Florian (@FlorianKe) on getquin

2Yr·

Opinion for $WQDS

Hello dear community,

I am just before a decision that is not really easy for me and ask for your advice...

currently I am since 2020 November the Ishares MSCI World, this I have chosen as an entry into the topic of stock market finance etc.. Especially in the beginning is always recommended to save this to get a feel for the subject.

In the course of time (is not yet so much with me) in the stock market I have noticed more and more that I am interested in dividend stocks and divi growth stocks and I find it incredibly reassuring to receive a small monthly rain of dividends. That's why my portfolio is more trimmed to dividends and most recently to divgrowth. Feel so simply comfortable :)

The consideration I currently have is to sell my shares in the World ETF and shift into the ETF described below or even leave it out and buy individual stocks or increase my positions...I'm having a pretty hard time making a decision though 🧐

Hence my questions:

Did you guys feel the same way?

How do you guys deal with it?

Does something like this make sense?

How would you act?

Thank you and love Grüße🙋🏻‍♂️

11 Comments

Lorena@Lorena

2Yr

Hey :) I can roughly understand your thought process, but I wouldn't do it that way. I just had a quick look, but it seems to me that Big Tech, for example, is not included in the ETF and only because they pay little or no dividend. And sure you'd pass on something like Nvidia? The ETF contains just under 7% tech. The performance is also worse than a normal MSCI World and it is more expensive. If dividends are good for you from a psychological point of view, I would rather pick individual stocks and leave the World in as a good performing basis. I would not exchange good performance for less good performance. For me, the performance and growth would be more important than the dividends, because normally you let a World run for a few years. At least that's my view. 😊

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How$y 🗽@Howsy

2Yr

In my opinion, building up a dividend portfolio only makes sense from a size of about 90 to 100K. You can read about my exact motives in the 2 posts of mine, the links to which you can find on my profile. To your question: I would not shift under any circumstances. Keep your existing accumulator running, otherwise you'll be interfering with compound interest at work. If you really want dividends, I would go for single stocks as @Lorena already said. But beware: stock picking is work. If you like it more comfortable, then of course go for an ETF. I would prefer option one, because I actively decide what ends up in my portfolio and what does not.

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Saschko@WarrenamBuffet

2Yr

So I understand, you can do it, but if you do I would not take this dividend ETF, but one that performs better like these for example: SPDR S&P US Dividend Aristocrats UCITS ETF https://de.extraetf.com/etf-profile/IE00B6YX5D40 Fidelity US Quality Income ETF (Dist) https://de.extraetf.com/etf-profile/IE00BYXVGX24 Fidelity Global Income https://de.extraetf.com/etf-profile/IE00BYXVGZ48 Regarding poor performance of DIVI Etfs, well, these are not so bad compared to the MSCI WORLD https://de.extraetf.com/etf-comparison?etf=IE00B4L5Y983,IE00BYXVGZ48,IE00B6YX5D40,IE00BYXVGX24 But yes the above is not so great :) I myself have the Global as a small admixture. You just have to look at the cluster risk, because many positions of the ETF are already in the MSCI World. Or just as we all say here already a few individual shares, is of course also greater individual share risk clear ...

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TimUppi@TimUppi

2Yr

I personally would not switch but you seem to have thought it through and if you prefer a dividend ETF and feel comfortable with it why not. But what would also be important to consider would be what the "switch" costs you in taxes, fees, etc. Should that turn out rather high you could also consider letting the World run and in the future just to save the dividend ETF.

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GreenWash@GreenWash

2Yr

Hey, try the core-satellite strategy and build up smaller positions around your MSCI World that also pay dividends. Your core remains the MSCI World and the dividend payers (whether dividend-paying ETFs or individual stocks) that you feel comfortable investing in are virtually satellites around your core. 🛰 :)

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MORE MONEY BOY 🤑@EnjoyCapitalism

2Yr

Cannabis calms me down, so I don't need any dividends. No intoxication advice.

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Divmann@Divmann

2Yr

There are dozens of dividend aristocrats in the USA, but only a handful in Europe. In order to somehow get the rest of the world into the ETF, you have to lower the requirements. That's why I don't like dividend ETFs (even if they focus on quality and not just high yields) outside the US. I don't like everything about the World either, but I would always prefer it to a global dividend ETF. No investment advice

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Janek@Janek93

2Yr

In itself, a dividend ETF is a good thing for your goals. However, the MSCI World is much more diversified and performs better. The tech component of the dividend ETF is lower than that of the MSCI World, so if you want to invest in tech via an ETF, it looks rather worse. Why don't you adjust your savings rate for the World a little and save in the dividend ETF on the side, then you have taken advantage of both.

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Matthias@I77U

2Yr

$FGEQ This could be added to the MSCI World until the tax-free allowance is exhausted. With a 2.5% payout, you would have to save around 30k. The performance is also better than that of the high dividend ETFs.

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Adrian Krahmer@Adkr

2Yr

You already have individual stocks in your portfolio that pay dividends. Why not just carry on? I would also leave the World in and place individual stocks around it, as you are already doing. What speaks against your apparently already existing strategy/approach?

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