International exposure

[Pizza]

I want to make a long term investment with international exposure. 

 

The CoreShares Global Dividend ETF looks attractive to me. Is this a good time to enter or has it run too hard already? 

 

Any views, opinions will be appreciated.

[Bandit]

Is it a long term investment? In that case there is no real point in worrying about it having "run too hard" already.

 

Long story short - GLODIV is focussed on income producing stocks with a side effect of it's selection criteria being that they are more likely to be quality stocks. A combination of STXWDM and STXEMG gives you growth focussed stocks in both the developed world and emerging markets.

 

What you may want to look at is ASHGEQ. It is already diversified between the developed world, emerging markets and others and basically the only offshore ETF you need if you want to buy everything in the world

[Pizza]

Is it a long term investment? In that case there is no real point in worrying about it having "run too hard" already.

 

Long story short - GLODIV is focussed on income producing stocks with a side effect of it's selection criteria being that they are more likely to be quality stocks. A combination of STXWDM and STXEMG gives you growth focussed stocks in both the developed world and emerging markets.

 

What you may want to look at is ASHGEQ. It is already diversified between the developed world, emerging markets and others and basically the only offshore ETF you need if you want to buy everything in the world

 

Thanks Bandit

 

My departure point is to establish some form of income flow from international companies and that is why I focused on GLODIV. 

 

I do not know however if the dividends declared by GLODIV will necessarily be higher than ASHGEQ.

I also don't know if GLODIV will change companies if different ones come along who pay better dividends or how regularly they will do that.

 

Capital growth is obviously also a consideration but my primary consideration is income flow.

[Bandit]

 

Thanks Bandit

 

My departure point is to establish some form of income flow from international companies and that is why I focused on GLODIV. 

 

I do not know however if the dividends declared by GLODIV will necessarily be higher than ASHGEQ.

I also don't know if GLODIV will change companies if different ones come along who pay better dividends or how regularly they will do that.

 

Capital growth is obviously also a consideration but my primary consideration is income flow.

 

Nothing is 100% certain but the chances of ASHGEQ producing better income than GLODIV is highly unlikely.

 

If you read up on the index GLODIV tracks it'll provide you with some insight. Where our local DIVTRX checks a company's 5 year history, GLODIV goes back 10 years within the S&P500. I speak under correction but I think it rebalances once a year but reevaluates the existing constituents every six months.

 

More info: https://eu.spindices.com/indices/strategy/sp-global-dividend-aristocrats?geographicalregion=europe&compliancelevel=esma

[SaurusDNA]

You might also want to have a look at the ETFSA global basket:

http://www.etfsa.co.za/Factsheets/taxfree/ETFIA-Factsheet%20International-Mar18.pdf

 

Their ideal split for a global portfolio is:

STXWDM: 30%

STXEMG: 30%

GLODIV: 20%

GLPROP: 20%

 

I personally also prefer income to growth so my personal current global portfolio has 33% GLODIV. I do believe as far as income goes it will outperform other global ETFs. I agree with Bandit that ASHGEQ is all about growth rather than income. For long term income, GLODIV is almost certainly better.

[Pizza]

 

Nothing is 100% certain but the chances of ASHGEQ producing better income than GLODIV is highly unlikely.

 

If you read up on the index GLODIV tracks it'll provide you with some insight. Where our local DIVTRX checks a company's 5 year history, GLODIV goes back 10 years within the S&P500. I speak under correction but I think it rebalances once a year but reevaluates the existing constituents every six months.

 

More info: https://eu.spindices.com/indices/strategy/sp-global-dividend-aristocrats?geographicalregion=europe&compliancelevel=esma

 

Thanks Bandit

 

I am going to get some GLODIV now and perhaps stock up on ASHGEQ during the second half of the year.

[Pizza]

You might also want to have a look at the ETFSA global basket:

http://www.etfsa.co.za/Factsheets/taxfree/ETFIA-Factsheet%20International-Mar18.pdf

 

Their ideal split for a global portfolio is:

STXWDM: 30%

STXEMG: 30%

GLODIV: 20%

GLPROP: 20%

 

I personally also prefer income to growth so my personal current global portfolio has 33% GLODIV. I do believe as far as income goes it will outperform other global ETFs. I agree with Bandit that ASHGEQ is all about growth rather than income. For long term income, GLODIV is almost certainly better.

Thanks SaurusDNA

 

I will definitely have a look.