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Old 11-20-2021, 06:25 AM   #21
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Thanks for the list of dividend tech companies. The largest technology ETF (by assets) is Vanguard's VGT, which has those same stocks:
https://investor.vanguard.com/etf/pr...folio-holdings
Why Amazon and Google are not in VGT? They are technology stocks.
They are in VUG.
Any thought about VGT vs VUG?
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Old 11-21-2021, 07:32 AM   #22
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You mean Amazon the retail company? And Google the communications company?

Vanguard uses a provider to decide the market segment for each stock. A few years ago, several companies were shifted out of tech, and moved into other segments. Amazon and Google were among the victims of that migration.

You could go with Nasdaq 100 (QQQ), which is the most popular tech ETF, with VGT second. Third place is Technology Select Sector SPDR Fund (XLK) if QQQ isn't what you had in mind.
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Old 11-22-2021, 08:08 PM   #23
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Thank you.
I am certainly interested in QQQ.
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Old 11-23-2021, 06:29 AM   #24
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QQQ = Questions, Questions, Questions


I've been thinking about this also. Add the risk, or just be content with the value side in our taxable portfolio. Maybe QQQ or something similar? But...

"Technology and communications stocks dominate QQQ stock, accounting for more than two-thirds of the index. That heavy sector concentration is a risk. The QQQ will suffer much more than the S&P 500 if tech stocks correct."
https://www.investors.com/news/techn...stock-buy-now/

I suppose this depends on how the account is used, what purpose it serves.
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Old 11-23-2021, 01:46 PM   #25
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QQQ has $213 billion in assets, a few of which were just added days ago.
https://etfdb.com/etf/QQQ/#fund-flows

I view QQQ as tech ETF, which you can see from it's top holdings. (GOOG + GOOGL are the same company, so Google is the #3 holding).
https://etfdb.com/etf/QQQ/#holdings

QQQ has double the weight of the top tech stocks in the stock market. As long as those holdings beat the market, so will QQQ. But nobody can say if, or how long that will be.

I bought QQQ earlier this year because I don't think the advantage is going away soon. Those big holdings can control an aspect of the internet, and are still allowed to buy up competitors. I don't think Congress knows what to do about it. (And sometimes doesn't know anything about it, like Zuckerberg's famous "Senator, we run ads" line)
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Old 12-21-2021, 07:06 PM   #26
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A total return focus has beat out a dividend focus in the past, at least for indices.

As the Great Recession taught everyone, companies have no qualms about cutting or eliminating dividends altogether when times get tough.

Even though the conventional wisdom in the years before the GR was that they wouldn't.

Would it be worth complementing say market index funds with some dividend ETFs or mutual funds?

To withdraw dividends as cash at some point?
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Old 12-29-2021, 02:15 PM   #27
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For me, correlations can help find a lack of diversification from two assets that are overly correlated. Someone investing in both VYM and SCHD should be aware they are very similar ETFs.
Overlap is in 89 holdings. SCHD is total 100-102 so yes overlap is significant.

SCHD holds best of VYM holdings. That is why it significantly outperformed VYM. So in performance they are not correlated at all
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Old 12-29-2021, 02:24 PM   #28
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I suggest that Schwab isn't basing their ETF on Vanguard Whitehall offering.

Quote:
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100™ Index.
VYM follows a different index.

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Seeks to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields.
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Old 12-29-2021, 03:17 PM   #29
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Would it be worth complementing say market index funds with some dividend ETFs or mutual funds?

To withdraw dividends as cash at some point?

I think that depends on your assets in tax deferred, your SS, any pensions and your spending and where your RMDs will put you tax wise.
I'm staying away from dividends as I don't want any additional forced income that will drive me above my spending and add to my taxes. I'm not at RMD age yet, but looking at those, makes me not want dividends.
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Old 12-29-2021, 03:31 PM   #30
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No pensions yet and won't be taking RMDs for awhile.

But I've been just living on dividends including VIG for the past 5 years or so, no actual redemptions, so the value of the shares have really grown a lot in this period.

Probably means I should be redeeming more before SS and RMDs.

But I'm also looking at investments for others, who do not have much income. Though arguably, they should probably look to withdraw in the next 5-7 years as well.
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Old 01-14-2022, 07:10 AM   #31
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Thank you all for responding.
With interest rate hikes, most likely stocks will go sideway in the long term.
I think VYM is a good bet for long term holding with high dividend yield.
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