SCHD is the preferred dividend fund for long-term holding given its low volatility (beta ~0.69), growing dividends, and downside protection.

For this reason, I want a dividend fund, and the best option in my opinion is SCHD, which is the Schwab US Dividend Equity ETF.

Look at its beta coefficient. SCHD's beta coefficient is approximately 0.69. That is, it fluctuates 30% less than the S&P 500 index. That is exactly what I am looking for.

Meanwhile, SCHD achieved a total return of approximately 61% during the same period, and about 13% annually over the past decade. SCHD also pays dividends, currently slightly over 3%, and these dividends have grown annually since the fund was launched in 2011, i.e., for 14 consecutive years, which is an excellent performance.

The cost of owning it is almost zero, with expenses amounting to 0.06 %.

So, even in the worst years—and SCHD saw a decline of approximately 5% in its worst full year—you will still get roughly 3% in returns just by waiting.

A 5% decrease in profits while still being collected is a great advantage. The fund grows when conditions are good, and loses almost nothing when they are bad. In 2022, the year in which stocks fell by 18% and bonds by 13%, SCHD's value fell by only 3%.

This is evidence of the effectiveness of the security department in the fund. This is the ideal type of fund for this portfolio.

So, the best three-fund portfolio in the world, in my opinion, is a basic ETF like VOO or VTI, a safe and stable cash flow ETF like SCHD or maybe VTV, and a slightly higher-yielding, slightly higher-risk growth ETF like SCHG, QQQM, or VUG.

I previously had a large amount of SCHD earnings ETF in my taxable account, but I stopped adding much to SCHD within that account. I stopped adding much to SCHD within that account.

I still add to it in my Roth account, and in the taxable portion, I add VTV as I mentioned earlier in this video .