1Wk·

What do you think of the L&G Global Quality Dividend ETF?

Hi everyone,

I'd be interested in hearing your thoughts on $LDGL (-0.37%) . Has anyone here already had experience with this ETF or looked into it in more detail?

What do you think of its composition, dividend yield, and long-term growth prospects?

Do you see it as a useful addition to a long-term portfolio, or are there any drawbacks you think we should be aware of?

I look forward to hearing your thoughts and experiences.

Thank you very much,

Your Italian friend 😊🇮🇹

30 Comments

Ketchup Burak@DerJuwelier

1Wk

The ETF is still relatively new, but it's gaining popularity very quickly.

The portfolio composition and the monthly dividend payouts are just awesome.

I think it's one of the better dividend ETFs.

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erbsinator@erbsinator

1Wk

@DerJuwelier I've added it to my dividend ETF portfolio as a complement to $FYEQ and $TDIV. So far, it's performing solidly as intended; we'll see what the future holds. However, I share the concerns expressed at @Solitair regarding the equal-weight strategy.

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Mr. K.@MrKobayashi

1Wk

@erbsinator Yeah, that's pretty much spot on. Can anyone briefly summarize the pros and cons of this type of weighting for me? Because at first glance, the ETF looks pretty appealing.

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fund_manager_wedql@fund_manager_wedql

1Wk

@MrKobayashi the way I understand it is that equal weights spreads risk so much that it's difficult for the ETF to generate price appreciation because it's not as easy for a handful of holdings to make up the majority of the performance.
However, equal weight has the advantage of spreading risk across its holdings, meaning any dividend cuts from some companies won't make much of a difference.
TL/DR: it spreads risk which slows price appreciation for dividend safety.

At least that's how I think about it.

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ETFBAAS@etfbaas

1Wk

Since August it's slighty staying around the same amount.
But it's gaining popularity, and so far dividend are positive, so i have a good feeling about the next few years, let's see where it will bring my portfolio

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Ramona@Skraja

1Wk

I've had this as an addition to my satellite portfolio for the past 2 months. My main reasons: reducing my tech exposure, diversifying, and building up a small monthly cash flow. I’m “already” approaching 50 and plan to switch from growth stocks/ETFs to dividend-paying stocks in 6–10 years. I want to see over the years how this ETF performs compared to my other ETFs....
Of course, it does have the downside that the tax burden on distributions reduces the compound interest—but as long as you’re aware of that, I find this ETF incredibly exciting because it’s so broadly diversified.

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Solitair@Solitair

1Wk

I have some reservations about this "equal weight" approach. Correct me if I'm wrong, but to me it sounds like you're cutting back on winning stocks in favor of losing ones.
Dividends aren't exactly anything to write home about either, so that probably won't make up for it. But I'm only invested a small amount anyway.

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Italiener@Italiener

1Wk

@Solitair But that's exactly why the quality filter exists—to filter out only "quality stocks," right?

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Solitair@Solitair

1Wk

@Italiener SAP and Nvidia are also two high-quality stocks. However, I wouldn't give them equal weighting.

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Italiener@Italiener

1Wk

@Solitair That's a good point, but then again, who knows how long this AI hype will actually last—and that might just be the moment SAP steps in.

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Solitair@Solitair

1Wk

@Italiener That may be true, and there are pros and cons. Still, I would prefer it if, instead of equal weighting, there were, say, a cap of two or three percent on the weight of any single security relative to the total portfolio.

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Italiener@Italiener

1Wk

@Solitair As far as I know, there is a slight weighting within the ETF, meaning that, for example, a small-cap company is not the same size as a large-cap company.

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Christian@Gebsen79

1Wk

Very high exposure to the banking and insurance sectors. Tech is significantly underrepresented. The U.S. allocation has been significantly reduced....It is certainly unsuitable as a standalone global ETF; however, it seems perfectly fine as a portfolio addition.

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Italiener@Italiener

1Wk

@Gebsen79 Why do you think this ETF isn't a good fit for a core dividend portfolio?

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Christian@Gebsen79

1Wk

I didn't say that.... I think it's not diversified enough for a global ETF, but it's definitely a good addition to a portfolio in general!

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A@xxx

1Wk

@Italiener Would this be your only dividend-paying ETF?

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Italiener@Italiener

1Wk

@nitroxx Yeah, exactly, because it pays out monthly. Does yours, too?

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A@xxx

1Wk

@Italiener No, I have 5 🙈

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Italiener@Italiener

1Wk

@oxx And which ones? Where are you most invested, and why?

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A@xxx

1Wk

@Italiener $TDIV $VHYL $WINC $ISPA $JEPQ

I'm having a hard time deciding 🙈 TDIV and LDGL are equally weighted; ISPA and VHYL will be adjusted to the same size as LDGL and TDIV.

WINC and JEPQ are in a special category and will remain smaller.

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Steve91@Steve91

1Wk

I'm also invested in this ETF—the consistent dividends are really awesome.
I've added it to my long-term portfolio.

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Olli@Olli68

1Wk

@Steve91 These aren't actual monthly dividend payments either, but rather a distribution planned in advance at the beginning of the year to cover the entire year, with the final settlement taking place at the end of the year.

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Steve91@Steve91

1Wk

@Olli68 Well, let's see what the bottom line is at the end of the year 🙂

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A@xxx

1Wk

I have it in my portfolio, too; we'll see how it goes after a while—if it doesn't perform well, I'll just reduce my position.

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Italiener@Italiener

1Wk

@nitroxx I think this ETF is probably the "best" dividend ETF right now, isn't it?

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A@xxx

1Wk

@Italiener In terms of performance, the tdiv is better. But why invest in just one dividend ETF when you can have several? 😁

$TDIV $VHYL $WINC $ISPA $JEPQ

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Mr. K.@MrKobayashi

1Wk

@oxx Well... maybe the annual cost. Nevertheless... three of them weren't on my wish list yet. I have the $VHYL as an ACC. Now they're on the wish list. 🤝

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❤️DIST-LOVE@DISTLOVE

1Wk

@xxx jepq and winc are covered call ETFs; they are not comparable to pure dividend ETFs.

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Jupp D.@JuppDupp

1Wk

It's in my portfolio and is part of my savings plan

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JML@JohannaMichel-Leitner

1Wk

I think it's safer to go with the purely European FEUI.

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