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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Exchange Traded Funds are a great way to invest cheaply and effectively.

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The best funds I have come across have a playlist here

first video I've seen from you, great content- I've subscribed.

[msarros]

Dear Ian, thank you for your unique videos. I have found funds I didn't know existed like the GGRG or LG global 100. I was wondering if there are any tech etf or funds to recommend when we want to invest in artificial intelligence. I would be grateful if you could consider making a video on this. Thank you once more for your content! Regards, Mario's from Aberdeen.

[mozyrevo]

I hold GGRG and like it - its my 3rd biggest position, behind fundsmith and JGGI - my only issue with it being its a small etf and the liquidity and daily trading volumes are low. Puts me off buying even more.

[qgrQCiooVyTzx]

Love 'WisdomTree Global Quality Dividend Growth', but I'm investing into distributing version (GGRP).

Also, 'Fidelity Global Quality Income' (FGQD) is another great global ETF.

[PolishedPixels]

Hi Ian, thanks in advance for the questions!

Would you hold an ETF like this on a potential forever basis?
What percentage of a portfolio would you hold in this?
Where else/what other ETFs etc would you also invest in? I assume you would also capture some of the Small Cap space?
What do you think of the Golden Butterfly portfolio (obviously not good for bonds at the mo etc) hence when interest rates drop how would you adjust your portfolio, would you add bonds into the mix?
Do you also invest in high quality individual stocks and if so what would be the most as a percentage of a portfolio that you would invest in a high quality single stock?

Ta, Paul

[kevinsayers]

Thanks Ian. You had highlighted this previously which had piqued my interest in GGRG. I also like the Royal London Global Fund you had highlighted a few weeks back. I've bought one and the other is on my buy list.

[matthaeus_jacomus]

I've held GGRG for about a year, I really like it but have sold some then bought more then sold some again as nobody in the investing world seemed to speak about it in any if these type of videos, so i keep thinking that the "experts" know something I don't, and that it may not be as good as i think it to be.

[Richard-kful]

Great Video and interesting ETF.
For UK exposure I hold Vanguard’s FTSE UK Equity income OEIC which has a low 0.14 fee which I like. Would be interested yours & others thoughts on this fund.

[rajibear]

Wisdom Tree are one of the smaller etf providers. Is there any risk that if it went bust an investor would loose their capital?

[vaasa]

Thanks for the insight - tempted but my provider does not list this as being available (UK)

[johnhendra]

What is the average dividend growth of this fund? No one seem to consider this aspect of these fund but growing dividend s add up.

[itsmecal]

What’s the main difference between GGRG and GGRP? Anyone thanks 🙏

[neilhopkins-dlvm]

What’s your thoughts on Bond ETFs as a product to de risk a portfolio?

[ExGTrickshotz]

Thanks Ian, any reason not to get IWFQ over this? Larger fund size

[albtraum]

I like VHYL, no ESG and lots of energy/oil 😊