Hello Community! I would like your opinion on which dividend ETF you think is the best and why. I would like to have an additional "dividend ETF" in my portfolio. It should have a good payout but not completely neglect growth. In other words, a good mix. In addition, it should perhaps also focus on long-term dividend growth.

For example, I find the $TDIV (+0,17%) despite its high payout of > 4%, it has had great growth since its launch in 2016 and performs better than other dividend ETFs, what do you think?

I also have a choice of classics such as $VHYL (+0,16%) or $FGEQ (+0,19%) but these have performed worse since 2016 and also pay out less. Or do you see advantages in these?

The last one that jumped out at me was $SCHD which also scores with a high payout and good performance.

I would be very interested in your opinion on this topic!

#dividende
#etf

I am 19 years old and started investing properly last August.

Before that I invested a little money in cryptocoins when I was 15 and haven't touched it since then. I am trying to expand the ETF position with a 500€ monthly savings plan with 70% $VWCE (+0,17%) and 30% $VHYL (+0,16%) . I am also a big fan of dividends and am therefore open to suggestions for dividend stocks. I would appreciate honest feedback about my portfolio thanks in advance.

Possibly a controversial topic ;)

In the last few days I've been writing more and more in the comments here that I don't think ETFs like Fidelity Global Quality Income are so great, at least for young people. So that I don't have to write the same thing over and over again, I'm going to write a post.

As many of the ETFs compared here have only been around for 5-7 years, I can unfortunately only make a comparison of performance over 5 years. That's quite short, I know. However, it is good in that we had two difficult years. Apart from the fact that, as a young person, I would only consciously choose a distributing ETF if I were planning my portfolio for retirement, for example, I have now also chosen the distributing variant of the standard ETFs here for better comparability.

My opinion is that anyone with a long investment horizon will get the best return and probably even the best payout if they choose a standard ETF.

The others are suitable as an add-on or main ETF as soon as you reach a certain age (and retirement is just around the corner) or you have a lot of capital and want to live off the dividends.

Now for an overview (source: Morningstar)

$HMWO (+0,17%) MSCI World dist

Performance 5 years: 13.11% p.a.

Last 12-month distribution: 1.41% p.a.

Simulation, investment today 100,000 euros, 30 years with the performance assumed above (note: this is too high and is not intended to suggest that you could achieve this safely. The performance over a longer observation period is worse p.a.)

Result: approx. 4,000,000 euros

Distribution, assuming that it (the div yield) remains constant: EUR 56,400

$VWRL (+0,16%)
FTSE All world dist

Performance 5 years: 11.63% p.a.

Last 12-month distribution: 1.28% p.a.

Simulation, investment today 100,000 euros, 30 years with performance assumed above

Result: approx. 2,700,000 euros

Distribution, assuming that it remains constant: 34,500 euros

Incidentally, this again shows my general problem with the AllWorld compared to the MSCI world... When does it ever perform better? How often have EM outperformed DM?

To colleagues with an investment horizon > 30 years => Do you really want to leave 1.3 million euros lying around?

$FGEQ (+0,19%)
Fidelity Global Quality

Performance 5 years: 11.07% p.a.

Last 12-month distribution: 2.2% p.a.

Simulation, investment today 100,000 euros, 30 years with the performance assumed above

Result: approx. 2,300,000 euros

Distribution, assuming that it remains constant: 50,600 euros

Insight: I have considerably more capital with the MSCI World and potentially a higher dividend.

But: It is true that the 5-year dividend growth is higher with Fidelity than with the MSCI World dist, and not insignificantly so. It is therefore more likely that Fidelity will be able to keep its dividend payout constant than the MSCI World. However, the difference in capital of over 1.5 million euros is very significant.

However, it should be noted that this ETF effectively takes the MSCI World, then filters according to quality aspects (there is also the $IS3Q (+0,17%) which also performs better) and then filters by distribution. The amount of the distribution is at most relevant for the weighting. Or how else can you explain the fact that NVIDIA, the dividend stock par excellence (irony), has a not-so-small position in the ETF? And please don't tell me about dividend growth: Yes, it's great for NVIDIA, but when will I receive a distribution that isn't 0.03%? In 80 years? What I'm trying to say is that the ETF doesn't really have a dividend approach. It has a nice payout ratio and nice dividend growth, but it doesn't generate this by buying stocks with a real dividend focus. You can find that good or bad.

$GGRP (+0,25%) WisdomTree Dividend Growth:

Performance 5 years: 7.34% p.a.

Last 12-month distribution: 1.57% p.a. (reduced)

Simulation, investment today 100,000 euros, 30 years with the performance assumed above

Result: approx. 830,000 euros

Distribution, assuming that it remains constant: 13,000 euros

Why do I still think it's a good addition: it brings a few defensive companies into the portfolio or gives them a higher weighting. Depending on market expectations, this can therefore be a good addition.

In contrast to Fidelity, it also has a significantly different approach to the MSCI World, for example.

$VHYL (+0,16%)
FTSE All world High Div Yield

Performance 5 years: 7.62% p.a.

Last 12-month distribution: 2.97% p.a.

Simulation, investment today 100,000 euros, 30 years with performance assumed above

Result: approx. 900,000 euros

Distribution, assuming that it remains constant: 26,730 euros

$TDIV (+0,17%) VanEck Morningstar HighDiv

Performance 5 years: 11.07% p.a.

Last 12-month distribution: 3.98% p.a.

Simulation, investment today 100,000 euros, 30 years with the performance assumed above

Result: approx. 2,300,000 euros

Distribution, assuming that it remains constant: 91,540 euros

Now that's a dividend ETF to be proud of. It performed comparatively well in 2022 in particular, unlike the others. This is precisely what makes it interesting as an add-on.

It has a focus on finance.

It is by no means a stand-alone ETF, but in my view it is a great alternative as an addition to generate dividends.

(5Y DivGrowth 7.5%, lies between MSCI World and Fidelity)

____________________________________

Conclusion: In terms of the capital generated, the MSCI World is without doubt the best choice. With regard to the distribution, it is not possible to make such a general statement. In any case, there is no conceivable scenario in which I would choose Fidelity over the MSCI World for a long-term investment horizon and capital accumulation - not management. I simply leave so much capital lying around...

My recommendation for beginners is therefore:

MSCI World, about 70-80%, distributing or accumulating depending on your goal

A small engine (more on this in a moment), approx. 20-30%

For more experienced investors with a dividend target:

MSCI World, dist, approx. 50-60%

VanEck, approx. 15-20%

Motor, approx. 20-30%

I would go for Fidelity if I either have capital and can live off dividends, or if I'm approaching retirement and want to supplement it:

Fidelity instead of MSCI world: 80%

VanEck: 20 %

(Motor, only in the first case: capital to live off distributions and at the same time still aiming for further wealth accumulation)

About the engines:

Of course, the Nasdaq comes to mind and I would go for it in principle. I would also prefer it to the MSCI World IT because, contrary to popular belief, the Nasdaq is not limited to technology. It currently also includes a number of companies from the consumer discretionary and consumer staples sectors, for example. Nevertheless, its performance is of course extremely convincing. I wouldn't care about overlaps with the MSCI world, as they probably wouldn't lead to any company suddenly having a 10% portfolio share or anything like that.

And then I recently dug up something else: $LAB2 (+0,19%)

Unfortunately, it hasn't been around that long, but the index has been around for 7 years and in these 7 years the index has had a performance of 14.78% p.a., unfortunately no statement for 5 years (Nasdaq in 5 years: 21.62%). So it turns out that it can't keep up with the Nasdaq, but it is not quite so technology-focused and not limited to the USA. I bought it myself because it offers an excess return over the MSCI World and at the same time includes companies that were not previously in my portfolio and shifts my weighting.

The fund invests in strong brand values.

However, because it does not generate such a strong excess return as the Nasdaq, it is not really an engine in the classic sense, but perhaps suitable for a more conservative approach.

PS: The S&P 500 is not included in the overall comparison because all the others have a global approach. That would be somewhat unfair. Of course, its performance is significantly better.

-No investment advice

Disclaimer: No investment advice or recommendation, this article is for information purposes only. Before you decide on an ETF, take a closer look at it in terms of positions

take a closer look at positions, sampling, regions, etc. I can't describe all of this

I can't describe everything, as it would go beyond the scope of this article

Part 1 (definition, categories & Z-score and quality factor): https://getqu.in/RCSY4a/

Part 2 (Value ETF): https://getqu.in/Nfnhqb/

Part 3 (Low Volatility ETF): https://getqu.in/Ub7KpG/

Part 4 (Momentum ETF): https://getqu.in/CNMgGw/

Part 5 (Small and Growth ETF): https://getqu.in/0NoqmW/

What are dividend ETFs?

Abbreviated what dividends are, since everyone here probably knows this: distributions by a company to its shareholders, the amount is usually voted on at the annual general meeting and is usually paid out of profits, but does not have to be (if it is paid out of the substance, this is often counted as a bad indicator).

Dividend ETFs are therefore primarily ETFs that distribute the dividends paid by companies to the ETF holders; they are also referred to as distributing ETFs (Dist.). In contrast, an accumulating (Acc.) ETF uses the dividends to buy more shares, i.e. it reinvests.

Because the dividend ETF distributes money, I get cash flows back from my investments, usually on a quarterly basis. These ETFs are celebrated - especially on social media - as a form of passive income and have their advantages but also disadvantages, which we will examine in more detail below.

Dividends as a value premium (CAPM /French Fama model)

Short recap (in more detail in part 5): French Fama's 3 factor model raises beta (volatility), size- and value-premium as factors to determine the expected return of an investment. Dividends are not explicitly mentioned as a factor, but they are indirectly included in the value and beta factors, as a company must first be able to afford to pay dividends.

must first afford to pay dividends. Growth and small-cap companies

often do not yet pay dividends, as the revenue generated is used for more growth

growth or the balance sheets are not yet as sustainable. Dividend payers often have a stronger balance sheet, which makes them less volatile to changes in interest rates, for example (although this reduces the expected return according to the CAPM). Exceptions are high dividend payers, which are often riskier and reward investors with a high dividend for holding the share.

The fact that dividends also count as a quality factor can be clearly seen in the dividend aristocrats. These are companies that have been paying dividends continuously for 25 years and increase them annually. This makes them particularly attractive, which is why they can also be invested in via individual products such as the $SPYD (+0,19%) are investable.

Dividends are also included as a valuation factor in the Quality ETF as a positive valuation criterion (see also Index Methodology Part 1)

Historically, several studies for the US market show an outperformance of dividend stocks, especially even high dividend payers:

https://www.hartfordfunds.com/insights/market-perspectives/strategic-beta-etfs/what-drives-dividend-stock-performance.html

https://www.globalxetfs.com/content/files/High-Dividend-Stocks-In-Rising-Interest-Rate-Environments.pdf

In the recent past, however

However, high-dividend stocks have underperformed in the recent past, with the ACWI High

Dividend has significantly underperformed the MSCI ACWI over the last 10 years (- 100 %).

Classes of dividend ETF?

In my view, dividend ETFs can be roughly divided into 3 categories:

- Dividend as a windfall: The focus of the ETF is not on dividends, but some companies are included in the index that pay dividends and these are then distributed to the holder. A classic example is the dividend-paying $VWRL.

- Quality dividend: The focus is on achieving dividends, but these are accompanied by quality factors such as dividend aristocrats or quality dividend ETFs

- High Dividend: The highest dividend yields are targeted here, whereby quality factors may play less of a role.

Why high dividend yields can be a problem

Unfortunately, I have often overheard conversations that sound like: "VW is so cheap, you get a 10% dividend yield, you can't go wrong". But that brings us to the problem of high dividend yields, because these are often a signal of structural weakness in the company and/or a sharp fall in the share price. If the dividend yield remains at this level, this could seriously jeopardize the company's long-term financial strength. If the dividend yield remains

and is even reduced, the original investment case is invalidated.

So even if the unsystemic individual risk in ETFs often "diversifies away", it is important to take another look at the largest positions and check whether this is not a structurally weakening company.

Advantages of dividends

In addition to the potential value premium mentioned above, dividends fulfill a different purpose at an individual level, depending on the stage of life: for most people reading this, this purpose is likely to be psychological, as they are not dependent on the cash flow from dividends.

cash flow from dividends. The dividends are then a nice motivational effect and

offer the "peace of mind" of a steady income even in the event of market setbacks

and therefore less worry about declining book profits.

Once you have reached an advanced age, the dividend offers a high comfort factor. This means that there is often no need for rebalancing or a withdrawal plan, as would be the case with accumulating ETFs. The dividends are then used as additional income for retirement; of course, withdrawals can also be made, but not to the same extent as would be necessary with accumulating ETFs.

would be necessary.

Disadvantages of dividends

Taxes! Because payments are distributed to the holder, capital gains tax, solidarity surcharge (26.375% in total) and, if applicable, church tax are also due. This tax is first deducted before I can reinvest the dividends, and reinvesting the dividends costs extra (even with neobrokers via the spread between the ask and bid price). Dividends therefore have a detrimental effect on the compound interest effect of the ETF's profits.

Although accumulating ETFs have been brought somewhat into line with dividend ETFs in terms of taxation with the advance lump sum taxation, they still offer the advantage that the tax burden is always lower than for dividend payers (if the dividend ETF has distributed less than the advance lump sum, an advance lump sum is also charged).

Another negative aspect that goes hand in hand with the above is market timing. Often not every small dividend is reinvested directly, but accumulated until, for example, EUR 1,000 is reached in the clearing account. If the market has then run away, you wait for a setback and may miss the entry or at least lose the lost performance where the money was sitting in the settlement account without earning interest.

account without interest. There is also more work involved in the savings phase due to the necessary reinvestments.

Tax comparison high-dividend vs accumulating (example 2024)

Assumption that the tax-free amount has already been exhausted

Investment amount: 100,000

ETF1: Vanguard FTSE ACWI High Dividend ($VHYL (+0,16%))

ETF2: iShares MSCI ACWI ETF ($ISAC (+0,16%) )

Tax Burden High Dividend:

Price at the beginning of the year: EUR 57

Shares: 100,000 / 57 = 1,754.39

Dividend per share: EUR 1.94

Absolute dividends: EUR 3,403.51

Partial exemption ratio: 30%

Tax (26.375 %) = EUR 628.38

Tax burden accumulating ACWI

Fund value at the beginning of the year: EUR 100,000

Prime rate 2023 (for 2024): 2.55%

Base yield (70%): EUR 1,785

Partial exemption rate: 30%

Up-front lump sum: EUR 1,249.50

Tax (26.375%) = EUR 329.56

There is a tax disadvantage of around EUR 300, which is thus withdrawn from compound interest.

For whom are dividend ETFs worthwhile?

In summary, the disadvantages of strongly dividend-oriented investing outweigh the advantages for me. Of course, there are many shades of gray between focusing on high dividends and reinvesting. Dividends as an addition - especially as they often come with a premium - make perfect sense, but the explicit focus on high dividends can be dangerous and has tax disadvantages.

Dividend ETFs are therefore primarily for investors who want to generate income regardless of the current market phase and appreciate the stability of the cash flow. If the dividends also ensure that you can sleep better at night when the market fluctuates and are not tempted to panic sell, then the small tax disadvantage is no reason not to invest.

the small tax disadvantage is no reason not to invest in dividends. Also

It also has its charm to have a less intensive withdrawal phase in old age.

withdrawal phase. So if you are emotionally affected by market fluctuations, appreciate regular income and are convinced of the dividend premium (as part of the value premium), then dividend ETFs are just right for you.

👉Dividends-ETFs:

Performance comparisons incl. dividends

$VHYL (+0,16%) (World | TER 0, % | Tracking Difference -0.04 % | DivRendite 3 %| EUR 5 bn invested volume | 3Y underperformance vs. MSCI World - 5 %pt | 5Y underperformance vs. ACWI - 30 %pt | 10Y underperformance vs. ACWI -100%pt)

• Index methodology: Based on the FTSE All-World Index, which includes large and mid-cap companies from developed and emerging markets worldwide. REITs are excluded. Companies are sorted according to the expected 12-month dividend yield and the stocks with the highest dividend yield are selected. The aim is to achieve around 50% of the market capitalization of the original index and then to weight these companies according to their size in the index.

$TDIV (+0,17%) (World | TER 0.38 % | TD 0.47 % | Div yield 4.3 % | EUR 1.2 bn invested | 3Y outperformance vs. ACWI + 18 %pt | 5Y underperformance vs. ACWI - 7 %pt | 8Y underperformance vs. ACWI - 38%pt)

• Index methodology: Screening for consistent dividend payers with ESG relevance. Weighting by dividend max. 5% per share and max. 40% per sector. Selection of 100 stocks with the highest dividend yield. Semi-annual rebalancing

$SPYD (+0,19%) (US | TER 0.35 % | TD -0.07 % | Dividend yield 1.5 % | 3.5 bn invested | 3Y underperformance vs. S&P 500 -23 %pt | 5Y underperformance vs. S&P 500 - 63 %pt. | 10Y underperformance vs. S&P 500 - 283%pt.)

• Index methodology: Includes components of the S&P Composite 1500, then selects for companies with the highest dividend yield whose dividends have been increased for the last 20 consecutive years. Furthermore, minimum requirements for market capitalization and liquidity of the share must be met. Maximum weighting per share 4%.

$SPYW (+0,02%) (Europe | TER 0.30 % | TD -0.35 % | DivRendite 3.7 % | 3Y underperformance vs.

Eurostoxx 600 - 1 %pt. | 5Y underperformance vs. Eurostoxx 600 - 24 %pt | 10Y underperformance vs. Eurostoxx 600 - 28 %pt.)

• Index methodology: Based on the S&P Europe Broad Market Index, companies must have increased or maintained stable dividends for 10 consecutive years, selection of the 40 companies with the highest dividend yield and weighting accordingly. Max. 5 % per share, 30 % per country/sector.

Conclusion - what remains: A balanced strategy with dividends as an admixture can make sense, whereby the focus should be on quality dividends rather than high payouts.

#smartbeta
#etf
#dividende

Good evening,

I have just come across the ETF $IEFM (+0,03%) (actually $CEMR, but unfortunately it is not shown here) (Edge Europe Momentum EUR (Acc)) and it seems very interesting to me as it covers the European market. Over the long term, the ETF has had nice growth and the individual companies such as $SAP (+0%) , $ASML (-0,14%) , $NOV (+0,42%) but also $RACE (+0,46%) I like very much. In $SAP (+0%) I am also already invested. However, I am currently also investing in other ETFs such as the $VWCE (+0,17%) the $IGLN (-0,06%) , the $DFEN (+0,29%) , the $VHYL (+0,16%) (actually $VGWD but it is not shown here either) and the $QDV5 (-0,61%) . Would it be worthwhile to include the $IEFM (+0,03%) in my savings plan and thus increase the European share in my portfolio? What do you think of the ETF?

Evening,

I have various distributing ETFs. What is your opinion?

Vanguard FTSE All-World High Dividend Yield WKN;$VHYL (+0,16%)), VanEck Morningstar Developed Markets Dividend Leaders (WKN: $TDIV (+0,17%) ) and Xtrackers Stoxx Global Select Dividend 100 (WKN: $XGSD (+0%) )

Hello dear getquin friends

I would like to expand my portfolio.

Currently my portfolio consists only of the $ISAC (+0,16%) and $BTC (-1,7%) (and a little $ETH (-2,11%) ) ... approx. 70/30.

I would like to add a distributing ETF. Yes, I would also like some dividends. I'm not currently dependent on dividends, but earning a small (or large) amount from dividends in 12 years or more is definitely interesting. So the goal is rather sustainable dividend growth with new ETFs.

If the USA share is no longer like 40%, this would not bother me either, as the share is already at the $ISAC (+0,16%) is already high.

I have the following ETFs in mind: $TDIV (+0,17%) / $VHYL (+0,16%) / $TSWE (+0,17%) / $FGEQ (+0,19%)

Whereby the USA share is again very high in the last one.

What do you think? Do you know any other good ETFs?

Hello dear community!

I have been investing since April and have 6 positions in my portfolio, of which 3 are ETFs and 3 are individual stocks.

I want to boost performance with the individual stocks and the ETFs serve as a long-term / safe part of my portfolio.

My ETFs run as a monthly savings plan

$IWDA (+0,17%)
$CSPX (+0,19%)

and recently also $VHYL (+0,16%)

To my question:

$VHYL (+0,16%) I have recently added a dividend ETF to my savings plan in order to have a long-term dividend payout in my portfolio.

In the meantime, however, I have often been told by others something like "You don't focus on foreign exchange but put a dividend ETF in your portfolio. That's a real drag on returns and makes no sense".

I don't see a problem myself 🤷🏽‍♂️

What do you think?

I haven't been investing for long and would be happy to hear other opinions.

Hello Community,

I have just received a change notice from Trade Republic regarding my position $VHYL (+0,16%) received a change notification.

Has anyone else received something like this and if so, can someone briefly explain to me what change will take place on 02.01.2025? I can't quite make sense of the letter.