I Compared VOO, QQQ, and SCHD For 10 Years (Here's The Winner)

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The analysis compares the performance of QQQ, SCHD, and VOO over a 10-year period, focusing on total return, risk-adjusted return, and income generation. QQQ, tracking the Nasdaq 100, demonstrates the highest total return, with a 10-year growth of approximately 650%, ending with a portfolio value of $650,000 from a $10,000 initial investment. SCHD, focused on dividend growth, shows a 10-year total return of approximately 590%, resulting in a portfolio value of $329,000 and a monthly income of $580, with a dividend growth rate of 8.2% annually. VOO, representing the S&P 500, yielded approximately 419% over 10 years, with a portfolio value of $419,000 and a monthly income of $400. The analysis highlights QQQ's superior performance in total return but also its significantly higher maximum drawdown of 82% compared to SCHD and VOO's 33%. In terms of risk-adjusted return (Sharpe Ratio), SCHD leads with 2.62, followed by VOO with 1.68, and QQQ with 1.68. SCHD also leads in income generation, providing more than double the monthly income of VOO. The video suggests that different ETFs serve different purposes, and a balanced portfolio might incorporate all three, assigning each a specific job: QQQ for maximum capital growth, SCHD for income and stability, and VOO for broad market exposure at a low cost.

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