Thinking about selling SCHD for DIVB
My taxable account is approximately 30% CGDV, 30% FNDX, 30% SCHD, and 10% FNDF.
CGDV is my active growth arm despite the name it isn’t a true dividend ETF.
FNDX is my core foundational holding focused on RAFI Fundamental High Liquidity US Large Index. Weights companies by fundamental “size” (adjusted sales, retained operating cash flow, dividends + buybacks) instead of market cap.
DIVB to replace SCHD for higher total return expectations and less tax drag. DIVB tracks the Morningstar US Dividend and Buyback Index. Selects and weights based on actual shareholder payouts (dividends + buybacks) in dollar terms and tilts me further towards value/quality across large, but introduces medium and small cap.
FNDF is a better VXUS foreign allocation.
I don’t think I am losing out on anything by dropping SCHD for DIVB besides becoming slightly more concentrated in existing holdings.