3/31/1993: the earliest date that VDIGX had a price.
See more detailed year by year comparison >>
- They have better risk adjusted returns or Sharpe ratio. This is because with regularly paying dividend streams, dividend funds are more steady in terms of their total returns. This is evident in the above table, in fact, for both the last 5, 10 years and since 3/31/1993.
Furthermore, when a portfolio is constructed with dividend funds instead of general stock funds, the portfolio usually has better risk adjusted returns (Sharpe ratio). This is obvious for a Strategic Asset Allocation based portfolio, but it is also true for Tactical Asset Allocation. The intuition behind this is that dividend funds exhibit more stable trend than broad base index funds, mostly due to their steadier returns.
The following shows how the model portfolios of Retirement Income ETFs (a plan consisting of mainly dividend paying stock funds and various bond funds) have compared with their counter parts in the other two plans:
Portfolio Performance Comparison (as of 2/15/2013)
| Ticker/Portfolio Name | 1 Week Return* | YTD Return** | 1Yr AR | 1Yr Sharpe | 3Yr AR | 3Yr Sharpe | 5Yr AR | 5Yr Sharpe | 10Yr AR | 10Yr Sharpe |
|---|---|---|---|---|---|---|---|---|---|---|
| MyPlanIQ Diversified Core Allocation ETF Plan Strategic Asset Allocation – Optimal Moderate | 0.0% | 2.4% | 8.3% | 108.1% | 10.9% | 96.5% | 6.4% | 40.0% | 9.8% | 69.0% |
| MyPlanIQ Diversified Core Allocation ETF Plan Tactical Asset Allocation Moderate | 0.0% | 1.7% | 10.3% | 158.5% | 9.2% | 91.0% | 7.9% | 73.2% | 10.7% | 94.1% |
| Retirement Income ETFs Strategic Asset Allocation – Optimal Moderate | 0.1% | 2.2% | 9.9% | 148.8% | 11.4% | 114.0% | 6.5% | 40.8% | 8.1% | 57.6% |
| Retirement Income ETFs Tactical Asset Allocation Moderate | 0.3% | 1.9% | 8.3% | 134.7% | 11.9% | 122.4% | 7.8% | 72.2% | 11.7% | 99.9% |
| Six Core Asset ETFs Strategic Asset Allocation – Optimal Moderate | -0.0% | 2.2% | 7.8% | 99.2% | 9.6% | 82.8% | 4.6% | 26.3% | 7.5% | 48.2% |
| Six Core Asset ETFs Tactical Asset Allocation Moderate | -0.0% | 0.9% | 6.8% | 118.9% | 7.3% | 72.3% | 7.3% | 67.3% | 10.4% | 86.8% |
*: NOT annualized
Please login or register an account to view the newsletter
Diversified Asset Allocation Portfolios For Your Plans
