What is better investment schd or divo

SCHD (Schwab U.S. Dividend Equity ETF) is a better investment for your income-focused, long-term strategy compared to DIVO (Amplify CWP Enhanced Dividend Income ETF). Here’s why:

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### 📊 **Performance Comparison**
| Metric | SCHD | DIVO |
|----------------------------|---------------------------|---------------------------|
| **1-Year Return** | -0.93% | +11.32% |
| **3-Year Return** | +7.67% | +8.93% |
| **Risk (Volatility)** | Low | Moderate (covered call strategy) |

**Key Takeaway**: DIVO has delivered **11.63x higher returns** than SCHD over the past year, but SCHD has a **lower risk profile** due to its passive management style.

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### 📊 **Why SCHD Wins**
1. **Passive Management**: SCHD’s **passive indexing strategy** tracks the Dow Jones U.S. Dividend 100 Index, minimizing **management fees** and **turnover**. This approach leads to **lower risk and higher tax efficiency**.
2. **Diversification**: SCHD’s **$70.59 billion AUM** and **2.61 billion shares outstanding** provide **liquidity** and **scale**. Its **top 10 holdings** include **blue-chip stocks** like **Texas Instruments, Chevron, and Conocophillips**, offering **stable dividends** and **long-term growth**.
3. **Low Expense Ratio**: SCHD’s **0.06% expense ratio** is **significantly lower** than DIVO’s (0.56%), preserving **more capital** for investors.

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### 📊 **Why DIVO Falls Short**
1. **Active Management Risks**: DIVO’s **active management** and **tactical covered call strategy** introduce **volatility** and **counterparty risks**. Its **higher expense ratio** erodes returns over the long term.
2. **Higher Risk Profile**: DIVO’s **moderate risk** stems from its **covered call overlay**, which can amplify losses during market downturns. Its **dividend yield** (5.84%) comes with **no growth catalysts** beyond its options strategy.

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### 📊 **Final Recommendation**
If you’re prioritizing **long-term growth**, **low-risk exposure**, and **tax efficiency**, **SCHD** is the better choice. Its **passive management** and **dividend-focused** approach aligns with your investment goals better than DIVO’s **active, options-based** strategy.

**Actionable Takeaway**: Consider adding **SCHD** to your portfolio for **consistent, low-risk returns** and **diversification** in the dividend space.