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Hopperkuh's avatar

I agree SCHWD is great! What do you think of VYM? I also looked at the backtesting numbers -->

https://portfoliometrics.net/shared/e7428ca1-d05d-4f49-8306-4dda94cb0ad5 it seems like SCHWD is still a bit better in my opinion. But VYM should be more diversified. Is this less important to you than return and why?

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ETF Focus's avatar

I'll be honest, I'm not a big fan of VYM. Mostly because of its security selection strategy. It's too broad. Taking the 50% of companies from a broad equity index I suppose qualifies as a high yield strategy, but I prefer something a little more targeted or is coupled with a quality screen or something like that.

Historical returns I find to be modestly useful. If you're comparing actively-managed funds, then historical returns can help judge manager effectiveness. Since most ETFs are passively following an index, it's less helpful. I tend to look at expenses/fees, index construction and risk above all else.

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