13H·

Global Quality Dividend Growth

I had included this ETF $GGRP (+0.38%) in my portfolio at the time because the overall performance was supposed to be very good. In the meantime, and mainly because of the dividend cut some time ago, it is lagging behind quite a bit in my portfolio. Is this due to the market situation and there will be times again when it performs better than, for example, the $VWCE (+0.29%) or is the ETF simply no longer as attractive?

I still have the $FGEQ (-0.24%) which performs significantly better. I'm thinking about $GGRP (+0.38%) out and reallocate.

7 Comments

Golden Boy@randomdude

13H

I continue to bet on both. The poor performance and the falling distribution are mainly due to the weak dollar.
The ETF concept is still good. There's no point in constantly changing horses. Sometimes $GGRP is a little ahead, sometimes $FGEQ.

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TotallyLost@TotallyLost

12H

@randomdude If it were due to the weak dollar, $GGRP would have performed better than $FGEQ, because $GGRP has less USA.

ne I think the answer to why the $GGRP didn't do as well as the $FGEQ is MUCH easier to explain.

The largest position in $FGEQ is $NVDA...
And now guess which company is not included in $GGRP? 😅

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Golden Boy@randomdude

10H

@TotallyLost You're probably right. This makes it all the clearer that the short and medium-term performance of such ETFs is dependent on coincidences that say nothing about the quality of the concepts.

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TotallyLost@TotallyLost

10H

@randomdude by the way, have a look at the Invesco Global Buyback Achievers UCITS ETF $BUYB.
It's a very similar principle, but instead of taking companies that increase their dividends, you take companies that buy back their own shares.
I find this really exciting, especially in combination with a quality dividend ETF. 😘

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TotallyLost@TotallyLost

13H

They run almost the same, one sometimes better, the other sometimes worse...
https://extraetf.com/de/etf-comparison?products=IE00BYXVGZ48-etf,IE00BZ56RN96-etf,IE00BP3QZ601-etf

In the end, these are both quality factor ETFs that track the factor in different ways.
If the factor does not perform, neither do the ETFs on it.

But I can guarantee you one thing: if you sell parts of your portfolio because they have performed poorly temporarily, this is a guarantee of underperformance.
You should actually be buying more of them now.

Google it:
"rebalancing" and "mean reversion" 😘

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Variuzoo@Variuzoo

11H

@TotallyLost thank you, I'll have a look at 🫶🏼

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Hulkhagen@Hulkhagen

I suspect that the cuts are mainly related to the inclusion of Meta and Google. They hardly pay any dividends (yet), but should increase substantially in the long term.

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