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Originally Posted by Hillbilly
1. Why to you have it? For the dividends? CG? Both? What influenced you most to purchase it?
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Dividends and a decent screening process, plus a lot lower ER than we'd seen in other choices (up until we bought it). A big influence on our thinking was favorable dividend taxes and Siegel's "The Future For Investors".
Quote:
Originally Posted by Hillbilly
2. What are your (return,risk, income) expectations? per year?
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~3% steady dividends without much price fluctuation. Decent large-cap value investments. Long-term growth (decades). Of course our initial purchase was at $55/share and I don't think we'll see that price again-- this year anyway. I'd expect it to be a lot less volatile than an international index or a small-cap value ETF.
Quote:
Originally Posted by Hillbilly
3. It seems to be about 50% financials & 15% utilities sector wise invested per MS. How does this effect, if any, the way you invest outside this ETF?
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Today we have 23% in Berkshire Hathaway, 23% in small-cap value (mostly IJS), and 23% in international dividends (mostly PID). We're in the middle of rebalancing and just sold about a third of our Berkshire shares. When we're done rebalancing, the last 8% of our portfolio will be in cash and a big chunk of our expenses are paid by my govt pension. We're more focused on DVY's large-cap allocation and its dividends than on the sectors.
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Originally Posted by Hillbilly
4. What % of your overall port. is invested in DVY?
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14% now and ramping up to 23% over the next few weeks. It'll be interesting to see how low they can go!
Quote:
Originally Posted by Hillbilly
5. When was your first purchase? How often do you add money, if any?
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Four years ago. From here out we only expect to add shares during rebalancing.
Quote:
Originally Posted by Hillbilly
6. Do you consider this ETF a core holding and plan to hold over 10 years?
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Yup.
Quote:
Originally Posted by Hillbilly
7. At what performance level would you sell? (Ex. 3 years lagging S&P 500?)
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Nope. The idea of the ETF is that it's already picked the winners according to dividend longevity & increases. I'd only compare it to a similar index (certainly not the S&P500) and even then I wouldn't get my knickers in a knot unless something came out with a lot less than a 0.40% ER.
Well, actually I'd sell if I was rebalancing because it had grown to over 28% of the ER portfolio. But it'd have to be on a real tear (or the rest of the portfolio would have to take a catastrophic hit) for that to happen.
Quote:
Originally Posted by Hillbilly
8. What do you do with the dividends?
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Reinvest. We turned that off for a bit last year to replenish our cash stash but I suspect the market will make reinvestment seem compelling for at least the next couple of years.