Fidelity US Quality Income ETF Forum

Part I

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So far, the core of my portfolio has consisted of the MSCI World $HMWO (-0.41%) and has brought me around 26% price gains and a few distributions. However, comparisons and back tests have shown that the MSCI World is not the best choice for the portfolio.

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The satellites consisted mainly of shares in well-known, large and often safe companies. I have gradually changed this over the last few weeks and you could say that the portfolio is changing in the direction of growth stocks with significantly higher risk and return potential. Whether and how successful I will be here is not too important in principle, as I still have a solid core, but it is precisely this core that is in the dock today.

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After spending the last few weeks looking at my portfolio and getting a lot of positive input, information and tips here on Getquin.

I have found the following ETFs that could perhaps form a better core for my portfolio.

A) The best known first, the S&P 500 $IUSA (-0.02%) . If I were to start investing again today and did not know the following ETFs, I would opt for this one instead of the MSCI World.

B) The ETF mentioned by @Epi mentioned ETF, $WTEF (-0.04%) . A portfolio concept consisting of 60 % US equities + 40 % bonds. Almost like the ARERO 😜 $LU0360863863 (+0.45%) only much better. Because the performance so far has been very close to that of the S&P500. And I think that in turbulent stock market years, bonds will provide stability and returns. However, the fund is only one year old and so there is still little data available.

C) Then we have my favorites so far, 2 actively managed ETFs from JP Morgan.

One is the global variant $JRDG (-0.31%) including emerging markets. Here, undervalued companies are overweighted according to fundamental data. Since its launch in September 2021, this fund has returned 11.88% p.a.

And then the counterpart to the S&P500 $JRUD (+0%) the aim of this ETF is to outperform the S&P500 and to this end it also includes US equities that are not included in the index.

Since launch, December 2019, 16.5% p.a. has been achieved.

D) Then we have four dividend growth stocks. These have also beaten the MSCI World at times: $TDIV (-1.44%)
$FUSD (-0.19%)
$FGEQ (-0.67%)
$GGRP (-0.81%)

The $FUSD (-0.19%) with a return of 13.66% p.a. since its launch in March 2017.

E) The iShares Dow Jones Global Titans 50 $EXI2 (-0.1%) which has outperformed the S&P500 for many years and has realized 17.38% p.a. over the last 5 years, for example.

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I did some back testing to see how you could build a portfolio with these ETFs. However, most ETFs have not been around long enough to provide meaningful data. I also find the backtest very tedious as no perfect allocation is calculated or suggested, instead I have to work my way forward percentage by percentage. In short, I was not successful in backtesting.

I used these websites for the tests and comparison:

https://www.portfoliovisualizer.com/backtest-portfolio#analysisResults

https://curvo.eu/

https://extraetf.com/de/etf-comparison?products=IE0031442068-etf,IE000KF370H3-etf,IE000HFXP0D2-etf,IE00BJ06C044-etf,NL0011683594-etf,IE00BYXVGX24-etf,IE00BYXVGZ48-etf,IE00BZ56RN96-etf,DE0006289382-etf

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I would prefer to take them all and only buy the ones that are doing badly at the moment. But that wouldn't work because these ETFs overlap a lot and the correlation is therefore very high. ☹️

Perhaps the most dispensable would be the "dividend ETFs", $TDIV (-1.44%) and $GGRP (-0.81%) . These have some of the highest fees and the weakest performance. However, these are precisely the ETFs that overlap the least with the others. $TDIV (-1.44%) could pass as Europe (55%) share of the portfolio. If you want to take Europe into account. It would be interesting for me if one region is doing well and the other is doing badly, because I could then make counter-cyclical purchases.

If overlaps and correlations are very high and costs are similar. Then it wouldn't matter whether I have them all in small chunks or large shares of one or a few ETFs. The difference should then be marginal. 😅

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Should I really only choose one or a few? What am I missing out on? How do you find the right one(s)? Has anyone built a portfolio from these ETFs? How do you make the right decision?

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Part II

https://app.getquin.com/de/activity/HQueJcsExE

I would like to liquidate one of these two ETFs:

$FGEQ (-0.67%)

$FUSD (-0.19%)

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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 (-1.44%) (US share only 29%)

$GGRP (-0.81%) (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?

The enemy of the best is often the good.

I have these ETFs in my portfolio:

$TDIV (-1.44%)

$GGRP (-0.81%)

$FUSD (-0.19%)

$FGEQ (-0.67%)

Some, if not all, have outperformed the MSCI World at times.

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At the moment they are all about the same weighting and should be increased further. While I am trying to implement a growth strategy with equities, these ETFs are intended to generate passive income.

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Objectively speaking, I would have to sell the $FUSD (-0.19%) as it further increases the US share and overlaps heavily with at least two of the other ETFs. In other words, it reduces diversification in all respects.

But on the other hand $FUSD (-0.19%) also the one with the best past return and will probably remain so in the future.

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One approach could be to take the US weighting and overlaps into account in the ETF weighting of the portfolio and implement it as follows, for example:

$TDIV (-1.44%) 40%

$GGRP (-0.81%) 30%

$FGEQ (-0.67%) 15%

$FUSD (-0.19%) 15%

If the ETFs were weighted in this way, the following allocations would result:

Countries/Regions:

USA 56.4%

Canada 4.4%

Europe 33.2%

Asia 5.4%

Top 10 weighting:

$MSFT (+1.59%) 3%

$AAPL (+0.17%) 3%

$VZ (+0.13%) 2,3%

$CVX (-0.37%) 2,1%

$ROG (-1.18%) 2%

$NVDA (+2.32%) 1,9%

$PFE (+0.08%) 1,7%

$HSBA (-2.13%) 1,6%

$IBM (-0.98%) 1,4%

$AVGO (-1.21%) 1,4%

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What do you think of this allocation example? Do you have any suggestions for improvement or comments?

Saving up: Gold + All-World ETF

Hello dear community,

I have a question for you on the subject of long-term saving and gold:

I have 6 savings plans with dividend ETFs running, always two per payout interval with growth ETF and high payout combined. In addition to the DIV ETFs, I also have REITS and BDCs for dividends, which I would also like to expand further. Of course there are overlaps!

I feel comfortable with this and would like to continue saving in this way:

DIVIDEND ETFs | January, April, July, October

$ISPA (-1.36%) + $EXX5 (-0.84%)

DIVIDEND ETFs | February, May, August, November

$FUSD (-0.19%) + $IMEU (-1.43%)

DIVIDEND ETFs | March, June, September, December

$TDIV (-1.44%) + $VUSA (+0%)

Now the question arises for me: how can I diversify even further or save in an accumulating manner?

The following would be considered

$EWG2 (-0.64%) and then also sell tax-free after a holding period of at least 1 year if the trend is positive and generally $FWRG (-0.55%) save bluntly and leave it. Possibly also $BTC (+1.34%) via Bitpanda or similar (not via Neobroker)

What is your opinion on saving the Invesco All-World and gold in addition to the dividend ETFs, as compensation when there are general price slides?

Which ETF would you prefer for a long-term investment (>20 years) in terms of dividend growth. I only want it as an addition. The country weighting is therefore not important for the time being.

I have looked at these so far:

$FGEQ (-0.67%)

$FUSD (-0.19%)

$GGRP (-0.81%)

$SPY5 (-0.01%)

I have to be honest, I like them all quite a lot, although I'm almost leaning towards the $SPY5 (-0.01%) even though it is not geared towards dividend growth, it has increased the dividend substantially in the past. Combined with the share price performance and the low cost of 0.03, I find it really attractive.

What do you think?

Do you have any other suggestions?

Thank you for your opinions.

#ie00byxvgx24

Swarm knowledge

Hey guys,

Can one of you tell me why I can't make one-off payments on Scalable Capital $FUSD (-0.19%) but can apparently only buy via a savings plan.

The sell button lights up normally and I can sell, but I can't press the buy button.

Thank you very much in advance 😊

Dividend portfolio - later growth/blue chips

Hello and good evening everyone!

I would love to get some feedback on my dividend portfolio!

• My goal is to get over €2,000 in dividends and more per year (I have €2,000 in the exemption order anyway due to marriage) and I would very much like to receive monthly cashflow.

• I always have one strong dividend ETF and one growth ETF per quarter because I want to be broadly diversified:

• 1 | January, April, July, October

$EXX5 (-0.84%) and $ISPA (-1.36%)

• 2 | February, May, August, November

$FUSD (-0.19%) and $IMEU (-1.43%)

• 3 | March, June, September, December

$SPYD (-0.28%) and $TDIV (-1.44%)

• I also came across REITS and BDCs not long ago, which I know tend to go sideways, but hopefully in a few years I'll have the investments in without buying new positions.

• In the long term, I would rather switch to growth ETFs (or blue chips) for good growth, but I am also considering thematic ETFs such as

$IUIT (+0.35%)

$IUHC (-0.68%)

$ASWC (-0.52%)

I find simply saving in the S&P500 with a savings plan kind of boring, and I don't know why.

I find it very difficult and too time-consuming for me to find the right time to invest in Microsoft, AMD, Stryker, Novo Nordisk, Cadence Design Systems, Walmert, Alphabet etc., for example.

I would keep my €500 savings plan on the 6 dividend ETFs running, but then add the themes ETFs to the savings plan rate.

What's your opinion - I'm curious!

Regards

Why is the $FGEQ (-0.67%) in contrast to the $FUSD (-0.19%) so favored ? especially when many use it as an addition to an $VWRL (-0.56%) which already has a good diversification as All World. Therefore the $FUSD (-0.19%) should be considered "more sensible" as an addition due to its performance, or am I missing something ?