Many Seeking Alpha readers are dividend advocates so I put together a portfolio built around high yield ETFs. Readers can find this Rutherford 10” portfolio. Once more, the Rutherford 10 comes out on top. Why is the Rutherford 10 so difficult to top when it comes to performance, low volatility, and probability of beating the VTTVX benchmark?. I asked Ernie Stokely to back-test the performance and volatility of this dividend oriented portfolio to see how it compared to the “
If I recall correctly, the Rutherford 10 was put together using a combination of theand .
Dividend Correlated ETFs
Below are the correlation clusters of the dividend portfolio. As I look over this group of ETFs, many I counted on to produce return are highly correlated. I’m referring to these ETFs. [VTI, VYM, DVY, and IDV]
Rutherford 10 ETFs
For comparison, the correlation clusters for the Rutherford are shown below. From looking at these two sets of data it is not obvious why the Rutherford 10 performs better than the Dividend Portfolio. While there is overlap in a few ETFs, DBC and GLD, two low correlated ETFs, are missing from the Dividend Portfolio. Might those two missing ETFs make a difference?