Arborbridge wrote:I thought there would be an index fund which paid out the yield as a dividend. Are you saying there are non which do that and that you must slice off the equivalent yield as you need it?
I've never looked into index or trackers for this purpose before, so excuse my ignorance.
Ummm....well (without actually counting) I'd say that most index trackers pay out the yield as a dividend. For example, and perhaps most mundanely, iShares FTSE 100 ETF, ISF, does and is currently yielding 4.15% (trailing 12 month), and I'm a little surprised at your last comment 'cos, unless my memory fails me, I thought you'd invested (in the past at least) in some of the custom index trackers, like IUKD and the aristocrats, IIRC.
The more challenging aspect of your request is the 'will outperform the "usual suspects"' , although you don't define what you mean by "outperform" (capital, yield, income, TR?) or "usual suspects"...