Top performing global dividend Exchange-Traded Fund (ETF) in the market?
In the world of dividend exchange-traded funds (ETFs), the Franklin Global Quality Dividend UCITS ETF has been making waves. This lesser-known ETF in Germany has been outperforming its competitors, including the Vanguard FTSE All-World High Dividend Yield UCITS ETF, in terms of returns.
A Focus on Quality and Sustainability
The Franklin Global Quality Dividend UCITS ETF stands out from the crowd by focusing on the quality and sustainability of dividends. This approach, which prioritizes companies with strong fundamentals, consistent earnings, and sustainable dividend payments, has led to top performance.
Unlike some ETFs that focus purely on high yield, the Franklin Global Quality Dividend UCITS ETF aims for a balance of income and growth. This strategy often results in better risk-adjusted returns and more stable dividends.
Global Reach and Concentrated Portfolio
The Franklin Global Quality Dividend UCITS ETF invests in both emerging markets and developed markets, providing a truly global dividend exposure with an emphasis on high yield and quality. The ETF manages a more concentrated portfolio, with around 50 to 100 values, which could potentially lead to more attractive price increases.
Top Performers in the U.S. Market
Other top-performing global dividend ETFs often prioritize U.S. stocks, quality factors, or dividend growth. For example, the Schwab U.S. Dividend Equity ETF (SCHD), Vanguard High Dividend Yield ETF (VYM), and iShares Core High Dividend ETF (HDV) are highly rated for quality and dividend consistency.
Comparison with Vanguard FTSE All-World High Dividend Yield UCITS ETF
The Vanguard FTSE All-World High Dividend Yield UCITS ETF, while popular, tends to have a lower yield compared to some high-yield U.S.-focused ETFs. For truly global dividend exposure with emphasis on high yield and quality, more specialized ETFs or actively managed funds might outperform in total return or dividend stability.
Attractive Total Return
Despite the current dividend yield of 2.3% not being particularly high, the total return of the Franklin Global Quality Dividend UCITS ETF is attractive. This makes it a potential choice for income-oriented investors seeking to diversify their portfolios.
Success Story and Future Prospects
The Franklin Global Quality Dividend UCITS ETF has averaged an annual return of 9.3% over the past five years, making it a top-performing global dividend ETF. With its unique focus on quality and sustainability, and its global reach, the Franklin Global Quality Dividend UCITS ETF offers both attractive payments and opportunities for price increases.
As more investors discover the benefits of this ETF, there are opportunities for more attractive price increases if the past trend of the Franklin Global Quality Dividend UCITS ETF's performance continues. For those seeking a balance of income and growth in their dividend ETF investments, the Franklin Global Quality Dividend UCITS ETF is a strong contender.
[1] Yahoo Finance, 2021. [Accessed 15 March 2023]. [2] Morningstar, 2021. [Accessed 15 March 2023]. [3] Fidelity, 2021. [Accessed 15 March 2023].
This unique ETF, focusing on quality and sustainability in dividends, could potentially earn interest from investors seeking to diversify their personal-finance portfolios. As one invests, the income generated may stem from dividend payments and potential price increases (financing). This approach, differentiating from high-yield ETFs, might result in a balance of income and growth while minimizing risks (investing in a global-reach ETF with a concentrated portfolio).
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