This ETF Has Outperformed VOO In 2 Of The Last 3 Years
"This Actively-Managed ETF Has Proven That Their Multi-Manager Strategy May Indeed Be Superior."
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Current Price: $45.84
Last Distribution: $0.11
Ever since Capital Group Dividend Value ETF (CGDV) popped up on my radar months ago, I was instantly drawn to its differentiated investment strategy.
While there are ETFs with much longer track records, I believe strategy > history—and CGDV’s approach gives it a real shot at outperforming peers over time.
If you’re looking for a blend of growth and income, CGDV checks both boxes—and in my opinion, it deserves consideration as a long-term core holding.
Performance Update: Still Holding Its Own 📉
Recently CGDV has delivered:
+5% return over the past ~4 months
Outperforming the broader S&P 500 Index (~4%)
Strong relative performance despite tech volatility
Even with a shorter track record (inception: Feb 2022), CGDV continues to prove that its strategy is working.
CGDV vs. The Competition 📊
Let’s address the elephant in the room.
Many investors compare CGDV to:
Schwab U.S. Dividend Equity ETF (SCHD)
Fidelity High Dividend ETF (FDVV)
Vanguard S&P 500 ETF (VOO)
What’s driving the differences?
SCHD’s Outperformance (YTD):
Higher exposure to Energy Select Sector SPDR Fund
Benefited from oil spike tied to geopolitical tensions
CGDV’s Short-Term Lag:
Heavier allocation to Technology Select Sector SPDR Fund
Tech correction earlier in 2026 created temporary headwinds
But here’s the key: Short-term sector rotation ≠ long-term strategy failure
If AI-driven growth continues, CGDV’s tech tilt becomes a tailwind, not a weakness.
CGDV vs Everybody:
In 2023, the first full year since inception, CGDV outperformed VOO and other popular dividend ETFs like SCHD, DGRO, & FDVV in total returns, up 29.19%. VOO was second with a total return of 27%.
In 2024, VOO had the highest total return of the group, up roughly 26%. CGDV was 3rd behind FDVV, who beat by a modest 1%.
And last year, CGDV again proved their strategy was superior despite their short track record, up close to 26%. VOO was in second with FDVV in 3rd place.
Why CGDV’s Strategy Stands Out 🧠
1. Multi-Manager Advantage
Unlike passive ETFs that rebalance on a schedule, CGDV uses multiple portfolio managers who:
Actively reposition holdings
Make real-time decisions
Focus on best ideas, not index rules
2. Concentrated, High-Conviction Portfolio
CGDV isn’t trying to own everything.
Focuses on large, established dividend-paying companies
Higher conviction = higher potential alpha
3. Growth Tilt Through Technology
~30% exposure to tech
Positioned to benefit from AI CapEx cycle
Companies like Meta Platforms are already:
Cutting costs
Investing heavily in AI
Driving long-term efficiency gains
This is a multi-year trend, not a short-term trade.
4. Global Diversification (Selective)
CGDV includes:
🌍 ~2.3% Canada
🌍 ~3.1% EMEA
🌍 ~2.0% China
Not massive—but enough to:
Add diversification & capture international upside
Income Profile: Low Yield, High Growth 💰
Let’s be clear:
Current yield: ~1.25%. And is lower than peers like SCHD or FDVV but…
Distribution Growth Tells the Story:
Increased from $0.03 → $0.11 since inception
Consistent upward trend
And importantly:
✅ Qualified dividends
Tax-efficient for both taxable & retirement accounts
This is why I’ve said before: CGDV behaves more like a growth fund with income, not a traditional dividend ETF.
What Could Go Wrong ⚠️
No investment is perfect.
Here are the real risks:
Short Track Record: less than 5 years of data
Hasn’t been tested in a major downturn like:
2008 Financial Crisis or 2020 pandemic crash
Multi-manager approach could:
Underperform passive funds or miss sector rotations
Example: In 2024, CGDV lagged both VOO and FDVV
Any of these could lead to muted returns in 2026
My Expectations Going Forward 🔮
Barring a major market downturn, I expect:
15%–20% total returns annually (long-term)
Driven by:
Tech exposure (AI growth)
Active management edge
Concentrated portfolio
Selective global exposure
Bottom Line ✅
CGDV isn’t your typical dividend ETF — and that’s exactly why I like it.
How do you feel about CGDV? Let me know in the comments.
Just a note to let readers know I will be going paid soon. Be on the lookout for the article laying out the details. Feel free to provide any feedback!
Happy Investing!
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Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.
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