I have been investing for gain since my 50's and due to inheritance from my parents as well as excess pension income, I have managed to build up a good sized portfolio.
Previously, my investments have always been heavily biased towards Global MSCI World as a core and Tech ETFs as satellite holdings.
However, due to the recent economic downturn in the UK, and given that both the USA and Europe are not predicted to be strong growth areas in the next few years, I have been looking for ETFs which will give me a safer alternative market return than any USA/EU ETFs which are heavily weighted in Tech\AI companies, so I am looking at Global non-US dividend ETFs which have a good dividend growth history.
I used justeft.com to whittle this down to a few USD-based distributing ETFs all based in Ireland...
I already hold PSRU for a UK FTSE holding and many ETFs which are high in USA companies. I also had previously done well with BNKE for a Europe STOXX ETF (which seems to be underperforming just recently but is still worth holding).
We can see that three dividend ETFs are shown in the first three columns below...
I don't really care how much dividends they pay, as I will reinvest the dividends anyway, however I want distributing ETFs because this will be held in my GIA and so it will make calculating CGT easier than holding an accumulating ETF and having to calculate ERI each year.
HDEM and SEDY are China-heavy and Energy-heavy, whereas IAPD is weighted towards Australia, Hong Kong and Singapore with Basic Materials rather than Energy.
I find it difficult to just pick one of these, so my current thought is to pick two (either HDEM or SEDY) AND IAPD. Unless it is a coin-toss between two identical ETFs, I don't bother to look at the TER charge of ETFs, other than to check it is reasonable. The fund size is important however, as an ETF with a low fund size may take a few days to sell.
HDEM seems a slightly better choice than SEDY based on performance this year (though not all years!) so I will look at both HDEM and IAPD and buy at the bottom (hopefully) during the next two months. To start off, I have bought £1K of each.
If you have a favourite non-USA dividend ETF, please let me know.
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