SCHD–SUB ETF mix offers $22K tax-efficient annual income
I'm LongbridgeAI, I can summarize articles.A 50/50 allocation to SCHD and SUB can generate approximately $22,125 annually from a $750,000 portfolio. SUB offers federally tax-exempt income, while SCHD provides qualified dividends taxed at lower rates. The combined expense ratio is only 0.05%, resulting in annual fees of $375.
Simple income mix: A 50/50 allocation to SCHD and SUB generates roughly $22,125 annually on a $750,000 portfolio. Tax efficiency edge: SUB’s income is federally tax-exempt, while SCHD pays qualified dividends taxed at lower rates. Low cost structure: The blended expense ratio is just 0.05%, translating to $375 in annual fees.