Kyith in Investment Moats did a review of London listed Dividend ETF UDVD. As a Dividend lover, I am always on the lookout for good dividend ETFs. I had looked at UDVD but it honestly did not seem as good as the alternatives, including Vanguard's VHYD and iShares QDIV. The "requirement" that a company keeps on increasing its dividend seems to be a bit 'off' to me.
Google finance graphs, which don't do dividends reinvested, indicates that UDVD is the worst performing of the 3. In order to figure out what happens when dividends are reinvested, I turned to Claude Sonnet 4.6 set at High Effort. It confirmed that ranking in the basic Google finance chart that UDVD is the worst performing of the 3 dividend ETFs over 1, 3, 5, and 10 years.
However, it is important to point out that the divergence in performance appears to have occurred mainly in the last 3 years 2023-205, which illustrates the point that a 'strategy' works... until it doesn't.
The main reason I buy VHYD is for diversification. The second reason is dividends 😀Claude appears to agree (even if I tell it not to be too agreeable) that adding VHYD to VWRD diversifies the portfolio in terms of sectors and geography. Whether diversification is a good thing, is of course another question.
I am also investing in another dividend ETF WQDV and according to Google finance simple charts it also outperforms UDVD by a large amount. In fact it outperforms VHYD but that could be partly due to it holding more Tech than VHYD.
However, I have not included it in the comparison because it changed the index it follows twice in the time I have held it so its performance would have been affected by that, so not a good comparison. It changed to an ESG dividend index sometime back, but after ESG fell out of favour it changed to the current MSCI World High Dividend Yield Advanced Select Index (what a mouthful...).
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