WEBVTT - High-Dividend ETFs Are Having a Moment 0:00:05.760 --> 0:00:07.840 Welcome to trillion. So I'm Joel Weber and I'm Eric 0:00:07.880 --> 0:00:17.120 beltiunas Eric. Uh, the markets, the economic turbulence, everything has 0:00:17.120 --> 0:00:21.560 been a little crazy yet and yet investors have a 0:00:21.640 --> 0:00:25.720 way to make some money still. Yeah, I mean there's 0:00:26.000 --> 0:00:29.560 there's always going to be a hunt for something up performing. 0:00:29.640 --> 0:00:32.800 And obviously the last decade it's been like growth stocks 0:00:32.840 --> 0:00:35.879 and tech stocks and uh, anything that was shiny was 0:00:35.920 --> 0:00:38.240 really where it was at. Now we've got a whole 0:00:38.240 --> 0:00:42.040 new environment. And now what's interesting is one of those 0:00:42.080 --> 0:00:45.760 areas that is seeing inflows way beyond what they normally 0:00:45.800 --> 0:00:49.600 see and beyond their weight in assets, so they're punching 0:00:49.600 --> 0:00:52.879 above their weight is high dividend e t f s. 0:00:53.440 --> 0:00:56.440 And any analysts will tell you they get asked about 0:00:56.520 --> 0:00:59.040 income all the time, like that's like an evergreen topic. 0:00:59.120 --> 0:01:02.520 So you have need for yield, Yet people are skittish 0:01:02.560 --> 0:01:04.200 to get that yield in the bond market right now 0:01:04.200 --> 0:01:06.880 because they know the fit is hell bent on raising rates, 0:01:06.880 --> 0:01:10.800 so they want yield still, and normally high divid and 0:01:10.840 --> 0:01:15.080 ETFs are not that great because they tend to hold 0:01:15.200 --> 0:01:18.280 energy and utilities because that's where high dividends are. But 0:01:18.720 --> 0:01:22.520 this year those sectors rule. So you've got this perfect 0:01:22.840 --> 0:01:24.680 one two punch in these ct s. I call it 0:01:24.720 --> 0:01:28.160 the sweet spot where they've got two things that people want, 0:01:28.880 --> 0:01:32.440 which is that energy exposure and the high dividends. Um. 0:01:32.520 --> 0:01:35.479 And so they have taken in about dollars this year. 0:01:35.520 --> 0:01:38.679 That's already a record. And the problem I think they 0:01:38.760 --> 0:01:40.640 might take in fifty and they are not that big 0:01:40.680 --> 0:01:43.199 of a category. So this is a nice little feeding 0:01:43.200 --> 0:01:45.840 frenzy and we should really dive into this. I think 0:01:45.880 --> 0:01:51.120 it's a classic, UM you know how to play, uh episode? Okay, 0:01:51.160 --> 0:01:55.480 So joining us will be Todd Rosenbluth. He's a regular 0:01:55.640 --> 0:01:57.960 on Trillions and he's got a new job. He's the 0:01:57.960 --> 0:02:01.400 head of research at Verify, as well as Susanne Woollie, 0:02:01.560 --> 0:02:06.880 personal finance reporter with Bloomberg Wealth, this time on Trillions, 0:02:07.760 --> 0:02:12.720 High Dividend e t f S. Todd, Susanne, welcome back 0:02:12.720 --> 0:02:15.200 to Trillions. Good to be here, Good to be with 0:02:15.240 --> 0:02:19.280 you all. Okay, So Eric set the table there. Things 0:02:19.360 --> 0:02:22.400 have turned really quickly and all of a sudden, a 0:02:22.480 --> 0:02:25.480 category that probably a lot of people weren't paying attention 0:02:25.520 --> 0:02:29.919 to is something that people should be interested in. Todd, 0:02:29.919 --> 0:02:32.080 what kind of returns are we looking at in general 0:02:32.480 --> 0:02:35.520 in this category. So I guess to set the stage, 0:02:35.560 --> 0:02:38.079 we've got the SMP five hundred at the time we're 0:02:38.120 --> 0:02:42.840 recording this down twenty three percent. The high dividend yields 0:02:42.919 --> 0:02:47.080 tend to have have fallen half less than half of 0:02:47.120 --> 0:02:50.400 that ten percent, and in some cases they're close to 0:02:50.400 --> 0:02:53.560 treading water for the year. So you would have saved 0:02:54.000 --> 0:02:57.520 two thousand basis points, perhaps depending upon whether or not 0:02:57.600 --> 0:03:01.240 you were in some of these dividend filding e t s. 0:03:01.280 --> 0:03:02.919 And and maybe if I can, if I can pare 0:03:03.000 --> 0:03:05.240 back for a second, and maybe you guys were going 0:03:05.280 --> 0:03:09.200 to do this. But there's two main types of dividend dts. 0:03:09.200 --> 0:03:12.519 There's dividend growth ETFs, where the companies have a long 0:03:12.600 --> 0:03:15.880 record of paying and growing their dividends, but the yields 0:03:15.919 --> 0:03:18.680 are close to the broader SMP five. And then you've 0:03:18.720 --> 0:03:21.600 got these high dividend yielding ETFs that we're gonna talk about, 0:03:22.040 --> 0:03:26.120 where the yield is three, four, sometimes even five, and 0:03:26.120 --> 0:03:29.040 the companies that are constructed are based on the yield, 0:03:29.280 --> 0:03:31.720 not based on their record of paying dividends. And so 0:03:31.760 --> 0:03:35.000 I think that's an important distinction. It's not all dividend 0:03:35.080 --> 0:03:39.720 dtfs are the same as as I now say at Vertify. Okay, so, 0:03:40.160 --> 0:03:42.040 by the way, it congrats on that new gig. Before 0:03:42.040 --> 0:03:44.040 we go to Suzanne, I want to just ask you. 0:03:44.040 --> 0:03:47.640 You and Eric always have these bets going comparrently. You 0:03:47.680 --> 0:03:52.800 know what bets are live right now, So there's no 0:03:52.880 --> 0:03:55.120 dividend bet. I will say that the left there might 0:03:55.120 --> 0:03:57.520 be by the end of the episode, though there might be. 0:03:57.560 --> 0:04:00.360 The last time that I was on here, Eric's sprung 0:04:00.480 --> 0:04:04.200 a bet on me um that I said yes to 0:04:04.520 --> 0:04:07.800 on the fly, and I stick with that UM. So 0:04:07.840 --> 0:04:09.920 I'll highlight that one because that's the one I think 0:04:09.960 --> 0:04:12.400 he's more confident in any other, and he can perhaps 0:04:12.600 --> 0:04:15.240 highlight the one that he thinks I should be more confident. 0:04:15.800 --> 0:04:19.760 So last time we bet that Capital Group, which was 0:04:19.880 --> 0:04:23.280 at the time soon to launch actively managed equity t F. 0:04:23.440 --> 0:04:27.080 They subsequently did that in February. I believe in late 0:04:27.120 --> 0:04:32.120 February that they would gather have assets under management of 0:04:32.160 --> 0:04:35.840 seven billion dollars or more by the end of that 0:04:35.960 --> 0:04:40.560 first twelve month period. Uh that is alive. Bet. They 0:04:40.600 --> 0:04:43.839 are have been growing assets. It's close to two billion dollars. 0:04:43.880 --> 0:04:46.200 I realized that if he'll do the math here for 0:04:46.240 --> 0:04:48.440 you and add that up, and it will be under 0:04:48.440 --> 0:04:51.920 seven billion dollars. But we're going to see an accelerated growth. 0:04:51.960 --> 0:04:55.039 So I'm still feeling very good about that one. But 0:04:55.160 --> 0:04:57.200 that one I could see coming closer to the wire 0:04:57.400 --> 0:04:59.520 than the next one that I'll let Eric set up 0:05:00.560 --> 0:05:03.440 because I feel much more. I feel confident in in 0:05:03.640 --> 0:05:07.280 in E. S G. Yeah, So the Capitol Group, when 0:05:07.279 --> 0:05:10.479 I'm pretty confident, although they are a massive company and 0:05:10.520 --> 0:05:13.840 they know about this bet, and they can they can 0:05:13.880 --> 0:05:16.200 just move you know, a couple of billion if they 0:05:16.200 --> 0:05:18.279 wanted to, like they on the night before, they could 0:05:18.279 --> 0:05:20.280 just make Todd win. So they always have that lever 0:05:20.360 --> 0:05:22.800 they can pull, and that makes me nervous. But otherwise, 0:05:23.000 --> 0:05:27.560 like that sounds like a Boomarati conspiracy theory there, I think, Yeah, 0:05:27.720 --> 0:05:30.520 I mean UM, and plus the market's going down, so 0:05:30.560 --> 0:05:34.240 that hurts assets. So I like my chances based on trajectories. 0:05:34.240 --> 0:05:36.279 But they always have that lever. But the other better 0:05:36.360 --> 0:05:39.960 we have is I bet that of E. S G 0:05:40.120 --> 0:05:42.240 t S would liquidate by the end of this year. 0:05:42.560 --> 0:05:45.719 This is back when they had UM seventy nine or something, 0:05:45.920 --> 0:05:48.480 so I need about twenty or nineteen to liquidate by 0:05:48.480 --> 0:05:49.680 the end of the year, and so far I think 0:05:49.720 --> 0:05:52.760 only two or three have. But it's trending up. And 0:05:52.800 --> 0:05:54.599 if the market keeps getting awful and the E s 0:05:54.600 --> 0:05:57.880 G baggage keeps increasing, which it is six months, I 0:05:57.920 --> 0:06:00.279 think I've got a shot. I think my I'm like 0:06:00.320 --> 0:06:02.120 a fifteen to one shot to win that one. But 0:06:02.160 --> 0:06:04.920 I'm I'm a total favorite to win the Capitol Group one. 0:06:05.520 --> 0:06:09.280 And my recollection is that Eric has the upper hand 0:06:09.560 --> 0:06:13.680 in this betting history. Correct. Yes, yes, we We've had 0:06:13.720 --> 0:06:16.440 a couple of close ones and then Todd was Todd 0:06:16.520 --> 0:06:19.960 was silent and grimacing. Okay, Suzanne, let's let's bring you 0:06:20.000 --> 0:06:22.000 back in. UM. I want to talk to you about 0:06:22.040 --> 0:06:25.719 when you talk to investors or advisors, how how do 0:06:25.760 --> 0:06:29.360 people feel about this this category in general high dividend. 0:06:29.440 --> 0:06:32.080 I think people right now feel like pretty good about 0:06:32.080 --> 0:06:34.000 it because they're looking for anything that has like the 0:06:34.040 --> 0:06:38.080 whiff of certainty. UM. You know, having been in people 0:06:38.080 --> 0:06:42.160 have found themselves so you know, overweighted and tech not 0:06:42.200 --> 0:06:45.920 even realizing it, you know in the SMP UM and 0:06:46.080 --> 0:06:49.640 you know they are. Everyone is desperate for income, so 0:06:50.480 --> 0:06:53.719 you know, the big thing I hear about every advisor 0:06:53.800 --> 0:06:56.560 is talking about. Of course, is like Series I savings bonds, 0:06:56.560 --> 0:07:00.320 which track inflation because they're at like night point nine 0:07:00.360 --> 0:07:02.880 point six percent, but you can only buy ten thousand 0:07:02.920 --> 0:07:04.839 of them a year, so it's not going to do 0:07:04.880 --> 0:07:08.600 a lot for your portfolio. So I mean energy has 0:07:08.600 --> 0:07:12.200 been hot, like you said before, energy and UM utilities, 0:07:12.320 --> 0:07:15.640 you know, So this is an area that, like Eric said, 0:07:15.640 --> 0:07:16.800 a lot of money is going into and a lot 0:07:16.840 --> 0:07:19.640 of people are talking about. I want to jump on 0:07:19.680 --> 0:07:21.960 in quickly if I can to say I wasn't grimacing. 0:07:22.040 --> 0:07:24.360 I was being polite and waiting for Susanne to be 0:07:24.400 --> 0:07:29.520 brought into the conversation because that's that's the appropriate thing 0:07:29.600 --> 0:07:33.120 to do. UM. But I think to piggyback on on 0:07:33.160 --> 0:07:35.680 what she was saying, there's been just a search for income. 0:07:35.720 --> 0:07:39.760 You know, we've done surveys with advisors at Vertify and 0:07:39.800 --> 0:07:43.560 they're continually looking for alternatives to fixed income. So I 0:07:43.600 --> 0:07:47.440 know you've talked about covered call series of products beforehand 0:07:48.120 --> 0:07:51.760 on this platform. We've talked about, you know, inflation protection 0:07:52.160 --> 0:07:55.560 you have on this platform. The high dividend yielding products 0:07:55.640 --> 0:07:58.560 have been around a while, you know, uh I shares 0:07:58.600 --> 0:08:02.720 in Vanguard have had products that of ten fifteen year 0:08:02.800 --> 0:08:07.640 plus histories, but they've they've they've come up when investors 0:08:07.640 --> 0:08:10.440 are seeking out that income component, and we've gotten now 0:08:10.480 --> 0:08:13.800 even more products than ever before to give investors and 0:08:13.880 --> 0:08:17.400 advisors choices. One of the key things here though, is 0:08:17.440 --> 0:08:19.800 that you know, the US tenure Treasury yield is now 0:08:19.880 --> 0:08:23.920 up to three point two percent. That's pretty good. But 0:08:23.960 --> 0:08:27.120 these high dividend e t F s UM are going 0:08:27.160 --> 0:08:29.080 to yield. Some of them yield a little more than that, 0:08:29.160 --> 0:08:31.760 some a little less. But I think it's interesting just 0:08:31.800 --> 0:08:35.160 to note that I do believe investors just aren't quite 0:08:35.520 --> 0:08:38.760 They're just more scared of the bond market right now 0:08:38.800 --> 0:08:42.480 because that's where the FED has a direct impact. Whereas 0:08:42.559 --> 0:08:48.240 in and and with because bonds all all the rates 0:08:48.240 --> 0:08:49.600 are going up, all the new bonds you can get 0:08:49.600 --> 0:08:51.720 a higher rate. It really questions the value of the 0:08:51.760 --> 0:08:54.560 current bonds over on the equity side. The other thing 0:08:54.600 --> 0:08:56.439 about this is, yes, you get the yield of it's 0:08:56.440 --> 0:09:00.600 around three to three for most, but that's double the 0:09:00.720 --> 0:09:03.480 S ANDPS yield and you get that pop because it's 0:09:03.559 --> 0:09:06.800 largely in energy and utilities UM and so I think 0:09:07.160 --> 0:09:10.840 that's also important is because the return is a yield 0:09:10.880 --> 0:09:15.040 in a way to UM by not underperforming. So it's 0:09:15.080 --> 0:09:17.400 the right yield. It's not just a yield, it's it's 0:09:17.400 --> 0:09:19.160 a it's a it's a better yield. I think for 0:09:19.200 --> 0:09:21.920 many investors until the FED cools off, I just think 0:09:21.920 --> 0:09:23.840 the bond market is going to be a tough place. 0:09:24.080 --> 0:09:26.480 We've seen it in the flows in mutual funds in particular, 0:09:26.640 --> 0:09:29.559 a lot of older investors are bailing UM. So that's 0:09:29.559 --> 0:09:32.319 gonna be a constant drain on the prices of bonds 0:09:32.440 --> 0:09:36.240 for the foreseeable future. So UM, it's interesting how this works. 0:09:36.240 --> 0:09:40.240 Sometimes an et F category just it just just troads 0:09:40.280 --> 0:09:42.959 along for a decade like oh yeah, whatever, and then bam, 0:09:43.040 --> 0:09:45.520 the star is just aligne and it's like got it's 0:09:45.520 --> 0:09:49.000 got what everyone wants. So todd as these stars sort 0:09:49.040 --> 0:09:52.520 of ALIGNE. Let's walk through some of the tickers that 0:09:52.840 --> 0:09:55.080 UM jump out to you. What's what's your number one? 0:09:55.160 --> 0:09:58.560 Because there's like what Tannard twelve in this category that 0:09:58.600 --> 0:10:01.680 have sort of attracted it engine. What's your number one? Yeah, 0:10:01.720 --> 0:10:04.920 well my number one or the number one, so you 0:10:04.960 --> 0:10:07.880 know the most popular. Let's do let's do the number 0:10:07.880 --> 0:10:10.439 one and then you can do your number one. Sure, 0:10:10.640 --> 0:10:14.360 So the most popular of these ETFs this year based 0:10:14.400 --> 0:10:16.600 on my data, I'm sure Eric stated will agree with 0:10:16.640 --> 0:10:19.920 this is HDV. This is the I shares Core high 0:10:20.000 --> 0:10:23.679 dividend uh e t F. It's pulled in as we're 0:10:23.720 --> 0:10:27.280 recording this five and a half billion dollars. It's down 0:10:27.400 --> 0:10:31.640 just one and a half percent. It's extremely cheap. UH. 0:10:31.640 --> 0:10:34.360 It's it's focused on those sectors that that Eric was 0:10:34.400 --> 0:10:38.160 talking about, not only but it has above average exposure 0:10:38.520 --> 0:10:44.480 to high dividend yielding stocks within energy and utilities. UM. 0:10:44.520 --> 0:10:48.480 I want to call out I guess two other ones, uh, 0:10:48.640 --> 0:10:51.320 that are one that is popular and one that I 0:10:51.360 --> 0:10:53.000 find to be under the radar. And I'm not sure 0:10:53.000 --> 0:10:57.280 why it's not as popular. So sp h D, which 0:10:57.559 --> 0:11:02.959 is in Investco SMP five High Dividend Low Volatility e 0:11:03.120 --> 0:11:05.880 t F UM. I think I got that name right, 0:11:05.920 --> 0:11:09.160 and where the dividendendo low volatility is on this This 0:11:09.240 --> 0:11:12.160 is as the name suggests, it not only owns well, 0:11:12.200 --> 0:11:15.360 it starts with the SMP five hundred that's important, uh, 0:11:15.400 --> 0:11:18.280 and then it looks at companies that have both a 0:11:18.320 --> 0:11:22.720 low risk profile less volatility as well as an above 0:11:22.760 --> 0:11:26.480 average dividend yield. It's pulled in about a billion dollars 0:11:26.880 --> 0:11:29.640 this year. It's down four and a half percent, so 0:11:29.920 --> 0:11:33.880 doing still much better than the SNP five hundred. And 0:11:33.920 --> 0:11:38.000 then there's an alps UH sector dividend dog ETF the 0:11:38.080 --> 0:11:41.360 tickers S, D O, g UM. I think Suzanne has 0:11:41.360 --> 0:11:43.080 a dog that's staying with her. I've got a dog 0:11:43.200 --> 0:11:45.920 sleeping not that far from me. That ticker S dog 0:11:46.040 --> 0:11:48.960 is just fun to say out loud. But what's compelling 0:11:49.040 --> 0:11:52.000 to me about this is that it's equally weighted at 0:11:52.040 --> 0:11:55.040 the highest dividend yielding stocks across all of the sectors, 0:11:55.040 --> 0:11:58.679 so it isn't dominated by energy and utilities that has 0:11:58.800 --> 0:12:03.679 some technology exposure less than a broader market, some financials exposure, 0:12:03.720 --> 0:12:06.440 I think, less than a broader market, but it's equally 0:12:06.440 --> 0:12:08.720 spread out there. UM, and I'm a little surprised it 0:12:08.720 --> 0:12:11.280 hasn't pulled in that much money is I think it's 0:12:11.280 --> 0:12:13.960 just under a hundred million in net influence this year. 0:12:14.000 --> 0:12:17.960 But it's it's performing well, and it's it's well constructed. 0:12:18.000 --> 0:12:20.240 So I guess those are the Those are three of 0:12:20.240 --> 0:12:24.000 them that jump out to me. I'm confident my fellow 0:12:24.280 --> 0:12:27.199 et f analyst NERD is going to have three different ones. 0:12:28.320 --> 0:12:29.880 How do you feel about the reads? It has a 0:12:29.920 --> 0:12:34.800 big slug of reads, doesn't it? Real Estate investment trusts? Yeah, 0:12:34.840 --> 0:12:37.200 I mean real estate is you know, important sector to 0:12:37.240 --> 0:12:40.960 have exposure to. It tends to historically do okay during 0:12:40.960 --> 0:12:44.000 a rising interest rate environment and real estates different than 0:12:44.040 --> 0:12:48.680 it was years ago. Especially we've got these former communication 0:12:48.720 --> 0:12:52.760 services companies American Tower, Crown Castle that are above average 0:12:52.840 --> 0:12:56.160 dividud yielders. So I like that it's got exposure to 0:12:56.200 --> 0:12:59.400 it to real estate. That's that's a important thing to 0:12:59.400 --> 0:13:01.960 be aware of. Some of these don't have exposure to 0:13:02.000 --> 0:13:04.960 real estate. They intentionally carve out. Real estate is one 0:13:05.000 --> 0:13:08.480 of the sectors. Some don't. So it's important to take 0:13:08.480 --> 0:13:10.560 a look at it and do do some homework on 0:13:10.600 --> 0:13:14.480 these ETFs. Yeah. I mean I think if if you 0:13:14.559 --> 0:13:16.880 if they yield is really high or the returns are 0:13:16.960 --> 0:13:20.280 just abnormally good, it's probably concentrated in something like it 0:13:20.320 --> 0:13:23.679 probably has more energy um or more reads. I mean, 0:13:24.160 --> 0:13:26.560 I think that's something you have to weigh. And you know, 0:13:26.760 --> 0:13:29.480 this is why Todd and I have job security because 0:13:29.840 --> 0:13:33.400 even amongst high divided ETFs, which they're all have sounded 0:13:33.400 --> 0:13:35.679 the same. There are a lot of differences. And I 0:13:35.679 --> 0:13:37.640 actually went through when I wrote my note two weeks 0:13:37.640 --> 0:13:40.680 ago and just look at the prospectives for how they're designed, 0:13:41.240 --> 0:13:43.160 and like I mean, I guess you could say they're 0:13:43.160 --> 0:13:46.160 all similar, but they start with a different universe, like UM, 0:13:46.200 --> 0:13:48.800 the I Shares HDV. The I shares one starts with 0:13:48.840 --> 0:13:51.640 the morning Star US Market Index and then it picks 0:13:51.679 --> 0:13:56.439 the eighties stocks with the strongest UM, financial health and dividends. 0:13:56.440 --> 0:13:59.319 So there's a fundamental aspect to that one. And then 0:13:59.320 --> 0:14:02.120 it waits it by dividends. So then their s P 0:14:02.320 --> 0:14:05.600 y D, which is the SMP five hundred is the universe. 0:14:05.800 --> 0:14:08.480 It takes the eight highest then it kind of equalates 0:14:08.520 --> 0:14:11.400 it more or less um. And but both those and 0:14:11.440 --> 0:14:13.440 there's the feet. Both of those are ten basis points fee, 0:14:13.440 --> 0:14:15.240 which is really good. That's another thing about this area. 0:14:15.600 --> 0:14:19.320 It's very cheap, like compared to like buying an dividend 0:14:19.400 --> 0:14:21.480 manager E t F back in the day. This is 0:14:21.520 --> 0:14:25.040 like dirt cheap. It's a it's really a great service, 0:14:25.080 --> 0:14:27.000 I think to have this kind of access for these 0:14:27.000 --> 0:14:29.920 costs UM, but there are difference this year and then 0:14:29.960 --> 0:14:32.800 like the Vanguard one which is very popular v y 0:14:33.040 --> 0:14:36.800 M that uses the Footsie universe and it picks five 0:14:36.880 --> 0:14:40.200 hundred companies, So obviously that's not going to pop as much. 0:14:40.280 --> 0:14:43.720 So I love I love the field number of holdings. 0:14:43.920 --> 0:14:46.360 That's an underrated field for E t F in my opinion, 0:14:46.960 --> 0:14:49.760 because I think most people in sniff test wise can 0:14:49.800 --> 0:14:52.560 can understand like, oh, it holds three D stocks, okay, 0:14:53.120 --> 0:14:56.880 versus like fifty or eighty you know, uh, that can 0:14:56.920 --> 0:14:58.320 tell you how you should use it. So I would 0:14:58.360 --> 0:15:00.320 say for the ones that hold a D you really 0:15:00.320 --> 0:15:03.640 should consider that like a satellite position, um, whereas you 0:15:03.640 --> 0:15:06.440 could almost move in a v y M a little 0:15:06.480 --> 0:15:08.800 a little more into your core, I mean, depending on 0:15:08.840 --> 0:15:12.480 what your goal, your goals are UM. And then there's 0:15:12.640 --> 0:15:14.080 you know, I guess there's a slew of other ones. 0:15:14.160 --> 0:15:20.000 Everybody has one, Wisdom Tree has one, First Trust has one. 0:15:23.840 --> 0:15:28.440 When you guys break the numbers down for this category, 0:15:28.640 --> 0:15:31.440 I mean there are we've talked about energy and utilities. 0:15:32.040 --> 0:15:35.720 Is there a given company or stock that ends up 0:15:36.400 --> 0:15:40.680 basically everywhere at a high percentages it like Exxon shows 0:15:40.760 --> 0:15:43.680 up everywhere in this category, so it I guess it 0:15:43.720 --> 0:15:47.120 depends It depends upon the criteria of it. So if 0:15:47.120 --> 0:15:49.440 you're looking at high dividend, you know, if if the 0:15:49.440 --> 0:15:53.360 focus is above average dividend yield, I would think companies 0:15:53.360 --> 0:15:59.040 like Exxon Mobile and Johnson and Johnson, those uh are 0:15:59.360 --> 0:16:03.880 higher divd in yielding stocks. Verizon perhaps if communication services 0:16:03.960 --> 0:16:06.120 part of it, that's that tends to happen. But I 0:16:06.480 --> 0:16:08.400 want to just if I can, for a second, go 0:16:08.400 --> 0:16:11.440 back to what Eric said. The number of holdings is important, 0:16:11.640 --> 0:16:13.600 but the other thing that he said that I'll agree 0:16:13.640 --> 0:16:17.480 with is how concentrated are those holdings and whether there's 0:16:17.520 --> 0:16:21.360 equally weighted aspect to it or not. So HTV that 0:16:21.480 --> 0:16:24.360 I shares core hygh divid and DTF has seventy five stocks. 0:16:24.400 --> 0:16:27.560 That's actually about what you'd find within the s dog 0:16:27.560 --> 0:16:30.480 one I keep referencing. But x On Mobile is nine 0:16:31.760 --> 0:16:34.840 of HDV. It's going to perform better when energy does 0:16:34.920 --> 0:16:38.720 better because and when Xon in particular does better because 0:16:38.920 --> 0:16:42.120 of that concentration. It's going to struggle that same way 0:16:42.360 --> 0:16:47.280 if a company or two that that's heavily weighted underperforms. 0:16:47.840 --> 0:16:49.760 So I just looked up x in and then I 0:16:49.800 --> 0:16:53.200 searched for high dividends it's in most of them. Um. So, 0:16:53.920 --> 0:16:56.160 first first point here is if you're an E s 0:16:56.160 --> 0:16:58.640 G type, do not invest in high divid and ETFs, 0:16:58.880 --> 0:17:01.120 which which brings me up to the problem with the 0:17:01.280 --> 0:17:04.040 s G and being moral when you invest is at 0:17:04.080 --> 0:17:07.080 some point the money is gonna win, You're gonna go. 0:17:07.200 --> 0:17:10.800 You know, I need the yield, I like the return. Uh, 0:17:11.119 --> 0:17:13.800 screw it. That's a one point. The second point is 0:17:14.200 --> 0:17:16.880 if you look at Exxon and you look at something 0:17:16.920 --> 0:17:19.920 like HDV, XN is an eight point seven percent waiting 0:17:19.920 --> 0:17:23.120 in that one, But then in v y M I'm 0:17:23.119 --> 0:17:25.640 looking here, XN is a much more tame two point 0:17:25.680 --> 0:17:29.280 six percent waiting. And that's going to happen throughout these 0:17:29.280 --> 0:17:31.280 e T f Uh. Some stocks are going to have 0:17:31.320 --> 0:17:34.280 a much higher weighting. Um, I think you tend to 0:17:34.280 --> 0:17:36.040 find like the Van Guardian ones are going to be 0:17:36.080 --> 0:17:38.679 like more market cap weighted, so XN couldn't possibly be 0:17:38.760 --> 0:17:43.800 eight percent. But then, um, everybody else, Wisdom Tree, even 0:17:43.840 --> 0:17:47.240 I shares, You're gonna find some weight equally or by 0:17:47.280 --> 0:17:50.000 the factor itself. And if it waits by the factor 0:17:50.000 --> 0:17:53.360 itself like dividends, you clearly are going to have some 0:17:53.400 --> 0:17:56.320 stocks that dominate the fund and that can be a 0:17:56.320 --> 0:17:58.600 little scary because yes, this thing yields a lot, but 0:17:58.640 --> 0:18:01.280 now it's really controlling your fund. So I think it's 0:18:01.320 --> 0:18:04.120 really interesting, and I think some investors probably would opt 0:18:04.160 --> 0:18:07.960 for the equal weighted version UM on these UM. There's 0:18:08.119 --> 0:18:10.879 there's just these are probably the greatest example on like 0:18:10.960 --> 0:18:15.639 the due diligence checklist for an ETF because there's several 0:18:15.640 --> 0:18:17.600 ways these could go and then the you know obviously 0:18:17.640 --> 0:18:21.479 that this waiting and the UM expense ratio and all 0:18:21.520 --> 0:18:23.840 this just kind of adds up to a different return stream. 0:18:23.960 --> 0:18:26.040 Although I gotta say, if I look at them, they're 0:18:26.080 --> 0:18:29.040 all doing pretty good relatively SMP. There's there's no real 0:18:29.119 --> 0:18:31.360 crazy outliers that it's like, well, what's this doing? It's 0:18:31.359 --> 0:18:33.880 not labeled correctly. I mean, you really do get high 0:18:33.960 --> 0:18:36.040 dividends with most of these, but their their approaches are 0:18:36.080 --> 0:18:39.000 pretty different. Susanna. Want to bring you back in. We 0:18:39.040 --> 0:18:42.160 didn't get to hear some of your favorite tickers yet 0:18:42.520 --> 0:18:44.960 UM in the space. Which ones have we not talked 0:18:45.000 --> 0:18:48.840 about that UM that are on your list. I mean 0:18:48.920 --> 0:18:52.159 I was looking at h DV, like we talked about 0:18:52.480 --> 0:18:54.879 the ice shares one UM. What was interesting to me 0:18:54.920 --> 0:18:56.720 that I sort of wanted to ask you guys about 0:18:56.880 --> 0:18:59.840 was that you know so much of it. The main 0:19:00.080 --> 0:19:03.320 the biggest holdings in that fund are in the top 0:19:04.000 --> 0:19:08.040 of the SMP, the top twenty stocks the spire. So 0:19:08.040 --> 0:19:10.880 it just made me sort of laugh in a way 0:19:10.920 --> 0:19:13.600 because you know what we've seen as our portfolios dominated 0:19:13.640 --> 0:19:16.240 by the top ten percent, the top ten stocks in 0:19:16.280 --> 0:19:18.280 the SMP, and now we're going to move into these 0:19:18.320 --> 0:19:21.000 high dividend yield e t f s and get into like, 0:19:21.359 --> 0:19:24.240 you know, number ten to number twenty in the SMP. 0:19:24.400 --> 0:19:30.280 Five d um, But I don't know hdv V I am. 0:19:30.320 --> 0:19:32.919 I was looking at when I was curious that I 0:19:32.960 --> 0:19:37.359 wanted to run by you guys was what international dividend 0:19:37.600 --> 0:19:41.000 e t f s should we be looking at? And 0:19:41.200 --> 0:19:44.399 do any of them have a big chunk, big mix 0:19:44.440 --> 0:19:49.240 of US and international dividend ETFs dividend stocks? Yeah, I 0:19:49.240 --> 0:19:52.159 mean most of these are going to have some international version. 0:19:52.400 --> 0:19:55.400 I mean these companies d it's like, um, any sort 0:19:55.440 --> 0:19:58.720 of product. You know, you've got coke, diet coke, cherry coke. 0:19:59.200 --> 0:20:02.320 It's just like high divid international, high different global. So 0:20:02.400 --> 0:20:04.600 like for example, v y M has v y M I, 0:20:04.960 --> 0:20:07.920 which is the International High Dividend, which is very similar. Um, 0:20:08.080 --> 0:20:11.000 so yeah, they're they're gonna do that, and I'm just curious. 0:20:11.080 --> 0:20:13.480 Let's look at the yield difference between the two. So 0:20:13.840 --> 0:20:16.040 if v y M gives you a yield of two 0:20:16.040 --> 0:20:19.720 point eight percent, which is low, but again Vanguard when 0:20:19.720 --> 0:20:22.120 they view factors, they really water them down by market 0:20:22.160 --> 0:20:26.880 cap waiting. Anyway, the International one yields double that four 0:20:26.920 --> 0:20:30.520 point seven percent, So you know you're probably gonna get 0:20:30.560 --> 0:20:32.640 a lot more yield over there. But that then you're 0:20:32.640 --> 0:20:36.440 in international stocks, which have you know, can have issues. Um, 0:20:36.640 --> 0:20:38.080 a lot of people like to stick in the US. 0:20:38.119 --> 0:20:39.960 I don't know if Todd, do you have a take 0:20:40.040 --> 0:20:41.800 on like if some if your mom came to you 0:20:41.840 --> 0:20:43.560 and one at high dividends, would you center a US 0:20:43.640 --> 0:20:47.080 or international? Well, I think you should. I think if 0:20:47.119 --> 0:20:51.119 you're gonna have international equity as a carve out of 0:20:51.160 --> 0:20:54.199 your portfolio, then and it certainly can make sense to 0:20:54.240 --> 0:20:56.800 have something like v y M I, which is that 0:20:56.920 --> 0:21:01.760 a Vanguard High Dividend Yield International E t F as 0:21:01.800 --> 0:21:04.160 an example. I don't know that I would be seeking 0:21:04.400 --> 0:21:06.720 just income for that, I would be using that as 0:21:06.720 --> 0:21:12.320 my international slug of the portfolio um But Susan your 0:21:12.440 --> 0:21:16.320 question prompted me to just go into too quickly search 0:21:16.400 --> 0:21:18.520 for it because I actually had forgotten this e t 0:21:18.640 --> 0:21:22.439 F existed and maybe there's others, But there's a spider 0:21:22.640 --> 0:21:25.760 SNP Global Dividend e t F W d I V 0:21:26.840 --> 0:21:31.400 which is actually much more internationally focused than than your 0:21:31.440 --> 0:21:36.199 typical UH all country world or global approach to it. 0:21:36.320 --> 0:21:40.720 So it only has about in the United States and 0:21:40.760 --> 0:21:47.040 then Canada, Japan, Hong Kong, Switzerland, UK rounded out, and 0:21:47.160 --> 0:21:49.800 so I think that that's being constructed in part based 0:21:49.840 --> 0:21:53.240 on the yield. This is the challenge when you try 0:21:53.240 --> 0:21:55.240