The last 6 months have been rather weak for Tech ETFs such as IITU and even Global tracker ETFs like the benchmark SWDA.
I see that dividend ETFs show better performance as well as paying dividends.
It expected that we will continue to see volatility during October/November 2024, so it may be better to switch some funds into dividend and value ETFs during this period.
The table below shows some of the best ETFs available in the UK and for comparison IITU and SWDA. Some Dividend ETFs are accumulating funds and some pay dividends.
A 6-month chart is shown below:
Depending on whether you want the dividends as income or prefer an accumulating ETF, you can choose from one of these top dividend ETFs. You can use the Justetf.com site to compare them.
SGQX looks like a good dividend accumulating ETF and GBDV a good dividend paying fund for UK portfolios. SGXD has paid over 7% in dividends this year. Despite it's popularity the Vanguard VHYG does not seem to be a top performer in the last 6 months.
SGQX in the last 6 months has shown almost 12% gain whereas SWDA only 4% and IITU 9%.
IUKD (distributing, 90% UK stocks) however has beaten even SGQX in the last 6 months and even beaten SWDA in the last year, only IITU and LDUK has beaten IUKD in the last year. This may not be a good long term investment however as it has UK stocks and is not global.
This indicates to me that during times when the magnificent 7 and Tech companies are losing market confidence, it can be worthwhile increasing my holdings in dividend paying companies - I currently hold IUKD (distributing) and LDUK (distributing) as a good UK hedge against USA/Tech/Magnificent 7 ETFs, but I could have chosen SGQX or SGQL (accumulating, global quality).
US ETFs have suffered from the FX rate recently too, so a GBP ETF like IUKD or LDUK may also help in this respect for UK investors.
My core long-term ETFs are still SWDA/XDEQ however (with IITU and IUCM).
Please let me know if you have any other suggestions.
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