Kate💎 (@Iwanowitsch) on getquin

Kate💎 🙌.

@Iwanowitsch

2Mon·

I would like to liquidate one of these two ETFs:

$FGEQ (+0.06%)

$FUSD (+0.25%)

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They overlap too much. The top positions are the same. The risk figures and ratios are therefore very similar.

I know this community loves the global ETF and doesn't like the US overweight, but there are some arguments in favor of the US Quality Income in my opinion: yield and cost.

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The global Quality Income has generated a total return of 124% since inception in March 2017, while the US Quality has generated 162% over the same period.

The TER & TD are already included in this data. (In any case, the US Quality Income not only has the lower TER of 0.25%, but also the positive tracking difference of -0.14%. While the global ETF has a TR of 0.4% and costs another +0.1% in TD).

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In Europe, the MSCI World is considered a solid basic investment. I assume this is also the reason why the Fidelity Global Quality Income is the more popular one here.

In other parts of the world, however, the S&P500 is the underlying investment, which would also explain why US Quality Income has the larger fund size.

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For the sake of completeness, I would like to mention that I also have these two ETFs:

$TDIV (+0.29%) (US share only 29%)

$GGRP (-0.09%) (US share,63 %)

If you look at the overall picture, you could say that these two ETFs give me country diversification and that I should take the better and cheaper of the ETFs mentioned above?

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Long story short. Which one should I throw out? And why?

13 Comments

Rmann@Epi

2Mon

Just a tip in passing: when assessing ETFs, don't just look at the US share and performance since 2017! Keyword: hindsight bias.

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𝒻𝓇𝓊𝑔𝒶𝓁 𝒻𝓇𝑒𝒾 𝓈𝑒𝒾𝓃 🗽@frugalfreisein

2Mon

Basically, you have great arguments for both. Why don't you keep both positions and only expand one in the future? Avoid any taxes and order fees.

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Dividende4me@DividendenDepot

2Mon

First of all, I would make a decision myself and not ask a community, because most of them are only guided by their feelings and personal sentiments.
And don't listen to the small cap and emerging markets nonsense. How have they done over the last few years? Do you think it will get better in the next few years? And the US share doesn't matter at all. These are global players that do business worldwide. That includes the emerging markets. No small cap and no China ETF or anything like that will probably perform better in the future.

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W. M.@W0io

2Mon

Keep the global ETF.
In my view, overlaps don't matter at all.
You always have them anyway and they don't really bother you.

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beardonfire@beardonfire

2Mon

Sell both, keep only $TDIV and $GGRP

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Aktienfux@BulgarianSplitStocks

2Mon

I even wonder whether you should keep one of them at all. Regardless of which one, you already have a lot of overlaps with $GGRP. MMn you are already very well diversified with the ETFs mentioned below and push the 63% of the GGRP further down with the $TDIV, which I think is good. If I were you, I would throw out both Fidelity ETFs and perhaps think more about adding emerging markets and/or small caps. Not investment advice 😊

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Dividendenopi@Dividendenopi

2Mon

In my view, both are underweighted in your portfolio and your strongest position is $HMWO and you hold many stocks as individual shares.

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Yieldrology@Yield-Ahead

2Mon

For precisely these reasons, I clearly prefer $FUSD. The overlap between the two funds is relatively high anyway. The US holdings deliver constant dividend growth. The TER of 0.25 is fair. FUSD reminds me of the popular and excellently designed dividend growth ETFs $DGRO and $VIG in the USA. A clear decision for me 👍

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Maximilian@Max095

2Mon

$FGEQ Definitely not!😜

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