Dividend ETFs

[spark]

Good morning,

I'm opening a post on the subject.
Do you think that some dividend-oriented ETFs could be interesting to accumulate over time? Vanguard ETFs in particular given their management fees? < to 0.25%.
Sincerely

[Jerome]

This is an interesting topic although I prefer to invest directly in stocks rather than ETFs.

I talk about it here , at point 5

[spark]

Hello Jerome,

I was thinking mainly about Vanguard index ETFs. There are one or two that track S&P indices, including one that tracks the S&P 500 dividend aristocrats. The other types of ETFs are more like mutual funds, where the manager chooses what he wants. These ETFs obviously expose you to a possible disaster if the manager overloads with companies that suddenly no longer pay a single dividend.

Sincerely

[Jerome]

I remain convinced that in the majority of cases it is better to invest in shares directly, but I find the subject interesting because I am always looking for solutions to diversify my sources of income.

I am currently working on a new strategy for European stocks which is in full development, and I am thinking why not also add a strategy based solely on ETFs, after some research I am providing a bulk list below, it will still be necessary to analyze exactly what they have in their belly

if you know some, let me know your comments, or if there are other interesting ones, do not hesitate

[Jerome]

after analysis here is a first short list
In particular, I eliminated certain ETFs that were too focused on the US, because this share is already well represented in my portfolio.

DWX
GNR
PCY
PID
PSAU
AMLP
DVYE
IDV
IPFF
IDVY.SW
IAPD.SW
IASP.SW
http://ch.ishares.com/fr/rc/produits/IUKD/detail-composition-fonds IUKD.SW

[spark]

Hello Jerome,

What are your selection criteria for these ETFs?
And how does Swiss taxation work on these products?

[spark]

For info there is a tool that seems correct to me here http://money.usnews.com/funds/etfs/equity

Sincerely

[Jerome]

I am thinking about these ETFs.
I am thinking of creating a new strategy dedicated to these in my portfolio, but for the moment nothing has been completed
as criteria I will keep some basic fundamentals such as yield, volatility, $risk, for the rest we will see
the taxation in my opinion is 15% non-recoverable and 15% anticipated (CH), if anyone has other information on this subject, I'm interested
Thanks for your link, it looks pretty good, here is my latest short list:

http://money.usnews.com/funds/etfs/income-funds/spdr-s%26p-international-dividend-etf/dwx DWX
http://money.usnews.com/funds/etfs/income-funds/wisdomtree-defa-equity-income-fund/dth DTH
http://money.usnews.com/funds/etfs/income-funds/wisdomtree-international-dividend-ex-financials-fund/doo DOO
http://money.usnews.com/funds/etfs/emerging-markets-funds/wisdomtree-emerging-markets-equity-income-fund/dem DEM
http://money.usnews.com/funds/etfs/income-funds/wisdomtree-middle-east-dividend-fund/gulf GULF
http://money.usnews.com/funds/etfs/income-funds/wisdomtree-international-largecap-dividend-fund/dol DOL
http://money.usnews.com/funds/etfs/international-funds/guggenheim-international-multi-asset-income-etf/hgi HGI
http://money.usnews.com/funds/etfs/natural-resources-funds/vanguard-energy-index-fund/vde VDE
http://money.usnews.com/funds/etfs/emerging-markets-debt-funds/powershares-emerging-markets-sovereign-debt-portfolio/pcy PCY
http://money.usnews.com/funds/etfs/emerging-markets-debt-funds/ishares-jpmorgan-usd-emerging-markets-bond-fund/emb EMB

[spark]

Hi Jerome

I'm looking at your short list

There is also this tool http://etf.stock-encyclopedia.com/category/high-dividend-etfs.html

you also have a screener on reuters here http://funds.us.reuters.com/US/screener/screener.asp?reset=1

Sincerely

[spark]

Good morning,

I think it is interesting to hedge with corporate bonds on diversified monetary zones.
For now it seems wiser to eliminate government bonds and financial obligations.

These two ETFs offer corporate ex-financial

iShares Barclays Capital Euro Corporate Bond ex-Financials (EEXF): http://uk.ishares.com/en/rc/products/EEXF
iShares Markit iBoxx £ Corporate Bond ex-Financials (ISXF): http://uk.ishares.com/en/rc/products/ISXF

To have diversification in the US zone,

Vanguard Short-Term Corporate Bond ETF (VCSH): https://personal.vanguard.com/us/funds/snapshot?FundId=3145&FundIntExt=INT#hist=tab%3A2
This ETF includes financials but it is a short term. Given the visibility of the sector currently I think it offers a good alternative. His portfolio seems well balanced.

Sincerely

[Jerome]

I updated my last short list using your links
This suddenly becomes a “long list”
My selection criteria are ETFs that offer dividends and protect against currency risk (weak dollar)
The securities that make it up must therefore be substantially different from my portfolio and include international or commodity-based stocks.

therefore corporate bonds cause me some worries precisely because of the currency risk, even if you mention ETFs in euros and the Swiss National Bank has set a floor rate

I will think in the coming days about a slightly more concise list and especially how to include an ETF strategy among my two other strategies.

Thanks for your interesting inputs

[spark]

Hello Jerome,

A pretty interesting concept in the long term – Harry Browne’s permanent portfolio in ETF (4 ETFs are enough). The portfolio has made +8 to 10% per year since 1972 with a very small loss in 2008 – 2009.

http://personalmba.com/permanent-portfolio/

[Jerome]

Hello

Yes I know this strategy. I am not a big gold addict, not enough to own 1/4 of my portfolio, same thing for bonds and cash. On the other hand it is true that these three assets allow to cover a portfolio well.

[Jerome]

In the end, I only retained 4 ETFs to follow in my new strategy http://www.dividendes.ch/ex-us-international-etfs-and-dividend-stocks/
-PCY
-EMB
-DEM
-DWX

[spark]

Hi Jerome

I will look at your ETFs, I was also looking for some ETFs based on dividends.
If it can help, there is here etf tester to do a back test. It's free, 5 etf max for a portfolio and setting of the % of each etf in the portfolio. They are not all there but we can ask to add them
http://www.etfreplay.com/backtest.aspx

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