AU/Global/REIT ETFs 5-Year Comparison
AU-ETFs-Comparison-5Y [AU ETFs]
We have compared the correlation on A200 with GEAR, IHD, SYI, and RDV for the 5-Year period. Our analysis is to determine the highest correlation to the A200 and remove it from our holdings. Based on our results, SYI is a nice blend to both IHD and RDV. SYI has DY of 15%, and both IHD and RDV both have DY 6.6% and 6.5% respectively. We will be removing IHD and RDV from our target % allocations and sell our holdings after we receive the quarterly distributions, and then reallocate to cash as we prefer not to increase our SYI to more than 12.5%.
Global ETFs Comparison (5Y) [Global ETFs]
We have compared the correlation and performance on A200 with AGX1, HACK, PIXX, WXOZ, and TECH for the 5-Year period. Our analysis is to remove the holding that has underperformed the A200 ETF for a long duration of the 5-Year period. Although AGX1 has underperformed, there were certain periods when AGX1 was performing better than A200. PIXX, however, has underperformed for a longer duration. When comparing both AGX1 and PIXX DY%, AGX1 is DY% of 16% and PIXX is 10.5%. If we now compare the 52WH/52WL, AGX1 is -11% and PIXX is -3%. That means PIXX is trading at a higher premium even though it has underperformed the A200. Based on our analysis, we will be removing PIXX from our target % allocations and reallocate to cash for now as AGX1 is already set target at 12.5%.
REIT ETFs Comparison (5Y) [REIT ETFs]
We have compared the correlation and performance on VAP with MVA, SLF, and DJRE for the 5-Year period. Our analysis is to remove the holding that has high correlation as well as underperforming the VAP ETF for a long duration of the 5-Year period. Both SLF and DJRE have underperformed. When comparing the DY%, SLF has DY% of 6.9%, and DJRE of 6.3%. Both SLF and DJRE are both trading under -15% of their 52WH. However, SLF looks to be correlated with VAP, but with a higher magnitude, while DJRE isn’t too far from VAP’s performance. Based on our analysis, we will be removing SLF from our target % allocations and reallocate +2.5% each to both VAP and DJRE, increasing their target % allocations from 5%-to-7.5%.
