Phil · 2024-11-11T10:25:23.814390Z

Hallo zusammen, meine monatliche Sparrate fließt aktuell zu gleichen Teilen in die beiden folgenden ETF: $XDWD $TDIV Was haltet ihr von dem ETF-Split? Würdet ihr einen weiteren mit aufnehmen (z. B. Auf den S&P500, oder Indien, etc. ) und die Sparrate aufteilen oder alles so weiterlaufen lassen? Bitte mit Begründung;)

@Pherror

2Mon·

Hello everyone, my monthly savings installment currently flows equally into the following two ETFs:

$XDWD (+0.27%)

$TDIV (-0.55%)

What do you think of the ETF split? Would you include another one (e.g. on the S&P500, or India, etc.) and split the savings installment or leave everything as it is? Please give reasons;)

19 Comments

Kai@Dividenden-Sammler

2Mon

S&P500 doesn't really make much sense as you already have an MSCI World (would have too much duplication otherwise). What would make sense would be an EM ETF like your India ETF or a more broadly diversified EM. Or further diversification in equities would also be possible in the direction of small caps. In principle, however, the MSCI would also suffice if you want to do without EM.

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Chris@Psychedelic_Sunflower

2Mon

Dividend ETFs tend to underperform. I would take it out.

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Udo@Cash-Flow-Cow

2Mon

@Psychedelic_Sunflowernonsense. Compare these ETFs with a focus on dividends with an MSCI World.
- WisdomTree Global Quality Dividend Growth UCITS ETF (WKN A2AG1D),
- Fidelity US Quality Income ETF (WKN A2DL7C) and
- VanEck Morningstar Developed Markets Dividend Leaders (WKN: A2JAHJ)
The Fidelity in particular is performing better and all three have very good sustainable cash flow and dividend growth.

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Chris@Psychedelic_Sunflower

2Mon

@Cash-Flow-Cow What time period are we talking about?

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Udo@Cash-Flow-Cow

2Mon

@Psychedelic_Sunflowerat extraETF.com I had selected 10 years in comparison. You can also have a look yourself.

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Kai@Dividenden-Sammler

2Mon

@Cash-Flow-Cow the Fidelity Global Quality Income $FGEQ by any chance? Would at least be more comparable to the other two than its US counterpart

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Udo@Cash-Flow-Cow

2Mon

@Dividenden-Sammlerno, the US version, because: It is already very diversified. All the companies in it make their sales worldwide. I go by where they make their sales and not where their headquarters are ;-)
The US version is also doing better: https://extraetf.com/de/etf-comparison?products=IE00BYXVGZ48-etf,IE00BYXVGX24-etf

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Kristian D.@trade_whisperer_241

2Mon

I would be heavier in the US, so I’d take out the all world and put in an S&P 500 ETF instead and then keep the TDIV as a diversification to other countries & sectors. S&P500 and All World together doesn’t make much sense to me as the largest holdings in both ETFs are the same, so I don’t think it gives the diversification I wish for.

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Udo@Cash-Flow-Cow

2Mon

Doesn't answer your question, but maybe some inspiration?

Strategies are as individual as life itself. There is no right or wrong, only different.
My goal: In my early 50s (i.e. in around 10 years' time), I want to be able to say that I only go to work because I want to, not because I have to.
My strategy: Passive cash flow through dividends.
For those who don't feel like analyzing and evaluating individual companies, these are my favorite ETFs when it comes to regular passive cash flow (dividend strategy):
- WisdomTree Global Quality Dividend Growth UCITS ETF (WKN A2AG1D),
- Fidelity US Quality Income ETF (WKN A2DL7C) and
- VanEck Morningstar Developed Markets Dividend Leaders (WKN: A2JAHJ)

Even if it is now comparing apples with pears, but with them you not only have a monthly income, no, because if you reinvest the distributions first - in my case by adjusting the savings plans promptly - you have a similar or in some cases better performance than with the accumulating bread-and-butter ETF iShares Core MSCI World UCITS ETF.
The dividend growth of the Fidelity US Quality Income is even in the 2-digit range and for the other two it is still over 8%. These are very good regular "pay rises".
I also started accumulating around 2016, but at some point I found watching pure book profits boring and the thought of having to sell shares later on to get cash again wasn't exactly motivating. Then it's no longer passive, you have to actively do something. And you don't know what state of health you'll be in later to do anything or have anything done.
I don't want to have to reallocate large volumes later on, which can also cost a lot, and I don't want to use up as much substance as possible.
In addition, accumulators are now also taxed earlier, so there is no longer much difference when it comes to utilizing the tax-free amount or the compound interest effect.

And if the state were to waive capital gains tax for buy&holders, there wouldn't even need to be a subsidy, as with Riester or Rürup.

Frugalism + stock market = 📈🤑😊 Buy&hold&getDividend&relax 💶💰

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Phil@Pherror

2Mon

@Cash-Flow-Cow Thank you for the detailed explanation. I also considered using a similar allocation some time ago, but decided against it - for the time being. I'm 33 years old and working towards a passive income at 50 and didn't want to "reallocate" until I was around 45. I am currently following a 70% return focus 30% dividend focus strategy. I have also looked at the "WisdomTree Global Quality Dividend Growth". Can you recommend it? Why did you choose it?

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Udo@Cash-Flow-Cow

2Mon

@PherrorAs the name suggests, the WisdomTree contains companies that have been able to sustainably increase their dividends and will continue to do so. Of course, the dividend yield is not high at first, but if you want to live off dividends later on, you should focus on growth first.

Two videos on this:
https://youtu.be/yDBt9B7auYk?si=up_T4NMLLEI-QRDE

https://youtu.be/oLQ2Zn4iBA4?si=UmOvdqT1841b98US

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Phil@Pherror

2Mon

@Cash-Flow-Cow The ETF is actually quite good, and I have already toyed with the idea of replacing the $XDWD, but then decided against it because of the costs.

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Udo@Cash-Flow-Cow

2Mon

@Pherror Yes, the costs could be a little lower. But the fact that it still performs better than other ETFs despite the costs is not bad in my opinion. The Vanguard FTSE All-World High Dividend Yield UCITS ETF (Dist), for example, is a poor ETF if you focus on dividends.

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Phil@Pherror

2Mon

@Cash-Flow-Cow Also true again. I've been toying with the idea of switching to the distributing version of $XDWD for some time now, but I'm not yet convinced whether it's worth it due to the lack of div growth focus.

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tono@Tono

2Mon

@Cash-Flow-Cow What exactly makes it so bad from your point of view?

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Udo@Cash-Flow-Cow

2Mon

@Tonotoo much diversification slows down performance. There are better and more efficient ways.
Compare with the
- WisdomTree Global Quality Dividend Growth UCITS ETF (WKN A2AG1D),
- Fidelity US Quality Income ETF (WKN A2DL7C) and
- VanEck Morningstar Developed Markets Dividend Leaders (WKN: A2JAHJ)
at extraETF.

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tono@Tono

2Mon

@Cash-Flow-Cow I agree with you, although the Wisdomtree and Fidelity are also heavily tech weighted and that's where most of the performance comes from. The Vanguard high div could possibly be included to keep tech somewhat lower.

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Udo@Cash-Flow-Cow

2Mon

@Tonoyou could. But look at the dividend growth independently of the share price performance. The dividend yield is slightly lower for the ones I mentioned, but 12% growth for Fidelity and still over 8% for the other two. In the end, there is no right or wrong anyway, just different and everyone has to feel comfortable with their steak.

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tono@Tono

2Mon

@Cash-Flow-Cow I agree with you 👍
For example, I'm 100% in the VWRL and completely satisfied with it

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