Investors are often drawn to the high dividends or high returns of SCPIs (French real estate investment trusts). However, in the long run, are these strategies truly more profitable than a growth ETF? In this article, "High Dividends, SCPI Returns, or Growth ETFs: What Do the Numbers Really Say?", we objectively compare SCPIs, dividend ETFs, and growth ETFs to determine which strategy performs best over time.
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⚠️ Attention : The historical performance figures shown are indicative only and do not guarantee future results. The examples are for educational purposes only and do not constitute investment advice. Fees, taxes, and exchange rate fluctuations, depending on individual circumstances, can significantly affect the final result.
Introduction
High dividends give a reassuring impression: every month or every quarter, money falls into our account.
Real estate investment trusts (REITs) offer a similar experience: you own property and receive high rental income every month or every three months. Plus, without active management.
Conversely, a growth-oriented ETF distributes very few dividends. Yet, is it the least profitable option?
SO, Which strategy is truly the most advantageous over 10, 20, or 30 years?
In this article, we will compare four approaches:
- a diversified, European, and historically profitable real estate investment trust (SCPI) like CORUM Origin* For example
- a global high-dividend ETF (VHYL)*)
- a US equity ETF like the S&P 500, represented here by the VOO ETF*
- And, to illustrate an even more growth-oriented strategy, the Nasdaq-100 via the QQQ ETF*.
A dividend is not free.
Before comparing products, it is essential to understand a key aspect that many stock market beginners confuse:
-> A dividend is not an additional return.
When a company pays a dividend, a portion of the company's value is transferred to the shareholder in the form of cash.
Let's take a very simplified example.
One share is worth 100 CHF and pays a dividend of 4 CHF. After the dividend payment, the share is worth approximately 96 CHF.
The investor therefore owns:
- 96 CHF in the form of a share
- 4 CHF in cash
- that's still 100 CHF in total
The dividend is therefore a way to receive the yield, This is not additional income.
Two different philosophies for investing
Investors must select one of the two strategies and choose their ”team”:
Strategy to dividends
The goal is to receive regular cash income passively. That is, to invest in an asset that provides high immediate or short-term returns.
Examples of suitable investments:
- SCPI
- High Dividend ETFs
Growth strategy
The goal is to maximize the portfolio's value over several decades. That is, to invest today in an investment that will appreciate in value in a few years.
Placement examples:
- S&P 500 ETF
- Nasdaq-100 ETF
- Global growth-oriented ETFs (e.g., VT ETF)
In reality, the first strategy favors immediate or short-term income. The second one favors long-term capital accumulation.
Let's analyze the advantages and disadvantages of each investment.
Comparative investments
To have a concrete comparison, let's take four examples.
| Investment | Strategy | dividends or rents distributed | Growth potential | Number of shares approximately | Area |
|---|---|---|---|---|---|
| CORUM Origin | Passive real estate via a SCPI | Very High | Weak | 168 properties | Eurozone |
| VHYL | Multi-sector dividend stocks | Students | AVERAGE | 2,300 shares | World |
| VOO | Large-cap, multi-sector stocks | Quite weak | pupil | 500 shares | USA |
| QQQ | Leading US Growth Stocks | Weak | very high | 100 shares | USA |
As a result, a SCPI and a VHYL aim for quick and high incomes, but with moderate growth, while the VOO ETF and the QQQ ETF focus on growth with low dividends.
What do historical performances tell us?
This is where the comparison becomes interesting.
Over a period of approximately ten years (2016-2025), historical performance varies greatly depending on the asset.
| Investment | Indicative annualized yield |
|---|---|
| SCPI CORUM Origin | ~8 % |
| Global high-dividend ETF | ~9 % |
| S&P 500 | ~14 % |
| Nasdaq-100 | ~19 % |
These figures are not forecasts. They simply show a historical difference in the annualized return of each investment.
Example with $10,000 USD over 10 years
Suppose that 10 years ago, an investor invested $10,000 USD without adding any more money in the meantime. What would the amount be after 10 years with compound interest?
| Annual yield | Capital after 10 years | |
|---|---|---|
| SCPI | 8 % | ~21,600 USD |
| Global dividend ETF | 8,5 % | ~22,600 USD |
| S&P 500 | 14,5 % | ~38,700 USD |
| Nasdaq-100 | 19,5 % | ~59,400 USD |
We are witnessing the incredible effect of compound interest with a high return.
Example with $10,000 USD over 20 years
And if we compare this example over 20 years, the difference is several hundred thousand dollars.
| Annual yield | Capital after 10 years | |
|---|---|---|
| SCPI | 8 % | ~ 46,600 CHF |
| Global dividend ETF | 8,5 % | ~51,100 USD |
| S&P 500 | 14,5 % | ~149,000 USD |
| Nasdaq-100 | 19,5 % | ~352.00 USD |
High dividends: is it a trap?
Let's assume two portfolios of 100,000 USD.
Portfolio A: yield of 8 %
In one year:
- He distributed approximately 5,000 CHF in dividends.
- increased the capital by CHF 3,000.
Portfolio B: yield of 14 %
In one year:
- He distributed only CHF 1,500 in dividends.
- increased the capital by CHF 12,500.
In this case, portfolio A yields more cash. But in reality, it's portfolio B that creates more wealth over the long term.
This is often the trap of high dividends. It's difficult to find an investment with both a high dividend and a high return over the long term.
SCPI: Why are the returns so attractive?
High-performing SCPIs have an attractive psychological advantage.
The investor indirectly owns properties and receives high rental income each month, without active management. In other words, a rental income without management.
For example, CORUM Origin is a diversified SCPI (French real estate investment trust) invested in the Eurozone. It held 169 properties as of March 31, 2026. Its 2025 yield was:
- of 6.50 % annualized
- Including 5.93 % of annual rent (distributed monthly) and
- 0.57 % from capital gains.
However, if we reduce taxes and fees, and compare the total past performance with a few growth ETFs, it's not as appealing. We'll come back to that…
High-dividend ETFs: the compromise between income and growth
A high-dividend ETF like VHYL is particularly attractive for those seeking a balance between growth and dividends.
The investor thus owns thousands of companies around the world, in several sectors, favoring stocks that generally pay above-average dividends.
The fund distributes its income quarterly, that is, approximately every three months.
Over the period 2016-2025, VHYL recorded a total annualized return of approximately 9 % in USD, dividends reinvested. This means that a $10,000 investment at the beginning of 2016 would have reached approximately $24,100 USD by the end of 2025, before taxation and assuming reinvestment of distributions.
The total return of the VHYL ETF can be broken down into two main sources:
- dividends distributed, which represent on average approximately 3.5 % of capital per year during this period; ;
- the evolution of the value of the shares held by the ETF, which constitutes approximately 5.5% on average per year.
The important point is therefore that VHYL does not only generate dividends. Business growth is also significant.
This allows for a very globally diversified portfolio, and one that has historically been quite profitable over the long term.
Let's now analyze each investment in detail:
SCPI vs. High Dividend ETFs vs. Growth ETFs
Diversification: ETFs have the advantage
On this point, ETFs have a clear advantage.
- CORUM Origin has a diversified real estate portfolio in Europe with approximately 168 properties, but remains focused on a single major asset class: European real estate.
- VHYL allows you to own more than 2,300 companies on every continent of the world
- VOO provides access to the 500 largest American companies that make up the S&P 500.
- QQQ focuses its exposure on approximately 100 companies in the Nasdaq-100.
We can therefore simplify as follows:
| Investment | Diversification |
|---|---|
| European SCPI | European real estate diversification (real estate sector only) |
| VHYL | Very strong global diversification (multi-sector) |
| VOO | Strong American diversification (multi-sector) |
| QQQ | Limited US diversification and technology concentration (multi-sector) |
However, the number of securities is not sufficient to measure the risk. For example, owning 2,000 stocks worldwide does not necessarily mean having a perfectly balanced portfolio.
However, an ETF like VHYL, which invests in more than 2300 companies across all sectors and continents, greatly reduces the risk of losing money.
👉 Conclusion: Advantages to ETFs, especially VHYL
Volatility: the apparent major advantage of SCPIs
This is probably where SCPIs have their best argument.
A listed ETF can lose 20, 30, or more in a few months. The value of a SCPI (real estate investment trust) shown in its statements generally changes much less frequently.
But be careful: Low displayed volatility does not necessarily mean lower economic risk.
The price of a share is constantly updated, while the price of a share in a SCPI is assessed much less frequently and the real estate market is less liquid.
To put it simply:
| Investment | Visible volatility |
|---|---|
| SCPI | Weak |
| Dividend ETF | Low to medium |
| S&P 500 | Medium to high |
| Nasdaq-100 | Strong to very strong |
If you are unable to tolerate a temporary drop of 30 % in your portfolio, a heavily growth-oriented ETF may be psychologically difficult to hold.
👉 Conclusion: advantages of SCPIs
Swiss taxation: beware of oversimplifications
This is probably the part of the article that deserves the most caution.
In Switzerland, Capital growth on securities held is subject to low taxation, if the investor is not considered a professional securities trader.
On the other hand, Dividends and other investment income are quite taxable.
The tax rate varies depending on the canton, the municipality, the investor's income and tax situation.
But it is true that, as a general rule, the tax on dividends can be estimated at around 15%, for an average investor.
A concrete example: same yield, but not the same taxation
Let's imagine two Swiss investors, each with 100,000 CHF.
Both portfolios achieve exactly the same total return: 8 %, either 8,000 CHF in earnings over the year.
The only difference is the way in which this yield is obtained.
Portfolio A: more dividends
- Capital invested: CHF 100,000
- Total yield: 8 %
- Annual dividends: CHF 5,000
- Capital growth: CHF 3,000
- Total annual earnings: 8,000 CHF
Portfolio B: more growth
- Capital invested: CHF 100,000
- Total yield: 8 %
- Dividends: CHF 1,500
- Capital growth: CHF 6,500
- Total winnings: 8,000 CHF
The two investors therefore obtained exactly the same yield.
The difference is simply this:
Investor A receives more money immediately in the form of dividends, while investor B retains more return in the form of capital growth.
But what happens after taxes?
To simplify the example, let's assume that dividends are taxed at 15 % and that capital growth be imposed at 1%.
| Wallet A | Portfolio B | |
|---|---|---|
| Initial capital | 100,000 CHF | 100,000 CHF |
| Total yield | 8,000 CHF | 8,000 CHF |
| Dividends | 5,000 CHF | 1,500 CHF |
| Capital Growth | 3,000 CHF | 6,500 CHF |
| Dividend tax (15 %) | -750 CHF | -225 CHF |
| Capital gains tax (1 %) | -30 CHF | -65 CHF |
| Dividends after tax | 4,220 CHF | 1,210 CHF |
| Total profit after tax | 7,220 CHF | 7,710 CHF |
In this example, the two investors had exactly 8,000 CHF in pre-tax return.
However, after taxation:
- Investor A (high dividends and low growth) retains 7,220 CHF ;
- Investor B (low dividends and high growth) retains 7,710 CHF.
The difference is 490 CHF for a single year.
Over 20 years, this represents more than CHF 9,500 in additional taxes for investor A.
👉 One key point to remember is that to optimize Swiss taxation, it's better to favor stock market growth over dividends or SCPI annuities..
The cost: a small percentage, a huge impact
The costs often seem insignificant, but they are not.
Let's take CHF 100,000 invested for 30 years. Let's assume that the portfolio achieves an annualized average of 8 % before fees.
With 0.2 % annual fees
- Approximate net yield: 7.8 %.
- Final capital: approximately 950,000 CHF.
With 1 % of annual fees
- Approximate net yield: 7 %.
- Final capital: approximately CHF 761,000.
A difference of just 0.8 percentage points in fees per year can therefore represent nearly 190,000 CHF After 30 years. That's huge.
ETF vs SCPI
Low-cost index ETFs have a clear advantage here.
For example, VOO displays a cost ratio of only 0.03 %, while the ETF VHYL requires 0.29% in TER costs.
If we include the TER (regional express train) fees plus the fees for an economic stock market account, we should budget approximately:
- 0.5% -1% of expenses per year on average
Conversely, SCPIs can have significant entry fees. CORUM Origin, for example, currently displays subscription fees of 11.96 %.
Management fees are already included in the distribution of annuities, so I do not include them in the fees.
Although the annual estimate depends on the SCPI, I think the client should expect on average:
- 1.% – 1.5% of fees per year on average with a SCPI
👉 As a result, ETFs often offer lower fees than SCPIs, which allows for better long-term returns.
Estimated net return: what is actually left after fees and taxes?
After comparing diversification, volatility, taxation and fees, it is worthwhile to perform one last exercise: How much would each investment have actually yielded over the period 2016-2025?
To simplify the comparison, we will consider three investments:
- CORUM Origin to represent a diversified European SCPI
- VHYL to represent a global high-dividend ETF
- VOO, which tracks the S&P 500, to represent a growth-oriented ETF.
The figures below are educational estimates based on historical performance from the period 2016-2025. They obviously do not predict future performance.
Before taxes
Over this period, annualized returns have been very different:
| Investment | Approximate historical annual yield |
|---|---|
| SCPI CORUM Origin | ~7,1 % |
| VHYL Global Dividend ETF | ~9,2 % |
| VOO S&P 500 ETF | ~14,8 % |
At first glance, the gap is already significant.
But the total return doesn't tell the whole story. Part of the return may be paid to the investor in the form of dividends or property income, while the rest comes from the growth in the value of the investment.
Following a simplified tax system
To illustrate the impact of taxation, let us assume, in a simplified manner, that distributed income is taxed at 15 % and that private capital gains are not taxed.
This assumption does not necessarily reflect the actual tax situation of every Swiss investor. Taxation depends in particular on the canton, personal circumstances, type of investment, and, for foreign investments, applicable tax treaties.
With this assumption, we can obtain the following order of magnitude:
| Investment | Historical total yield | Estimated distributed income | Estimated income tax | Estimated net yield* |
|---|---|---|---|---|
| SCPI CORUM Origin | ~7,1 % | ~6,6 % | ~1,0 % | ~6,1 % |
| ETF VHYL | ~9,2 % | ~3.5–3.8 % | ~0.5–0.6 % | ~8.6–8.7 % |
| VOO S&P 500 ETF | ~14,8 % | ~1,9 % | ~0,3 % | ~14,5 % |
* Simplified estimate intended for comparing strategies. It does not constitute a personalized tax calculation.
And what if we add the costs?
So far, we have mainly compared performance and the impact of taxation. But fees must also be taken into account.
Using the orders of magnitude presented previously, we can add an estimate of the average annual costs:
- SCPI CORUM Origin: ~1.25 %
- ETF VHYL: ~0.75 %
- VOO S&P 500 ETF: ~0.50 %
The result then becomes:
| Investment | Historical yield | Estimated tax | Estimated costs | Estimated net yield |
|---|---|---|---|---|
| SCPI CORUM Origin | ~7,1 % | ~1,0 % | ~1,25 % | ~4,85 % |
| ETF VHYL | ~9,2 % | ~0,55 % | ~0,75 % | ~7,90 % |
| VOO S&P 500 ETF | ~14,8 % | ~0,3 % | ~0,50 % | ~14% |
These figures are deliberately presented as orders of magnitude. The actual costs depend in particular on the broker, exchange fees, transactions carried out and the structure of each SCPI.
One must also be cautious with SCPIs: some fees are already factored into the performance figures published by the management company. The comparison above therefore constitutes a simplified simulation, and not an exact accounting calculation of the historical net return.
Example with 10,000 CHF invested?
To make this difference more concrete, let's now imagine that an investor places 10,000 CHF in each of these investments and makes no further payments for ten years.
Using previous estimated net returns:
| Investment | Estimated net yield | Capital after 10 years |
|---|---|---|
| SCPI CORUM Origin | ~4,85 % | ~16,050 CHF |
| ETF VHYL | ~7,90 % | ~21,400 CHF |
| VOO S&P 500 ETF | ~14,0 % | ~37,100 CHF |
The difference is significant.
Of course, this is not a performance forecast. This simulation assumes that the net return remains the same each year, which will obviously not be the case in reality.
The goal is simply to illustrate the power of compound interest : a few percentage points difference in annual return can create a considerable gap after several years.
What are the key takeaways?
This comparison primarily helps us understand one thing:
Distributed return is not the same as total return.
A high-dividend SCPI or ETF can distribute significantly more income than a growth ETF. However, this does not necessarily mean that the investor becomes wealthier.
For an investor who does not need immediate income, a more growth-oriented strategy can offer several advantages:
- less taxable income in the short term
- more capital left invested
- Very low fees with a few growth index ETFs
- greater long-term capitalization potential.
Conversely, high-income investments such as the VHYL ETF or SCPIs, for example, may be of interest to someone who wishes generate a regular income for a short period, but he will have to agree to pay more fees and taxes.
Should multiple investments be included?
A portfolio can perfectly combine growth ETFs, high-dividend ETFs, and high-dividend investments like a real estate investment trust (REIT). Indeed, it's perfectly acceptable to add several investments to your portfolio.
For example :
- 50 % Global Growth ETF or S&P 500 (Diversified Growth)
- 20 % ETF Nasdaq-100 (strong growth potential, but poorly diversified)
- 20 % Global Dividend ETF (high dividends, highly diversified globally and moderate growth potential)
- 10 % Diversified European SCPI (High monthly income, but little growth potential)
Note that no portfolio is perfect. It is important to invest with the understanding that each investment has advantages, disadvantages, and risks of losing money.
Which investment should I choose to start with?
For someone just starting out who doesn't need immediate income, a broadly diversified and low-cost index ETF can be a particularly simple and profitable solution.
In my opinion, a beginner in the stock market should start with one of these two ETFs:
- S&P 500 ETF (example: VOO ETF)
- Global growth ETF (example: VT ETF)
Next, add more aggressive investments (e.g., ETF QQQ), better diversification (e.g., ETF VHYL or SCPI) and also defensive investments to stabilize the value (e.g., ETF government bonds or cash).
My ranking according to the objective
Here's how I would summarize the different strategies.
| Criteria | Approximate winner |
|---|---|
| Immediate income or dividends | SCPI / Dividend ETF |
| High dividends | SCPI / Dividend ETF |
| Historic capital growth | Growth equity ETF |
| Global diversification | Global ETF |
| Low fees | AND F |
| Low volatility | SCPI |
| Better Liquidity | AND F |
| Easy to invest | AND F |
| The easiest investment for a beginner. | AND F |
| The best information regarding taxation in Switzerland | Growth ETF |
| Building long-term wealth | Diversified equity ETF |
There is no single winner. Every investment has its risks, advantages, and disadvantages.
Conclusion: SCPI, dividends or growth?
In truth, the best investment depends on your financial goal:
- High passive income in the short term and low volatility = SCPI
- Building a solid and diversified portfolio over 10 years, with good growth potential = diversified growth ETF such as an S&P 500 ETF for example
- The investment known for its strong growth and historically the least taxed = ETF with strong growth potential such as the QQQ ETF for example
- A compromise between high dividends, growth, volatility, fees and global diversification = global high dividend ETF such as the VHYL ETF for example
My opinion and my ranking
My ranking order for investing is:
- Growth ETFs
- High Dividend ETFs
- European and diversified SCPI
Indeed, I favor stock market growth over dividends or rental income from SCPIs (French real estate investment trusts). However, depending on how my portfolio performs, I plan to diversify it with several assets.
Note that each investor has a different portfolio and must adapt their investments to their financial situation.
FAQ: High dividends, SCPI or growth ETF
Growth ETF or dividend ETF: which is more profitable?
Historically, major growth-oriented equity indices have often outperformed dividend-focused strategies. But this is not guaranteed for the future.
The right indicator is the total yield, and not the dividend alone.
Why do dividends seem reassuring?
Because the investor regularly receives money into their account.
Psychologically, it is often more pleasant to receive 500 CHF in dividends than to see your portfolio increase by 500 CHF without receiving any cash.
However, dividends and profitability should not be confused.
Are SCPIs less profitable than ETFs?
It all depends on the SCPI and ETF you are comparing.
Some SCPIs have achieved excellent historical performance.
CORUM Origin, for example, has an IRR since its inception of 6.94 %. Conversely, some growth equity ETFs have recorded significantly higher performance depending on the period analyzed.
It is essential to compare identical periods and to take into account deducted expenses and taxes.
Is it possible to live solely on dividends?
Yes. But it usually requires a very substantial amount of wealth.
At a distributed yield of 4 %, obtaining CHF 40,000 in annual income requires approximately CHF 1 million in capital before tax and other costs.
For most investors, achieving financial freedom through dividends alone requires decades of saving.
Why can growth ETFs be tax-efficient in Switzerland?
Because capital gains realized on private assets are taxed at a low rate in Switzerland, subject to the rules applicable to the investor's status. Income, however, is taxable.
Note that the actual tax liability depends on the individual circumstances.
Are dividend ETFs useless?
No.
They can definitely have their place in a wallet.
They are particularly attractive for an investor who wants to generate regular income without systematically selling parts of their portfolio.
Moreover, depending on the dividend ETF, it allows for diversification of the investor's portfolio.
The problem arises when we automatically assume that a high dividend means better performance. That's not the case.
High dividends, SCPI income or growth ETFs: what do the figures really say?
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High dividends, SCPI income or growth ETFs: what do the figures really say?
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