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Does TDIV make sense as a young person?

What do you think, does it make sense $TDIV (-0.7%) as a 25 year old in addition to the $VWCE (-0.53%) to save a small part of it when it comes to long-term wealth accumulation? Or is it more of an ETF that you can switch into at an older age for cash flow?

7 Comments

Suky@Suky

Yes, it makes a difference - especially if you don't currently need cash flow. Then you could simply reinvest the dividends from the TDIV automatically in VWCE.

If you do the math:
With a €100 TDIV share, you get around €3-4 in dividends per year.
If you immediately put these dividends into VWCE, it acts like a small compound interest booster on your growth ETF.

In the end, you have
the regular distributions from TDIV
and the broad, growth-oriented performance of VWCE
In the long term, it can even yield more than just 100% VWCE if you reinvest in a disciplined manner.

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Maximilian@Max095

@Suky I do it exactly the same way, except that I shift the dividends from $TDIV and $FGEQ into $CSNDX and into my individual shares.

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risk_taker_1816@risk_taker_1816

You can do it, it's not bad, but at a young age the $VWRL would even be good, it's the same as the VwCE but pays out 4 times a year

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Alpalaka@Alpalaka

@risk_taker_1816 Why is a distributor better for building up assets at a young age?

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risk_taker_1816@risk_taker_1816

@Alpalaka He asked me if TDIV is a good secondary saver, and it is a dividend ETF, so I recommended another dividend ETF that performs almost exactly like the VWCE. Please always keep the question in mind.

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Stefan@Da_Fischi

Yes, it makes a lot of sense, especially because of the diversification. Take a look at the country distribution of the two ETFs, for example.

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Maximilian@Max095

If you reinvest the dividend and don't consume it, definitely! The performance is also impressive and you reduce your US share. That's exactly how I do it.

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