Which dividend ETF ?

[eta2020]

Quote:

Originally Posted by papadad111 OP here. Had Anyone done an analytic study on the *total return* of these ? Eg. : Annual Yield less ETF management expenses plus appreciation --- Then compared the same parameters to SPY or VTI or other broad market indices over,say, the last 20 years ? What will the data reveal ? I suspect the dividend ETF's are not beating the broad market in total return and are only "tricking us" into thinking the higher yield is better while the total return is actually equal or lower . A comment on "not touching principle " is exactly why I bring up and ask this question.

They underperformed over last 5 years. (This bull market)

They outperform over long periods of time (10-20 years, I mean dividend growers not high yield payers).

[OrcasIslandBound]

http://etfdb.com/dividend-etf/what-y...dividend-etfs/

Good summary of top dividend yield etfs


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[ETFs_Rule]

XLP - 2.6% less volatile during stock bear markets.
IDU - 3.72% Pays more but will be more sensitive to interest rates.

[papadad111]

Thanks all. Aside my core holdings of VTI,VXUS, SPY, I am going to build a long term position in VYM to replace DIA.

I'm a total return investor, generally, but think dividends may outperform total market appreciation. Also hard to argue that the tax treatment will get any better than what we have right now on dividends.