Talk of The Villages Florida - View Single Post - High Dividend Equity Funds - Diversification, Growth and Dividends
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Old 06-23-2023, 07:40 AM
CoachKandSportsguy CoachKandSportsguy is offline
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Quote:
Originally Posted by retiredguy123 View Post
By comparison, the Vanguard S&P 500 index mutual fund has 3, 5, and 10-year returns of 12.88%, 10.98%, and 11.95%.
And dividend yield comparison?
and maximum draw down comparison?

Sort of an orapple comparison. .

SP500 is a broad large cap fund.
High dividend equity fund is a sector index for a portfolio construction for specific risk tolerances and desired outcomes.

Lets say you want a 60/40 portfolio, 60% equities, 40% bonds. . the risk parity portfolio, where bonds and equities go in the opposite directions, is a long term portfolio, optimized for 40 years of falling or stable macro environments.

For the aged, 60/40 or SP500 portfolio is too risky due to loss of low correlation under certain conditions and excessive higher risk equity exposure.

Trading the equity portion of the equity / bond portfolio mix to SCHD offers a better portfolio outcome with more income/cash for taxable portfolio withdrawals with lower tax implications. . and the 60% should be reduced to 40% or so anyway. .

single annualized return for customized portfolio construction is no where near sufficient for best results using other metrics. .