The Index Funds Challenge

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Nomad
Posts: 332
Joined: Wed May 16, 2018 5:23 pm
Location: UK

Re: The Index Funds Challenge

Post by Nomad »

Ok, lets go again. on a new thread, this is getting confusing - but if we void the challenge using the VEU index tracker, then it is still
3 victories to active over passive.
Last edited by Nomad on Tue Jun 02, 2020 4:56 am, edited 4 times in total.

Seppia
Posts: 1484
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Re: The Index Funds Challenge

Post by Seppia »

Yahoo finance among many others has all the data.
It’s your thread though, so you’re welcome remove VEUR data from this experiment.
Just don’t keep tracking something that’s incorrect as it may be misleading to first time followers.

Nomad
Posts: 332
Joined: Wed May 16, 2018 5:23 pm
Location: UK

Re: The Index Funds Challenge

Post by Nomad »

Seppia wrote:
Tue Jun 02, 2020 1:56 am
Yahoo finance among many others has all the data.
It’s your thread though, so you’re welcome remove VEUR data from this experiment.
Just don’t keep tracking something that’s incorrect as it may be misleading to first time followers.
Ok, I have checked the dividend payout of VEUR. Per year it is about 0.85% - not even one percent.
Note, that I ignored the dividend payout of Lindsell Train Global Equity Income which is 1.1%.
So the index funds are still faring very,very badly.

I think the reason is index funds by definition are exposed to consumer cyclical, tourism, banks etc.

I will do a new update soon but when the difference between the active/passive exceeds 10% - I will stop.

Seppia
Posts: 1484
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Re: The Index Funds Challenge

Post by Seppia »

I don't know where you're getting your numbers.
VEUR has yielded, on today's closing price, 3,65% in the last 12 months
https://finance.yahoo.com/quote/VEUR.AS ... equency=1d

Again if it's too complicated just remove Veur from the challenge.

Nomad
Posts: 332
Joined: Wed May 16, 2018 5:23 pm
Location: UK

Re: The Index Funds Challenge

Post by Nomad »

RE: VEU
The yiend information for VEU ETF, I was using was from here:
https://investor.vanguard.com/etf/profi ... utions/veu

I think I was only using the first two numbers when I said the yield was less than one percent, I didn't realise they were quarterly.
So we can now incorporate the figures and to accomodate distributions accurately.

At the start VEU cost $50.61 = £40.58 ( and it has now paid out 4 quarterly dividends per share.
$0.3237, $0.5814, $0.1177, $0.2538 = $1.2802 (total distributions)
Last price is $48.23
$48.23 + $1.2028 = $49.4328 = £39.60 (todays exchange rate).
So it is currently at 97.6% of what is was or a drop of -2.4%.

The active funds have done as follows:
Fidelity European Class W was £17.91 today £18.91, up 5.58%
Lindsell Train UK Equity was £1.9954, now £1.8572, down -6.93%
Lindsell Train Japan Equity (income) was £2.8045, now £3.1144, up 11.05%
First State Greater China Growth was £10.1758, now £11.002, up 8.05%
average = up +4.46%

So at present, the active funds are 6.86% ahead of the VEU ETF even when incorporating dividend distributions.

We should probably finish the challenege exactly 1 calendar year after the start e.g. 18th September 2020 in order to allow for dividend distributions.

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