I have made a plan for the addition of ETFs. I think from my reading, the best thing to do is to have mostly high dividend ETFs and some growth ETFs. My starter plan is to have 6 dividend and one growth ETFs. But I want to make sure that the dividend ETFs have a variety of sector mixes. That way they are diversified through several different sets of stocks. I have made a few purchases that I am hoping will work out well.
XSHD INVESCO EXCH TRADED FD TR II S&P SMLCAP HIG
Most everything that I have been dealing with are large or mid cap stocks, and I saw this small cap ETF and figured that it would be a wide shift for me and a safer way than trying to find individual stocks. The indusry beakdown suited me too.
- Real Estate 49.78%
- Industrials 12.09%
- Utilities 11.63%
- Consumer Defensive 6.80%
- Basic Materials 5.41%
- Consumer Cyclical 4.80%
- Energy 3.65%
- Communication Services 3.37%
- Technology 1.57%
- Healthcare 0.90%
- Financial Services 0.00%
I liked this mix of industries with the high real estate and high in Utilities. I wish it had more healthcare, but that should be more in mid caps I think. It still seems to be the right kind of mix to me for a good starter.
DGRO ISHARES TRUST CORE DIVID GWTH
I found this one that is almost the opposite of the first one. High in financial and healthcare and low in real estate.
- Financial Services 20.90%
- Healthcare 17.42%
- Technology 17.36%
- Consumer Defensive 12.24%
- Industrials 11.02%
- Utilities 6.83%
- Consumer Cyclical 6.07%
- Energy 5.47%
- Basic Materials 2.52%
- Communication Services 0.16%
- Real Estate 0.02%
Between these two I feel pretty confident that the coverage in the different industries is complete. But there are still a few others.
HDV ISHARES CORE HIGH DIVIDEND ETF
This one pushes consumer defensive and energy to the top of the list.
- Consumer Defensive 27.84%
- Energy 23.90%
- Healthcare 17.13%
- Utilities 8.58%
- Consumer Cyclical 7.32%
- Technology 6.67%
- Financial Services 5.37%
- Industrials 2.25%
- Basic Materials 0.88%
- Communication Services 0.06%
- Real Estate 0.00%
I am searching for a good consumer defensive stock, and this EFT has a high level of those stocks as well as a good amount of Energy and Healthcare. I’ve actually started looking a bit more for good healthcare stocks.
SCHD SCHWAB US DIVIDEND EQUITY ETF
There is one stock that seems to come up in every conversation about dividend ETFs and that’s this one. It comes highly recommended by almost all analysts and so I figured it would be good.
- Energy 19.86%
- Consumer Defensive 18.44%
- Healthcare 16.19%
- Industrials 10.64%
- Consumer Cyclical 10.04%
- Financial Services 9.74%
- Technology 9.72%
- Communication Services 4.24%
- Basic Materials 1.09%
- Utilities 0.04%
- Real Estate 0.00%
Even though the top industry is Energy, the top stocks that are held are Bristol Meyers and Merck. I think that says something and I wanted to make sure that this was included in my ETF adventures.
SPYD SPDR SERIES TRUST STATE STREET PORTFOLIO S&P 500 HIGH DIVIDEND ETF
Another one that has a high appeal to me is this one from State Street. It follows the S&P 500 a little tighter than the other ones.
- Real Estate 21.59%
- Financial Services 17.00%
- Consumer Defensive 16.14%
- Utilities 13.48%
- Healthcare 9.41%
- Consumer Cyclical 7.35%
- Energy 6.76%
- Industrials 2.59%
- Communication Services 2.39%
- Basic Materials 2.15%
- Technology 1.13%
It keeps the Real Estate (high dividends) at the top with Fin Stocks and Defensive stocks next on the list. I don’t expect as much volitility for this one since technology is at the bottom of the list! If the big tech bubble actually does pop, then I am counting on this one to pull me through.
VOE VANGUARD MID-CAP VALUE INDEX FUND
This is my mid-cap choice to round out my diversity. I have small caps and mid-caps and large caps now. And this adds to my industry diversity too.
- Financial Services 17.45%
- Industrials 13.14%
- Utilities 11.39%
- Technology 11.17%
- Energy 9.51%
- Consumer Defensive 8.19%
- Healthcare 7.22%
- Consumer Cyclical 6.51%
- Real Estate 6.40%
- Basic Materials 6.36%
- Communication Services 2.64%
This one is also high in Industrials and Utilities which makes my mix of industries pretty much complete. Probably could use something with more Communication Services. But most of everything has been switched around with the choices I have made.
SCHG Schwab U.S. Large-Cap Growth ETF
Since all the other ETFs are basically High Dividend ETFs I needed to get something that leans more toward growth and of course that means high in technology. This one suited me.
- Technology 45.43%
- Communication Services 16.10%
- Consumer Cyclical 13.04%
- Healthcare 8.95%
- Financial Services 7.43%
- Industrials 4.92%
- Consumer Defensive 1.49%
- Basic Materials 1.23%
- Energy 0.54%
- Utilities 0.48%
- Real Estate 0.39%
So, with the 6 dividend ETFs and the one growth ETF I am happy with my EFT mix for a while. I may still find a stock or two to find but I am pretty happy with what I have now.
