ReallyVeryFoolish wrote:A little related to a previous post I made in the IT/Funds section on IUKD. Does anyone have view on the above ETF? Taking City of London (yeah, apples v oranges etc....) as a benchmark, CITY and GBDV have the same yield yet GBDV has pretty much trounced CITY the last five years. The theme is a hands off dividend cash cow. IUKD falls short, GBDV has a world view and it seems to be beneficial versus the usual suspects strategy behind CITY.
No particular view, but, yes, it's apples vs oranges, and if one looks at the chart of GBDV since launch vs CTY, we can see that the vast majority of that "trouncing" is due to a particular event in June 2016 (yes, this is capital only) .... http://mediacharting.digitallook.com/cg ... dicator_3=
We can see from that chart that prior to June 2016 the two jiggled around each other, and from the following chart that they have done similarly so for the past 3 years. http://mediacharting.digitallook.com/cg ... dicator_3=
So, on that evidence it seems that GBDV vs CTY is a currency play, but as I say, I have no particular view, other than maybe asking what would be the harm in holding both, if they're your sort of thing. (I am curious though to note that GBDV's biggest exposure is to Canada at 21.38% vs USA 18.74% and UK 14.73%...)