ADDENDUM: The ETF Monkey 2016 Model Portfolio Q3 Update

On October 5, I published the Q3 update for The ETF Monkey 2016 Model Portfolio on Seeking Alpha.

In that article I noted that, of the 3 implementations I set up, the Charles Schwab implementation was the winner through Q3.

This morning, in the process of doing research for another article I hope to write on the value of dividends in your ETF-based portfolio, I happened to note that the Charles Schwab implementation had brought in substantially less dividends through Q3 than either the Vanguard or Fidelity implementations. When I dug in to understand the reasons why, I quickly discovered that the following three Schwab ETFs pay dividends annually as opposed to quarterly:

• Schwab International Equity ETF (SCHF)
• Schwab Emerging Markets Equity ETF (SCHE)
• Schwab U.S. TIPS ETF (SCHP)

While, in theory, this does not imply additional outperformance by the Schwab implementation of the portfolio (since the share price should be reduced by the value of the dividends), it does mean that this implementation will generate a healthy dose of cash in Q4.

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