I am considering exchanging some positions I have in some conservative allocation funds for some dividend ETF's. I have looked at some which have better 1 years returns, such as PEY, DVY, GCOW, SPYD, CDC, CDL, and DHS. Looking forward does it make sense to move from the 30-50% stock portfolio of conservative allocation funds to the ETF's? I already have a position in SCHD.
The dollars now invested in the CA funds probably would not be needed for 3-4 years. Any opinions on the move or the ETF'S being considered. PMEFX is the only CA Allocation fund I have that has held up well. It is now yielding 4.49% (according to Morningstar) and is about 15.5% of my total portfolio. If I was to move the other CA Allocation funds into it, the position would be 27% and I am not sure I am comfortable with that much in one position. Thank you for any comments.
I prefer 3 and 5 year numbers personally, especially returns vs category! I also look at Upside/Downside on 3 and 5yrs, SD, Beta, Yield (if any), Sector Allocation (usually a good indicator of the source of the outperformance), Concentration ...
As far as your hoices mentioned, I own SCHD as well so I'm not sure if you are asking to add another 'Value/Dividend ETF' in addition to that one?
There are reasons to be concerned about the bond portion of allocation funds given the rising rates. I'ld look into the duration of their bond holdings.
Not giving advice, just speaking for myself, but I hate to sell things that are currently in the red to buy things that are also in the red.
I do have cash to play with because I sometimes sell things that are in the black. I expect to be buying some in the near future, and it does include some of the dividend funds mentioned. I won't be pushing all in. I think the autumn could offer more opportunities. But I am cognizant that I missed a real opportunity on the COVID crash.
If you are interested in xUS dividend payers look into IHDG and FYLD.