Tag: t_alt2SPY

div-ETF | SPHD^SPYD

Posted on by tiger40490
  • criteria: Need pre-clear? Exempted due to 20+ constituents.
  • criteria: below $40 to support small limit order
  • criteria: SEC yield > 4%. SPYD is 4%; SPHD is 4.2%
  • expRatio: SPHD is 0.30; SPYD is excellent at 0.07

— SPHD tracks a dividend-yield-weighted index comprising the 50 least volatile names chosen from a shortlist of the S&P 500’s 75 highest-dividend-yielding securities.

Good experience as of Oct 2024.

— SPYD tracks an index of the 80 highest-yielding stocks selected from the S&P 500. 

Good experience as of Oct 2024.

RSP 2% # compare2curves@yahoo

Posted on by tiger40490
  • 1.5-2% CDY, better than SP500
  • https://www.marketwatch.com/story/long-term-investors-can-beat-the-sp-500-by-favoring-equal-weighted-etfs-2018-09-26
  • https://einvestingforbeginners.com/equal-weight-sp-500-etf-ansh/ (one person’s view) suggests the RSP is no worse than SPY , partly thanks to DYOC.
  • yahoo finance chart shows RSP beating SP500 even without dividend factored in ! I think this happens only over longer term.
  • .. After 20 experiments, I think the comparison chart lets us drag to select an arbitrary starting date. On that date the two curves start at the same 100% level, and start to drift apart. The chart then shows something like “RSP is currently 93% of starting level, whereas SP500 is 92% of starting level”
  • .. Is there a more reliable data source than Yahoo finance?
  • I think many of my passive investments [401k, AIA, TRBCX] already track the sp500, so I would prefer to diversify to an EWI fund.

— minor factors

  • momentum .. with equal-weight ETFs, there is “kind of an anti-momentum dynamic that is present because every quarter you’re kind of cutting back what has risen a lot and adding to what has lagged,” he added. “The trouble with market-cap-weighted [indices] longer term is you ride the momentum up. But there is no mechanism to kick those stocks out again. So, you ride them down.” That is why standard indexes may outperform equal-weight ETFs in the short run
  • historical (and future) performance .. I guess in a bull run lead by a few large stocks, EWI would underperform, as in the last few years.
  • concentration risk .. is better with the more diversified EWI. See https://www.investopedia.com/articles/exchangetradedfunds/08/market-equal-weight.asp . I think about 1/5 value of SP500 are the top 5 tech stocks which are badly correlated. Some investors embrace concentration on 5 tech superstars, because they don’t like holding laggards, but historically, the EWI has not really underperformed the highly concentrated SP500
  • volatility .. might be worse with the highly concentrated sp500, esp. during a sector crash. On the other hand, small-caps tend to be more volatile

j4 alternative ETF to SPY

Posted on by tiger40490

Background: I already have many (invisible) positions closely tracking the SP500.

In speed up: riskCapital4U.S.eq 20k #Aaron I explained the need(?? or unwanted peer pressure) to speed up my risk capital build-up. If I have not decided to allocate to a sector, but want to increase my exposure to the broad U.S. market as a whole,  then there are a few alternatives to the SPY ETF.

  • 80% chance I may realize that an “alternative” is very similar to SPY, not a real alternative. The buying decision was therefore misguided. The financial impact is likely small, so the tcost incurred was really for learning.
  • 20% chance that I may find something worthwhile in these alternative ETFs
  • tiny risk that the returns on these ETFs are really inferior to SPY. I take it as a market risk and learning lesson.

VTI: buyEntireUsaMkt

Posted on by tiger40490
  • 🙂 0.03% expRatio about 1/3 of SPY’s
  • https://investor.vanguard.com/etf/profile/vti
  • big quantum. need fractional
  • 1.34% CDY, comparable to SPY
  • 3640 stocks. VTI holds no Amex and OTC* stocks.
  • tech sector is 27% of the target index. top 10 holdings are mostly tech stocks
  • About 90% of VTI is concentrated in the SP500. The remaining allocation is mid/small caps. Therefore more growth, more volatility than SPY

To my surprise, VTI can outperforms SPY slightly

SeekingAlpha says compared to SPY, VTI is more suited to buy-n-hold long-term investors

USD2500 invested] TRBCX #T-RowePrice fund

Posted on by tiger40490
  • 🙂 no load
  • 🙂 no trailer fee, so I can hold a long time
  • 🙂 pays dividends
  • 🙂 $100 subsequent top-up
  • 🙂 same manager since inception
  • 🙂 expRatio 0.7%
  • AUM 100B, bigger than all ARK* funds combined

This fund has four tickers for four “share classes”. My share class (“Investor class”) is the most common and the first share class offered.

— performance

  • 12% = the average annual returns (not compound return) since inception 1993
  • 🙂 Fund outperformed the index for most of the last 5 years.

To my surprise, after losing 42.62% of value in 2008, this fund gained 42.57% in 2009. https://money.stackexchange.com/questions/12706/help-me-understand-the-oddity-of-percentage-gains-and-losses shows that over these 24 months your $100 would become $81.80. Subsequently it rose for a few years, easily recovering by 2011, much faster than most stock markets.