Fidelity US Quality Income (FUSD) as core ETF?

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I’m torn between dividend investing and Bogle inspired passive investing.
The last chapter of this epic battle was this morning, when I compared VWRL with FUSD.

VWRL is the probably one of the oldest UCITS compliant distribution global tracker out there (since 2012), while FUSD is believed to be one of the closest UCITS equivalent to SCHD and DGRO, and has being around since 2017.

JustETF comparison tools show FUSD outperforming VWRL by a mile.

A bit surprised to see an income ETFs crashing and burning a global tracker.
Am I missing anything here?
Any thoughts?
Would you add FUSD as core position, alongside a FTSE all-world tracker?

I’ve just added FUSD to my watchlist.

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I’m not surprised a US only ETF full of growth stocks is outperforming an all world indiscriminate tracker.

All stocks in FUSD are dividend payers but it’d be criminal to classify them as “income stocks” or “dividend investing”

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Apple yields 0.43%, nvidia 0.03%, microsoft 0.8%. V and MA on that list are dividend aristocrats yet still yield less that 0.5% The overall ETF has a forward yield of 1.8%. Don’t get me wrong I love all these stocks and have all of them except apple but I would not say buying these stocks is “dividend investing”

Although there are several approaches to define what dividend investing is, this is not a fair or healthy comparison.

If you really feel the need to compare dividend investing vs a world tracker I’d advise comparing with

  1. an income ETF like VHYL
  2. a dividend growth engine model like NOBL (unsure if there is an EU version)

and make sure the comparison tool takes dividend payments into account.

I have not tested any of the above but “feels like” anything that’s not bat ■■■■ crazy will outperform a world tracker.

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The Income ETF is 100% USD companies, VWRP is global, so one just has the GBP/USD and USD stocks, and the rest global stocks.

Also the ticker that matches your fund/ISIN is FUSI I believe.

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No one can predict the future which is generally why most go with a global tracker.

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semi relevant but completely irrelevant side note, I’ve sold my entire PG holding this August, it was one of the oldest stocks I’ve purchased dating back to 1999 :slightly_frowning_face:

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Fair points around comparing apples with apples (pun intended), and the magic of the top holdings. I should have compared FUSD with VUSA, and FGQD with VWRL for starters.

The S&P 500 tracker spanks them all, not surprisingly. Not sure this will be true in 10-15 years from now, but this is a very different question.

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Thank you, both.

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