6361
SPP 393.00 cents - LDT: 27 Nov 2015
Show Posts
This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.
6372
Here's the reason GCR, Mr Price is making work for me: http://www.mrpricegroup.com/Investor-Relations/Sens-news/Change-to-the-Mr-Price-Group-ticker-code-and-ISIN.aspx
6374
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: November 12, 2015, 09:47:57 am »
It's my core ETF JohhnyH. At the moment I'm about 40% DIVTRX, 30% STXIND and 30% FOORD equity. Once my 3 year holding period for FOORD expires early next year, unless I can somehow buy something international without paying massive fees, that 30% will also go into DIVTRX.
My thinking is this:
I need an ETF that is well diversified, with reasonable costs as my core. The STXIND is out, with it holding 19%+ in both SAB and NPN. And if SAB leaves, then the NPN holding will rise to close on 23%. I'm not comfortable with that. The STX40 is out for similar reasons, as is the DIVIND. I won't hold the DBX trackers, I just can't pay those fees, plus have you seen the spreads on offer. I also looked at the RMB midcap, which had relatively good performance for some time, but it also had fee and spread issues for me.
The DIVTRX on the other hand is well diversified, At worst you end up with 5% per share, currently it's under 3% per share, across a number of sectors. The costs are relatively low at 0.39%, and the spread is also reasonably small now, around 8c.
Then of course we all want decent performance. DIVTRX has done relatively well in the past, but with a "smart beta" etf, you're looking more at the methodology. DIVTRX is based on the S&P dividends aristocrats index. In SA this means all companies that have held or increased dividends in 5 years. This is turn is based on the S&P 500 dividends aristocrats model (though they need 25 years), which was modeled on the successful strategy employed by a number of successful dividend investors.
So is it a good strategy? History seems to think so. Here's a chart of the S&P dividend aristocrats 500 compared to the S&P 500:
As you can see, since 1990 it's either tracked the 500, or beaten the 500, apart for some anomoly in the early 2000's. And it most likely paid higher dividends in the process. As always past performance may not be future performance, but for me, I'm quite comfortable with the strategy. If a company does badly and cuts their dividend, they'll be out in no more than 6 months. I like this as it's a potentially fast filter, and I don't have to pay capital gains for dumping the bad share. So for now, I'll keep sticking my money into it, and keep hoping for decent growth while paying above average dividends.
I may change this in future if a better product comes around, but so far there's nothing I'd rather invest in. If anyone has a pointer as to what to look at I'd love to hear it.
My thinking is this:
I need an ETF that is well diversified, with reasonable costs as my core. The STXIND is out, with it holding 19%+ in both SAB and NPN. And if SAB leaves, then the NPN holding will rise to close on 23%. I'm not comfortable with that. The STX40 is out for similar reasons, as is the DIVIND. I won't hold the DBX trackers, I just can't pay those fees, plus have you seen the spreads on offer. I also looked at the RMB midcap, which had relatively good performance for some time, but it also had fee and spread issues for me.
The DIVTRX on the other hand is well diversified, At worst you end up with 5% per share, currently it's under 3% per share, across a number of sectors. The costs are relatively low at 0.39%, and the spread is also reasonably small now, around 8c.
Then of course we all want decent performance. DIVTRX has done relatively well in the past, but with a "smart beta" etf, you're looking more at the methodology. DIVTRX is based on the S&P dividends aristocrats index. In SA this means all companies that have held or increased dividends in 5 years. This is turn is based on the S&P 500 dividends aristocrats model (though they need 25 years), which was modeled on the successful strategy employed by a number of successful dividend investors.
So is it a good strategy? History seems to think so. Here's a chart of the S&P dividend aristocrats 500 compared to the S&P 500:
As you can see, since 1990 it's either tracked the 500, or beaten the 500, apart for some anomoly in the early 2000's. And it most likely paid higher dividends in the process. As always past performance may not be future performance, but for me, I'm quite comfortable with the strategy. If a company does badly and cuts their dividend, they'll be out in no more than 6 months. I like this as it's a potentially fast filter, and I don't have to pay capital gains for dumping the bad share. So for now, I'll keep sticking my money into it, and keep hoping for decent growth while paying above average dividends.
I may change this in future if a better product comes around, but so far there's nothing I'd rather invest in. If anyone has a pointer as to what to look at I'd love to hear it.
6375
I know, I've been out of there for some time now, but I still believe they'll outperform their own funds, especially with divvies included.
The evidence us resoundingly against actively managed funds, it's an industry set for a long slow decline.
The evidence us resoundingly against actively managed funds, it's an industry set for a long slow decline.