I have long mused that at some point at or during retirement, it might be a reasonable strategy to just lump everything into VHYL
and live off the dividends/distributions, currently around 3.26% - supplemented by the odd sale if needed. Going down that line of thought means also considering alternatives - either to avoid single counterparty risk, or because they may simply be better. This led me to the following page on JustETF
What one is looking for specifically is in the eye of the beholder, but for me, TDGB (yield currently around 4.64%) caught my eye
A slightly different investment universe and remit, better performance over time and higher charges (0.38% vs 0.29%). If I had to go tomorrow (I don't) all things being equal, I might go all in 50% VHYL and 50% TDGB (composite yield c3.95%). Very close to the magical 4% yield at current prices with reasonable prospects of capital gain and reduced counterparty risk - fire and forget in most scenarios.
Thoughts on TDGB welcome, either standalone or as part of a strategy like the above?
It also has a different domicile (the Netherlands vs Ireland). I'd be interested if anyone has a view on this, e.g. considering if
- Tax-sheltered, or
Non tax-sheltered, or
Any factor other than tax status of the wrapper?
One related final question. If ETF's outside of a tax wrapper are problematic, what would be the nearest equivalent option which makes sense? For example, are we back to a choice of Global Equity Income Investment Trusts?
Regards, Newroad