Best value ETFs for long-term Investors

The best value ETFs for long-term Investors can be subjective or objective depending on how you break it down. In order to make this an objective analysis, I take a multifaceted approach at how I view what constitutes as the best value ETF.
Methodology for picking the best value ETF 1:22
MGV 4:15
SPYV 7:12
VOE 9:10
SCHV 10:29
VTV 11:45
Side by side comparison 18:20
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I'm not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. Some of the links above are affiliate links and come at no cost to you.
#DividendGrowthInvesting

[@DividendGrowthInvesting]

Which value ETF is your favorite?
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[@evankoehn5747]

When you showed the price return and total return, the S&P 500 showed the same return for both. To get the true the Total return for the S&P 500 I guess you need to use an etf ticker, and it would have out performed all of the value etfs.

[@martinguldner3990]

I chose SPDR® S&P® 1500 Value Tilt ETF to get US mid and small cap exposure. This ETF and SCHD are my largest holdings in my Roth IRA

[@pavXX]

Yep SCHD/DGRO as core.

[@DividendGrowthInvesting]

100%!!

[@CFH298]

Love this! Can you make an updated Roth IRA allocation video based on time horizons? I enjoyed your taxable allocation approach video.

[@DividendGrowthInvesting]

Happy to! Thanks for watching!

[@TortoiseInvesting]

I've been tempted to switch over to more ETFS than individual holdings to try and take a little worry off me when it comes to my investments.

[@DividendGrowthInvesting]

With the core and satellite approach you can find a good balance that fits your risk tolerance and goals. Nothing wrong with having more in high quality ETFs.

[@swissarmyknight4306]

I'm 90% stocks, 10% bonds; stocks are split between ETFs and individual stocks. Multiple ETFs and the other half is value plays on individual stocks. I sleep soundly at night and don't much worry about fluctuations.

[@JakeSpradlin2]

Jake, awesome video man! Like you said in the video, these ETFs can be great satellite positions for some people

[@BruceWayne-fx7wt]

Also would love to see an updated verson of the Dividend ETF Portfolio: How to invest based on your time horizon.. I am just now getting into investing and would love to see some possible changes or differences you would make between what you said in that to now a year later with a bit different market perspective!
Thanks again for the awesome videos! I am learning quite a bit

[@wuziwu8148]

Capital gains and share buybacks trump dividends over the long term for 3 reasons. 1) it’s better to have your money working for you 24/7 then sitting idle in a brokerage and 2) dividends get taxed at a higher marginal tax rate then dividends 3) A company/index can grow itself better by reinvesting in itself (hire new employees, build new facilities, etc) rather than the company paying a dividend. If it uses capital to do share buybacks then it can reduce supply, increase demand, increasing the share price.
There’s a reason Warren Buffets Berkshire Hathaway doesn’t pay dividends.

[@shanegreen1477]

Most misused nonsensical investing terms, growth investing or value investing. It's not one or the other. If you don't understand value you can overpay fir growth and most value investors are still looking at growth, it's not one or the other. Every Investment, let me repeat, EVERY Investment should be based on the present value on future cash flow.

[@1DansBlues]

It was interesting seeing the top industry holdings of each ETF. All the funds look like they could be a nice addition to one’s portfolio.
Now that bear I think I could out run him if he were chasing me. Definitely a well fed bear. Probably takes after Pooh bear and all that honey.
Another excellent video. Thanks for your insights.

[@DividendGrowthInvesting]

Lol I laughed so hard when I saw that. Hope you have a great week, dan!

[@wuziwu8148]

13:25
I’d rather have an equal weight index than market cap weighted. The top few holdings (FANG) are more likely to make a bubble and equal weight increases long term returns as it puts equal weight to small and large companies increasing risk and return over the long term albeit with more volatility

[@vitawater4259]

SCHD VIG and VGT work for me.

[@DividendGrowthInvesting]

VGT has been on fire this year!

[@hanswhite]

Hi Jake would love to hear your perspective about investing into royalty trust for passive income.

[@DividendGrowthInvesting]

I personally do not invest in royalty trusts, but I don't see anything wrong with having around 1-5% of your overall portfolio invested in them.

[@christianperalta3226]

What's your thought on the s&p1500, VLU etf?

[@DividendGrowthInvesting]

Interesting index focusing on valuation tilt. One to keep an eye on.

[@shahabfaramarzi1979]

Hey Jake, great vid and info.
I was wondering if you can help me/us with allocation portfolio. Here is mine I selected to invest in my IRA account:
#1- fundamental indexes- VOO
#2- dividend- SCHD, VYM, JEPI
#3- growth- SCHG, VUG, VGT, QQQM
Any thought how to allocate funds to these ETFs.
Thank you

[@DividendGrowthInvesting]

Consider replacing JEPI with DGRO. You don’t need JEPI until you actually retire - even in an IRA. You can add JEPI later.

[@shahabfaramarzi1979]

@@DividendGrowthInvesting sounds good, thank you.

[@Karmaghna]

A bit confused. You like SPYV because it has MORE overlap with VTI? I thought LESS overlap would be better for diversification purposes. I am assuming, however, that VTI is being held.

[@DividendGrowthInvesting]

During the video I talked about how in most cases, people would want to have more overlap with VTI. I did say that in some cases, it would make sense to have less overlap depending on the other positions in your portfolio. But for example, those who invest in SCHD/DGRO as their core would want more overlap with VTI to get more exposure to the overall market.

[@pamela7211]

Hi Jake…what are good index funds to live off the dividends IF already retired? Do you still say DGRO & SCHD? ☺️ I realize you aren’t a fund manager and these are just ‘suggestions’

[@DividendGrowthInvesting]

SCHD/DGRO as your core and adding high yielding ETFs like JEPI and JEPQ for income can be a great way to increase the portfolio yield if you are near retirement.

[@DividendGrowthInvesting]

I also like SPYD in a Roth IRA if you are retiring after 59.5

[@pamela7211]

@@DividendGrowthInvesting I’m real near retirement like I’m 65 and will be within a year. 😬. Is your suggestions still the same with that added info? 🥴

[@19Rinka86]

Jake, finally we’re getting a face reveal. was about time

[@DividendGrowthInvesting]

lol i'm a big big boy :P

[@Aki-wq6xh]

Love and appreciate this❤ thank you
Can’t agree it’s ‘interesting’ that SCHD pays more dividends tho as that’s what it’s for 😂
I do both - really reassuring to see this :)

[@DividendGrowthInvesting]

Glad it was helpful! Thanks for watching!

[@fabiGBOtown]

Hey Jake, just started the video, I expected your portfolio to be in the green cuz of your vgt position, was surprised to see it in the red a bit. Back to the video now :)

[@DividendGrowthInvesting]

I don’t own VGT in my taxable account in M1. 40% of my Roth IRA is in VGT and ya it’s doing pretty good :)

[@fabiGBOtown]

@@DividendGrowthInvesting ahh i see, im doing my asset LOCATION all wrong.. I hold vgt in my brokerage and dividends in my roth. Man, I need to get educated on this subject. I learn a lot from your videos but im always too late. Teach me senpaii lol

[@DividendGrowthInvesting]

@@fabiGBOtown Fabiano it all comes down to your overall goals and when you plan to live off the dividends. I would suggest writing down each account that you have and your strategy for each account. This will help you better understand your strategy. There is no one size fits all.

[@fabiGBOtown]

@@DividendGrowthInvesting I know Jake, you say that all the time in your videos and I should technically know it but im in a weird spot because unless a disaster happens, ive been basically retired for the past 2 years. Like you were saying in your last video that you wanted to spend more time with the older family members, I got that now as well. My goal is to grow my extra income (residual) as much as I can for 14 to 16 years, I don't have a plan to spend it, I guess I could travel but I already do that. It's complicated, bottom line is I appreciate you always responding to the comments because I don't have anyone interested in this to talk to in my circle.

[@BebitoFriFri]

Hi Jake, why not include small cap value ETFs? Historically small cap value has outperformed almost everything

[@DividendGrowthInvesting]

VB and VOE have done pretty much the same in terms of total returns. I like large/mid cap a bit more but can see why someone would want small cap exposure.

[@Asstronauts93]

No vig vym schd or dgro

[@davdride4850]

Cool

[@19Rinka86]

bog boi, big big boi

[@DividendGrowthInvesting]

lol omg