RetireJapan

(9434) vs (9984)

Wow! I had no idea. Thank you for that.

Getting back to your point about concentration risk though, I struggle with this myself, as my employer is one of the companies on that list, and I've been buying via the employee stock purchase plan for close to a decade now. This one stock is now taking up 20% of my portfolio, but the milk of the dividend teat has so good I've been loathe to sell, despite knowing better about portfolio concentration risk.

Everyone has their own risk tolerance. It is one thing to be overweight a single sector, another to be overweight a specific country, and an entirely more risky proposition to be overweight a single company.

There are some great overviews of dividend pay ETFs here. https://shintaro-money.com/?s=high-dividend+&x=38&y=19

...

That being said I am always open to new approaches and learning new strategies for investing. I recently started looking at adding some REIT concentration with this Emaxis Developed REIT fund. No domestic REITs though.

https://www.rakuten-sec.co.jp/web/fund/ ... 0C000JD31

Kanto wrote: ↑Mon Mar 22, 2021 9:55 am
Betting on single Japanese companies seems a bit risky, especially considering the attraction of dividend investing is safe and consistent income in retirement.

Absolutely true.
However, the trading companies and banks have pretty solid records of paying dividends for years, and they aren't really going anywhere.
Could say the same for the likes of NTT and Toyota, Denso. But of course, look what happened at Nissan...

This should absolutely not be the major investment strategy for someone planning for retirement. Go with the global funds or S&P funds for the main strategy.

I came across this ticker today SPHD, high dividend, low volatility. I haven’t had time to understand how the re-weighting works as it’s limited to about 50 stocks and you could be trapped in sectors. Pretty high yield in today’s terms and theoretically should remain high considering the prospectus. One more idea.

Ax6isB wrote: ↑Wed Mar 31, 2021 9:59 am I came across this ticker today SPHD, ...

Let's see if I can attach some things, and this is a first for me on this board.

Click on any of these to get a bigger version.

One more:

A lot of my ETF shopping prioritizes morningstar ratings--or starts with ETFs that are on par w/respect to that. Here, tho SPHD has better yield, it would not be my choice. It does have more utilities, so probably some numbers like std deviation, mean, are different.

Some other numbers on the right in these:

captainspoke wrote: ↑Wed Mar 31, 2021 11:10 am A lot of my ETF shopping prioritizes morningstar ratings--or starts with ETFs that are on par w/respect to that. Here, tho SPHD has better yield, it would not be my choice. It does have more utilities, so probably some numbers like std deviation, mean, are different.

Some other numbers on the right in these:

Thank you for the comparison.
The performance difference didn’t surprise me too much due to last years crash and boom. I would think that a low volitility fund would do ok but not thrive in the recovery. So I compared them prior to last year and found there’s still significantly different performance except for a few occasions. So less volitility but less performance over the last 5+ years. I’d have to do real math to include the difference in the dividend payments over that period to have a more accurate comparison.
Having said that, it doesn’t look like either would be a bad addition to anyones portfolio.

The discussion on low volatility funds reminds me that there has been some debate recently on whether these work well. "Low vol" is a factor that was supposed to outperform especially during crises but some are questioning that now:

https://www.institutionalinvestor.com/a ... n-Practice
https://investors-corner.bnpparibas-am. ... -covid-19/
https://www.robeco.com/media/3/1/1/3119 ... -27998.pdf

TokyoWart wrote: ↑Fri Apr 02, 2021 2:59 am The discussion on low volatility funds reminds me that there has been some debate recently on whether these work well. "Low vol" is a factor that was supposed to outperform especially during crises but some are questioning that now:

https://www.institutionalinvestor.com/a ... n-Practice
https://investors-corner.bnpparibas-am. ... -covid-19/
https://www.robeco.com/media/3/1/1/3119 ... -27998.pdf

I think the one thing about low volatility is that it can help manage the investor. It’s commonly quoted, but I can’t confirm, that people sell at the bottom and buy at the top. A low volatility investment can help manage investor psychology. It’s easy to look at charts and say this and that but psychology and emotion have a part in investing too. Someone probably has an emotional quotient that tracks along with prices. Maybe that’s volume.

I would have benefited from this type of investment when I got started in order to keep me in the market vs jumping in and out. And in and out again. Financially, I would have benefited much more from the other IF I put my money in and left it