’s data doesn’t fall victim to the base rate fallacy when compared to the S&P 500.
Resilience During Market Downturns
One of SCHD’s most appealing qualities is its historical resilience during market downturns. In times of economic uncertainty, such as the market turbulence of 2018, SCHD has demonstrated its ability to not only weather the storm but also generate profits for investors. This makes SCHD a reliable option for those seeking defense against volatility in the market.
Effect on Individuals
Investing in SCHD can have a positive impact on individuals looking to grow their wealth. By taking advantage of the outperformance of the Dow Jones US Dividend 100 index, investors can maximize their returns and build a more secure financial future for themselves and their families.
Effect on the World
On a larger scale, the success of SCHD can have a ripple effect on the world economy. As more investors turn to SCHD as a reliable investment option, it can contribute to overall market stability and growth. This can lead to a more prosperous economy for everyone involved.
Conclusion
Don’t overlook the potential of SCHD as an investment opportunity. Despite recent underperformance, the underlying index, historical resilience, and outperformance in key metrics make SCHD a strong buy for investors looking to maximize their returns and build a more secure financial future. Consider adding SCHD to your investment portfolio and unleash its full potential.