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Yahoo Finance Suggests Simple Two-ETF Starter Portfolio: SCHD and QQQM

The pairing targets balanced income plus long-term upside via low fees with disciplined fund construction.

Overview

  • The latest guidance recommends Schwab U.S. Dividend Equity ETF for dividend income alongside Invesco Nasdaq 100 ETF for growth exposure as a durable two-fund core.
  • SCHD yields about 3.8% with 103 holdings as of Nov. 4, led by Cisco Systems, Amgen, and Lockheed Martin, and charges a 0.06% expense ratio.
  • QQQM offers broad access to leading growth companies through the Nasdaq 100, positioning it as the growth complement to a dividend-focused core.
  • Historical data cited shows dividend payers outpaced non-payers from 1973 to 2024 in annualized total return, with dividend growers performing best.
  • Total-return figures assume dividends are reinvested, a point highlighted as especially beneficial for younger investors building long-term wealth.