Global high dividend ETF

Ciprico

Can anyone recommend one to research. 

I have about 20% in City of London,
20% in SWLD
10 % in VHYL
and the rest in gilts/MM
I am 61, retired, but not yet drawing any pension, and nervous of sequence of return risks, especially as global trackers contain so much of a handful of expensive US companies

I am over the old LTA, so growth is not so important, as I would be paying higher tax to access and won't get the 25% tax free element. (not overly concerned about inheritance)

I like the idea of dividend paying companies, as there is a likelyhood they will carry on paying (some) dividend in the event of a big crash, and like the idea of global diversification...

I understand in a SIPP growth and dividend can both be classed as income, but in a crash growth disappears and dividends should not.

VHYL has relatively expensive fees, so looking for an alternative.

I use HL, so ideally would be an ETF to avoid fees...

Any suggestions....?

GeoffTF

Ciprico said:

I understand in a SIPP growth and dividend can both be classed as income, but in a crash growth disappears and dividends should not.

In a serious crash, dividends are cut and companies suspend their dividends or go bust. The last really serious crash we had in this country was in the 1970s. Dividends certainly fell then. Companies often have high dividend yields because they are in trouble and their share price has fallen, but their dividends have not yet been cut. Those companies are particularly vulnerable in an economic crash. If you restrict yourself to high yielding shares, you reduce your diversification and increase your risk as a result.

tacpot12

IUKD is an option for High Dividend Equities, but it's solely focused on the UK. I have a large holding. My retirement portfolion is mainly focused on dividend paying Investment Trusts, and I too would be interested in a high yield global EFT but haven't identified one yet. 

The Investment Trusts did ok through the covid pandemic, continuing to pay dividends from reserves even when the dividend streams from the underlying equities were somewhat reduced.  

tichtich

I looked into this a while back, and the best I could find was GBDV:
https://www.ssga.com/uk/en_gb/intermediary/etfs/spdr-sp-global-dividend-aristocrats-ucits-etf-dist-zprg-gy

It has rather a high TER of 0.45%, and the current yield is only 3.76%. I didn't buy it.

cloud_dog

Re HL and looking (constraining yourself) to ETFs, have you considered simply moving to a fixed price provider such as Interactive Investor?

SIPP charge is £12.99pm.  There would be transaction charges, even for OEICs which HL do not charge for, but it would allow you to select investments appropriate to your requirements rather than looking at a more restrictive pool.