We took the effort to compare Durig Dogs of the Dow to the Elements Dogs of the Dow. Now we have completed three years in which two years were very good and 2020 which was one of the worst we can recall. We question if we have ever seen a rough total environment in our personal lifetimes like the market so far this year. So in good and bad years, how did Durig Dogs of the Dow stack up to its closest competitor?
Let’s look at the benchmarked first year to date:
Durig Dogs of the Dow: Down 9.97%
Elements Dogs of the Dow: Down 14.43%
*Durig Dogs of the Dow did 44% better in 2020– that was a tough year, so the much higher return was a surprise even to us.
Durig Dogs of the Dow: Down 8.87%
Elements Dogs of the Dow: Down 12.83%
*Durig Dogs of the Dow again at around a 44% difference, which is material for investors.
Durig Dogs of the dow: Up 8.97%
Elements Dogs of the dow: Up 5.03%
*Durig Dogs of the Dow gave a 78% higher return over 3 years. That is basically a shockingly outperformance when compared to its very closest comparable fund.
Durig Dogs of the Dow: .50
Elements Dogs of the Dow: .75
Durig Dogs of the Dow: 5.06%
Estimate Elements Dogs of the Dow: 4.19 %
Durig Dogs of the Dow 3 year performance, verus income benchmarks:
Durig Dogs has provided, over time, a superior yielding Year-to-date, 1 Year, and 3 Year track record along with being a low cost, and better tax accounting portfolio compared to the traditional Elements Dogs of the Dow. With that said, we must claim that past performance provides no guarantees for expected future returns.
Why at almost every level has Durig’s Dogs of the Dow out performed in returns compared to the Elements Dogs of the Dow?
We believe it has four individual portfolio enhancements that have improved the returns and together increased the returns significantly over time.
This should only add about a quarter percent into the portfolio. This lower cost helps, but over time this alone did not make a significant difference.
This is probably the single largest factor; the high income dogs are weighted larger than the lower dividend Dogs, this almost always allows for more income.
This appears to also help. The better income positions are rebalanced at the end of every quarter making this a more responsive portfolio to market changes. This seems to have made a dramatic difference during the 2020 downturn.
No Cost Trading:
Since the Elements are owned by Bank Of America, we can only assume that they charge themselves commissions but we could not identify this after reviewing multiple documents. This was not disclosed openly.
You can also review Dogs of the S&P, our top performing Dogs of Canada, and Dogs of the Europe. All four dogs have the four above portfolio enhancements of Low Cost, Dynamic Weighting, Quarterly Rebalancing, and No Trading Cost. Not to mention more accurate accounting in segregated accounts. We believe that our approach significantly increases the probability of high returns. The Durig Dogs are also more focused, and even though they performed very well during the 2020 pandemic, causing selloffs compared to their peers, this higher level of concentration could possibly increase principle risk.
Even though both are tracking below the overall Dow, the Dow’s current performance is based on a selected few technology companies (not paying any dividend or a very small one). These companies have greatly changed the Dow’s returns. Based on income investment we believe Durig Dogs of the Dow has been doing very well compared to their peers.
We realize many could do Dogs of the Dow investments on your own. However, at Durig we are able to utilize the most updated tools and trading, which we believe has not only delivered a significantly higher return than most people and funds would achieve on their own, but it reduces your workload and stress, while providing a superior taxed accounting compared to the Element funds.
For those seeking a Dogs of the Dow portfolio, we believe we have demonstrated (with significantly higher returns over time) that we have a superior program for Dogs of the Dow investors. Investing with Durig means you could possibly make much more over time, while doing less work. We want to help you enjoy the fruits of your well-earned leisure time while your money works harder for you.
What Durig’s Dogs of the Dow Provides to Simplify the Investment Process:
We work with the leading US low cost platform of Charles Schwab as our primary custodian.
We provide the highly preferred e-document services, providing all simplified paperwork completely with you signature though one simple email.
We hope to make the whole, even online, investment process simple and easy, with very low overall cost– and today often with zero trading fees. All of this effort is designed to provide a superior resource for value income clients.
All of this effort is designed to provide a superior fiduciary resource for our value income clients. So if you need to generate more income, simply give us a call or email.
We offer our successful investment strategies of Fixed Income 2 (FX2) Portfolio, Dividend Aristocrats, the Income Aristocrats Portfolio along with our many Dogs Portfolios to other Charles Schwab Registered Investment Advisors through segregated accounts.