I have about $35,000 invested in SCHO in a brokerage account. This is effectively an emergency fund so I want it in something that I can basically count on not losing value while also making decent income. When I did my taxes, I realized that SCHO generates ordinary dividends instead of qualified dividends, so it gets taxed as ordinary income (24%) instead of capital gains (15%). The difference is $135 in taxes, which isn't going to ruin me. But I'd rather pay less in taxes if I can. Is anyone aware of an alternative to SCHO that would have qualified dividends?