Judging the Two Biggest Dividend ETFs

[@Nanalyze]

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[@Dividendsmattertoo]

Totally agree with the beginning intro if you are here watching this video and investing in these ETFs you are most likely ahead of 99% of the us population since only 1% of us citizens retire before 50.

[@Nanalyze]

Did not know that stat, thank you for sharing. Or, ideally, we can do something we love and then we won't ever need to retire. That's what wealth eventually lets us do.

[@justinjohnson8398]

this dividend series is on a roll!

[@Nanalyze]

Glad to hear you're enjoying it! Seems like they're a popular topic. ARK's bitcoin ETFs are slated for next week or so. There also one more scheduled on "the best dividend ETF" to close out this mini-series.

[@arigutman]

Great video, as a Vanguard guy I am a fan of VIG, but as a dividend guy of course I love the likes of SCHD.. Personally, however, I am running with VTI!

[@Nanalyze]

Glad you enjoyed the piece! VTI is a good way to get access to US equities of all sizes and types. It's just missing exposure to all other developed markets, though you can't beat the fee.

[@Nanalyze]

Interesting. The Vanguard Total World (VT) is 0.07% fees vs VTI at 0.03%. So you have to pay twice the fees just to get roughly 40% international exposure. It's incredible just how low Vanguard has been able to get their fee structures.

[@cherylkeys1284]

Thanks so much for the explanation of yield on cost. There are many naysayers about SCHD these days but I believe they do not appreciate the superior yield on cost that SCHD offers over time.

[@Nanalyze]

It seems to be doing good so far

[@eplugplay8409]

I have SCHD + DGRO + VIG in my Roth IRA. In 15-20 years it’ll be monstrous dividend machine.

[@Nanalyze]

Be sure to check overlaps between the three

[@eplugplay8409]

@@Nanalyze I understand that VIG and DGRO are 70% overlapping BUT I like VIG as it has more historical data than DGRO during down times.

[@danskisbees7348]

SCHD is one of my favorite holdings. I hadn't considered VIG until you pointed out their methodology. I'm really enjoying your videos, they're full of sound information, thanks Joe.

[@Nanalyze]

Glad to hear it! And we love to hear that an ETF is one of your favorite holdings. ETFs aren’t exactly sexy, but they sure do help people sleep better at night.

[@Dividendflywheel]

Great video SCHD & VIG are both very popular dividend ETFs. We must consider why (how) certain funds become popular. Sometimes an asset class (or fund) becomes popular based on past performance. However reversion to the mean inevitably occurs. And this “reversion” (underperformance) can last as long as a decade

[@Nanalyze]

Thank you very much for the feedback! We've seen a lot of banter about SCHD "underperformance," but you are correct. Looking at performance needs to take into account total return, and should be done so with very long time horizons. A couple of years means very little to investors who have time horizons measured in decades. And even then, past performance is no indicator of future performance, which is why it's probably best to understand how the ETF works, then decide if that exposure suits one's unique investing requirements. We look for growing income streams over time with a high likelihood of growth persisting and low turnover - generally speaking.

[@Dividendflywheel]

@@Nanalyze would appreciate your take on CGDV. They parent company has a long stellar performance. With an ETF they have eliminated the prior barrier (loaded fund structure) of earlier products offered to retail investors. Stay Hungry

[@Nanalyze]

@@Dividendflywheel The 33 basis points they charge is steep. Our latest piece in this series on NOBL discusses the problem with high expense ratios. We also have a piece going out today as the second to the last in this series :)

[@dannyboy8644]

Found your video at the right time . I just retired and own an IRA , and I am keeping until a RMD at 73 yrs of age . I want to dollar cost average into schd. Should I reinvest the dividends ? Thanks!

[@Nanalyze]

You need to arrive at those decisions yourself to become a better investor. ;)

[@fuzzie1956]

Excellent presentation. Thank you.

[@Nanalyze]

Thank you for the kind words!

[@Dividendflywheel]

Great video Dividend ETFs like NOBL VYM SCHD VIG DGRO CGDV all have a unique niche However I believe dividend ETF are not mutually exclusive from other asset classes such as Growth and Small Cap ETF. But ultimately a total stock market index will offer investors the most diversified investment. 2023 has been a challenging year for Dividend ETFs. Perhaps this is a reversion to the mean. This reversion could last as long as a decade. Remember the S&P 500 had a lost decade Keep up the educational content

[@Nanalyze]

Thank you for the info and words of support! Nothing should get investors more excited than quality assets that are having a challenging year. ;) To our comment on fees, Vanguard and Schwab have drawn the line in the sand for what's reasonable to pay. Anything more than that and whatever alpha you're capturing from the different strategies (as measured in decades, not years) will be heavily eroded.

[@SatyaSanathani]

Thanks for sharing this information.

[@Nanalyze]

You're very welcome!

[@brianfantana8510]

Interesting. Just yesterday I sold some schd in favor of vig.

[@Nanalyze]

What was the reasoning if you don't mind sharing? Would be useful to hear your perspective.

[@Sylvan_dB]

vanguard has a pattern of switching index providers. I suspect it is because of licensing costs. I'm tired of it, so I'm moving away from vanguard ETFs. E.g. instead of Vanguard large growth (VUG) my new money goes into Schwab large growth (SCHG).

[@Nanalyze]

You're probably right about the reasons for switching

[@districtavarice]

I really like REITs rn, what are your thoughts on their growth potential in the next 2 years

[@Nanalyze]

We think about things in terms of decades around here. She says REITs are going to outperform over the next twenty years. Coincidentally, that's when her contract ends. Here's a piece on REITs with another to follow soon: kzbin.info/www/bejne/nJevZXWlbq-Vp6M

[@Dividendflywheel]

Subscribed because of your analytical focus on evaluating these ETF. Will binge your channel this weekend Have you done an analysis on CGDV?

[@Nanalyze]

Our general thoughts on other dividend ETFs are something like this. If you're looking for an ETF to cover any particular type of exposure, the one with the lowest fees will be the one that serves you best over the long run. The ticker you mention charges 5X the fees of the ones we compared. Whatever alpha one hopes to gain from whatever strategy it is they're trying to pursue will - more likely than not - be eroded when one holds the asset for decades with is the time horizon we use. Thank you for the subscription! We mainly cover disruptive growth and dividend growth but will likely do some more ETF pieces as they're proving to be quite popular.

[@jeddesselle2611]

Interesting series. 👍

[@Nanalyze]

Really glad to hear! It was quite interesting to research as well.

[@Adam-ul2px]

Love SCHD! Love to see you cover DGRO ans QGRW

[@Nanalyze]

VYM and DGRO will be the wrap-up to this mini series. We're also taking a look at the SCHD performance issue as so many have asked about that. Afterwards, we might do a "if you could only buy one ETF" type of piece. Also in the queue coming soon is an ARK Bitcoin ETF piece. There are 1000s of ETFs out there so we'll need to be quite selective about what gets covered. Thank you for the feedback!

[@michaelprice83]

I appreciate your videos

[@Nanalyze]

Thank you! We appreciate your comment :)

[@ivanovisser4988]

Can you do an analysis about diversified energy company?

[@Nanalyze]

We take requests from paying subscribers on our Discord server. You'll be pleased to know they've also been asking for something similar ;)

[@presswbots2689]

Hi there! I’m 22 and have about 8k in a Roth IRA. Are ETF’s worth it for the long term value. Or, should I be more risky in my investments at a young age. Anyways great analysis and Subscribed!

[@Nanalyze]

Traditionally, younger investors should take more risks, yes, but when you look at some of the absolute shite out there masquerading as "investments," or all the tools out there who have no business at all talking about investing amassing large followings for no other reason than they're gaming algorithms, then you ought to proceed with extreme caution. Sounds like you're on the right path. Listen to people who want to help you become a better investor, not tell you what to do with your money. And yes, ETFs are absolutely worth it. Thank you for the sub.

[@Zacharyyyy89]

Hey team, Love your vids and youre clearly an expert in what you do. However some feedback from my personal experience. I find that these videos are filled with words but say nothing. Often just reading through material/data, without coming to any real conclusion. I undersrand these videos are probably mere 'appetisers' for your paid service, however my time is also valuable, and when i watch your videos id love to see more firm nanalyse opinions (based on your robust experience) rather than the watered down conclusions that are currently provided. Im happy to watch ads to do so if thats the case. Just my two cents. As i mentioned, i love your vids but believe they can be improved for both user experience and in return increased subscriber growth.

[@danskisbees7348]

You must be daydreaming while you're watching his videos.

[@Nanalyze]

Wyatt here, Head of Operations at Nanalyze. Thank you very much for the thoughtful criticism. We’re really working to grow Nanalyze and this type of comment is extremely valuable. So, I’ll start by saying that one of our beliefs is that we shouldn’t tell people what to do. Our goal is to educate people to make their own decisions because everyone’s investing journey is different. It sounds like you’re looking for “recommendations” of sorts? We try to steer clear of “recommending” anything, but we can certainly look to provide more of a tangible conclusion in our videos. As in “we prefer this ETF for these reasons.” Or something like that. As you said, we try to save something for our premium subs because, well, they pay the bills! But KZbin has been a great platform to grow our leads so we want to be conscious of that. Joe and I will talk this over as a part of our push to grow our channel. Stay tuned. Thank you! Please continue to provide thoughtful criticisms if you have them. -Wyatt C.

[@Zacharyyyy89]

@@Nanalyze Thanks for the reply Wyatt! I wouldn't say I'm looking for recommendations, just a clear message on where you stand. Personally, I utilize a few trusted sources (as well as my own opinion based on reading the data) and balance these out to formulate a plan/opinion on an investment thesis. I can clearly see you're experts in what you do and my comment shouldn't detract from my appreciation for them. I just wanted to point out that I follow your videos for your take on an investment e.g how you see it performing and whether your experience/framework gives a different paradigm to an investment product. As a summary, I think you do a great job of showing the data but dont always make your stance clear on whether something is a good buy (whether you're right or wrong can be up to viewer/father time). At the end of the day though, everyone is different and what I would like to see may differ from the majority of the audience. All the best :)

[@Zacharyyyy89]

Sorry I just wanted to point out that this feedback wasn't directed at this particular video (I actually thought the conclusion and process was really good). Apologies if that caused confusion.

[@danskisbees7348]

@@Zacharyyyy89 I'm sorry, I was being rude.

[@JacquesTreehorn]

Reality Income is creeping back from lows. High interest rates have hurt dividend paying REITs.

[@Nanalyze]

Realty Income is presently in our research queue because so many paying subscribers requested that we cover it. On a related topic: kzbin.info/www/bejne/nJevZXWlbq-Vp6M

[@echoeversky]

SVOL just to be weird?

[@Nanalyze]

We have enough weirdness to deal with in this company as it is ;)

[@edgibbs3229]

I like VIG better than SCHD.

[@Nanalyze]

Fair enough

[@bige6922]

subscribed. mic drop

[@Nanalyze]

That's great to hear, thank you for the support!