Isn't a certain "security" also interesting for beginners? So shouldn't such a dividend ETF be included in principle - even if initially with a low weighting and then higher with increasing age and assets? 🤔
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@PIXELINVESTOR if you hold the $FGEQ in your portfolio for decades, you get an enormously high personal dividend yield through dividend growth. So I think it is also very suitable for younger people with a long-term investment horizon. Just my opinion and approach
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@Max095 I see it the same way and deliberately rely on the combination of market capitalization-weighted all-world ETF $VWRL and quality dividend ETF $FGEQ. My observation: sometimes the dividend increases in one ETF, sometimes the other creates better growth and dividend growth. ergo: I include both in the portfolio and do so for the long term. That will work out 👍
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@Yield-Ahead Good strategy! 😊I have already considered holding only the $FGEQ as a core in my portfolio
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@Max095 so if I were to pick any smart beta ETF as a core, it would undoubtedly be $FGEQ. Why? Because the Fidelity index implements sector and country neutrality to the global equity benchmark and I have fewer structural deviations from the overall market here than with $TDIV, for example. That would be very important to me in the long term. I also think the quality factor makes a lot of sense in connection with a dividend focus. I only have to look at the ETF's top 25 holdings, which is already a convincing selection. The dividend consistency is also controlled via the index (5y div. not negative).
I find the overall concept very coherent for income investors, although a slightly lower TER would be great. Perhaps something will happen in the next few years. I could imagine Fidelity considering a reduction at some point.
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@Yield-Ahead I agree, and you don't always have to try to "perfect" everything. You have to feel comfortable with your investment.
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@Max095 That's it, stay tuned and ignore the background noise. That's it.
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