Best Dividend ETF that easily beats Index Funds

What happens to performance if you exclude companies that have never paid a dividend and overweight companies with solid balance sheets and a history of growing dividends?

The answer is greater overall returns and lower price volatility.

In this video I look at WisdomTree Global Quality Dividend Growth ETF compared to an index tracker. It is the best performing dividend ETF available in the UK.

What is wrong with a global tracker? I think there are 3 things:-
1) Excessive US exposure. 19 of the top 20 stocks are US based
2) Some flaky tech companies have risen near the top of the pile. They can be volatile in price as it is very difficult to value them. Tesla is one example.
3) Towards the buttom end of the index there are a lot of dinosaur companies in terminal decline, like Vodafone.

If we could screen out companies in 2) and 3) and in so doing reduce US exposure that could be a good thing and we could get a product that outperforms a global tracker in terms of price growth (no dinosaurs) and price volatility (no flaky tech). Doing so via an algorithm, a disciplined rules based process, could be less costly and less risky than having a human with an ego do it for us.

Enter WisdomTree Global Quality Dividend Growth. In this short video I look at its holdings, performance and company screening criteria. If you want to learn about how to select a top performing fund then this video is for you.

Dividend investing for passive income.

#dividendetf


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Guide to my channel

I use google sheets a lot. For all the free files I have shared, have a look at this playlist
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I'm keen on helping people to achieve financial independence. For videos on this topic go here
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Exchange Traded Funds are a great way to invest cheaply and effectively.
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Investment Trusts can offer exposure to exciting opportunities
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The best funds I have come across have a playlist here
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