Hi Laila,
Firstly, I would always caution against speculating on any single company or sector of the market:
I have covered these points extensively on askaboutmoney
Please see these posts:
http://www.askaboutmoney.com/showthread.php?p=892699#post892699
http://www.askaboutmoney.com/showthread.php?t=112897
http://www.askaboutmoney.com/showthread.php?t=94076
According to leading Financial Economists, equity portfolios should be diversified by market capitalisation weightings across developed economies - so you should start from a position of holding about 40% in the USA, 10% UK and 10% Japan etc in every sector and every stock in every country.
If we want a higher expected return, you need to be willing to take more risk but not all risks are rewarded. It is now generally accepted that the most reliable way of capturing risk premiums in equity markets is by tilting your portfolio towards Emerging Markets where you have a higher expected return than from Developed economies.
Furthermore, by tilting the portfolio towards smaller companies and value companies you have a higher expected return than from large cap & growth companies.
You are sort of doing this with the Dividend ETFs, but not really if truth be known and there are better ways of doing this.
For example, an ETF has to trade along with a commercial index, it is therefore not indifferent about the prices paid to trade stocks - an ETF therefore subtracts value equal to it's trading costs and annual management charge.
According to Merton Miller 1990 Nobel Prize winner, the expected return of a stock is a function of its cost of capital and dividend policy doesn't matter. What this means is that money is money and it doesn't matter if you live on a dividend stream or sell stocks to realise capital gains - it amounts to the same thing.
Therefore targeting high dividend stocks is not the best way to allocate capital in an equity portfolio.
Finally, regarding the managed fund - it doesn't matter who its with, active investing is always a negative sum game. We often hear that now is a good time (or a bad time) for active investing. That does not make sense. In aggregate, active investors always underperform by their fees and expenses.
see an excellent explanation [broken link removed]
All the best,
Marc