The FTSE All-World High Dividend Yield (VHYL) holds over 1000 higher yielding large and mid-cap companies listed all around the world. The largest weighting of 37% is USA followed by UK 12.3%, Switzerland 6.3%, Australia 4.7% - also France, Canada, Germany, Japan, China and Brazil.
Top 10 holdings are Exxon Mobil, Microsoft, Johnson & Johnson, General Electric, Nestle, JP Morgan Chase, Novartis, Procter & Gamble, Pfizer and Roche.
As with funds, all income is distributed so can be lumpy and unpredictable. For example, during the year to end June 2014, the distribution was $194.63 whereas over the past year the distribution has reduced to just $156.60 - that's just under 20% less in dollar terms. Unlike my investment trusts, I am never quite sure what income to expect at the end of each quarter - also there are FX considerations as the dollar distribution is converted to GB pounds. The current yield is 3.2%. The annual costs are very competitive at just 0.29% TER.
My original purchase price in June 2013 was £31.60 and earlier this year I topped up my holding giving an average price of £33.00. Annualised returns for the 2 yrs to end May 2015 are 6% p.a.
One advantage of holding this ETF within my Sippdeal ISA is the avoidance of the 0.20% per annum custody fee levied on Vanguard funds. Also, there is no 0.5% stamp duty to pay on purchase.
In my original post, I suggested it would be interesting to see how a passive global income index tracker compared with a managed global investment trust like Murray International. The answer so far is - very favourably!
|2 yr chart VHYL v Murray Intl.|
(click to enlarge)
Lets hope Bruce Stout can turn things around over the coming year or two!
It will be interesting to see how the income distributions and total returns play out over time compared to some of my investment trusts. I am also interested to see how this ETF compares to my recently acquired equity/bond Vanguard LifeStrategy.