ownyourfuture
Thinks s/he gets paid by the post
- Joined
- Jun 18, 2013
- Messages
- 1,561
Received an email from contrarian outlook today. The gist of the article is that one of the top dividend ETFs, Schwab U.S. Dividend Equity (SCHD) which holds 104 dividend stocks, holds no Exxon Mobil.
The author goes on to point out that it’s a bull market in oil & a bear market in everything else (with the exception of the US dollar.)
At the time of the article, XOM was up 61% over the past year, while SCHD was down 6%
Even if Exxon was the number 1 holding in the fund, it wouldn't have made a huge difference. That being said, every little bit counts, & the manager should strive to provide the best return possible for shareholders.
https://contrarianoutlook.com/the-fatal-flaw-in-the-worlds-most-popular-dividend-etf/
Since I own a similar ETF (Vanguard Dividend Appreciation Index Fund) (VIG)
I decided to see if it held Exxon shares. In spite of having 289 different dividend paying stocks, (unless I missed it) zero Exxon shares.
https://investor.vanguard.com/investmentproducts/etfs/profile/vig#performance-fees
I'm somewhere in the middle when it comes to climate change, but I can't agree with this.
The fund summary at Vanguard states
“Large-cap equity, emphasizing stocks with a record of growing their dividends year over year”
There's only so many dividend aristocrats out there, & in my opinion, they should all be included in funds like these.
Save this BS for socially conscious funds.
The author goes on to point out that it’s a bull market in oil & a bear market in everything else (with the exception of the US dollar.)
At the time of the article, XOM was up 61% over the past year, while SCHD was down 6%
Even if Exxon was the number 1 holding in the fund, it wouldn't have made a huge difference. That being said, every little bit counts, & the manager should strive to provide the best return possible for shareholders.
https://contrarianoutlook.com/the-fatal-flaw-in-the-worlds-most-popular-dividend-etf/
Since I own a similar ETF (Vanguard Dividend Appreciation Index Fund) (VIG)
I decided to see if it held Exxon shares. In spite of having 289 different dividend paying stocks, (unless I missed it) zero Exxon shares.
https://investor.vanguard.com/investmentproducts/etfs/profile/vig#performance-fees
I'm somewhere in the middle when it comes to climate change, but I can't agree with this.
The fund summary at Vanguard states
“Large-cap equity, emphasizing stocks with a record of growing their dividends year over year”
There's only so many dividend aristocrats out there, & in my opinion, they should all be included in funds like these.
Save this BS for socially conscious funds.
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