There was once an article here that compared the FTSE all World (distributing) exactly with it. But unfortunately I've lost it. Maybe someone will find it 👀
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•@lawinvest Addendum: the reinvestment of distributions makes it a bit complicated
Assuming: MsCi World makes 8.95% (source black Rock 20-year average) and I take one with a 1.5-2% payout (to achieve dividend-like returns later)
Or
The highyield dividend
It makes about 3%
But pays out 5.5.
If I don't reinvest, it shows at first glance and very quickly that the MSCI World completely outperforms it.
However, if I reinvest, I have an accumulating effect, which means that the dividend ETF also has a de facto annual WE of 8.5% and therefore a competitive return. But: in the long term, there is of course a shift, because the msci World works with the money from the outset and the longer the money sits, the less effect the dividend reinvestment has at the end of the investment period.
Incidentally, I have combined both. Strong core of s&P and MSCI World (approx. 50% of the ETF portion of my portfolio) and approx. 12% of the $TDIV
Assuming: MsCi World makes 8.95% (source black Rock 20-year average) and I take one with a 1.5-2% payout (to achieve dividend-like returns later)
Or
The highyield dividend
It makes about 3%
But pays out 5.5.
If I don't reinvest, it shows at first glance and very quickly that the MSCI World completely outperforms it.
However, if I reinvest, I have an accumulating effect, which means that the dividend ETF also has a de facto annual WE of 8.5% and therefore a competitive return. But: in the long term, there is of course a shift, because the msci World works with the money from the outset and the longer the money sits, the less effect the dividend reinvestment has at the end of the investment period.
Incidentally, I have combined both. Strong core of s&P and MSCI World (approx. 50% of the ETF portion of my portfolio) and approx. 12% of the $TDIV
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