Tuesday , 18 June 2019

The 10 Most Popular Dividend ETFs For Investors Seeking Yields & Returns In a Rocky Market

“…The American economy is on track this year to expand at the fastest pace in 13 years thanks to:

  • robust job creation,
  • strong GDP growth,
  • a 50-year low unemployment rate,
  • solid wage gains,
  • [and]…rising consumer and business confidence.

Against such a backdrop, nothing seems a better strategy than picking dividend-focused products so we highlight here the 10 most popular dividend ETFs for investors seeking yields and returns in a rocky market.”

Prepared by Lorimer Wilson, editor of munKNEE.com – Your KEY To Making Money! 

[Editor’s Note: This version* of the original article by Sweta Killa has been edited ([ ]), restructured and abridged (…) by 27% for a FASTER – and easier – read. Please note: This complete paragraph must be included in any re-posting to avoid copyright infringement.]

“Dividend-focused securities offer safety in the form of payouts while at the same time providing stability as mature companies are less volatile to large swings in stock prices…because [such]…companies…act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis.

[Below we highlight the 10 most popular dividend ETFs for investors seeking yields and returns in a rocky market:]

1. Vanguard Dividend Appreciation ETF (VIG)

This fund:

  • is the largest and most popular ETF in the dividend space
    • with AUM of $27.8 billion
    • and average daily volume of about 929,000 shares…
  • follows the Nasdaq US Dividend Achievers Select Index, which is composed of high-quality stocks that have a record of raising dividend every year…
  • holds 182 securities
    • with none…[having] more than a 4.5% share
  • charges 8 bps in annual fees and
  • has a Zacks ETF Rank #1 (Strong Buy)
    • with a Medium risk outlook.

2. Vanguard High Dividend Yield ETF (VYM)

This fund:

  • has amassed $20.9 billion in its asset base,
  • trades in volume of 1.1 million shares a day on average,
  • provides exposure to the high-yielding dividend stocks
    • by tracking the FTSE High Dividend Yield Index,
  • holds 400 securities
    • [with each accounting for no]…more than 3.9% of the assets,
  • has an expense ratio…[of] 0.08% [and]
  • has a Zacks ETF Rank #1
    • with a Medium risk outlook.

3. iShares Select Dividend ETF (DVY)

This fund:

  • has AUM of $16.2 billion,
  • [has an] average daily volume of around 711,000 shares…
  • provides exposure to the high dividend-paying U.S. equities with a 5-year history of dividend growth
    • [by tracking] the Dow Jones U.S. Select Dividend Index
  • holds 98 securities
    • with each accounting for no more than 2.2% of assets…
  • charges 39 bps in fees…and
  • has a Zacks ETF Rank #3 (Hold)
    • with a Medium risk outlook.

4. SPDR S&P Dividend ETF (SDY)

This fund:

  • [has an] AUM of $15.5 billion,
  • [has an] average daily volume of 594,000 shares…
  • provides a well-diversified exposure to 111 U.S. stocks that have been consistently increasing their dividends every year for at least 20 years
    • by tracking the S&P High Yield Dividend Aristocrats Index
    • [with] each accounting for less than 2.4% of the assets,
  • charges 35 bps in fees and
  • has a Zacks ETF Rank #3
    • with a Medium risk outlook.

5. Schwab U.S. Dividend Equity ETF (SCHD)

This fund:

  • has an AUM of $7.6 billion,
  • trades in solid volume of about 896,000 shares a day,
  • offers exposure to 117 high-dividend yielding U.S. companies that have a record of consistent dividend payments supported by fundamental strength based on financial ratios and ample liquidity….
    • by tracking the Dow Jones U.S. Dividend 100 Index
    • [with] none of the components…holding more than 5.7% of assets
  • charges 7 bps in annual fees,
  • has a Zacks ETF Rank #3
    • with a Medium risk outlook.

6. iShares Core High Dividend ETF (HDV)

This fund:

  • …[has] an AUM of around $6.4 billion and…
  • trades in a solid volume of around 602,000 shares a day
  • offers exposure to 75 high quality and high dividend stocks
    • by tracking the Morningstar Dividend Yield Focus Index,
    • 10% is concentrated on the top firm while other firms hold less than 7.7% share each…
  • charges 8 bps in fees per year and
  • has a Zacks ETF Rank #1
    • with a Medium risk outlook.

7. iShares Core Dividend Growth ETF (DGRO)

This fund:

  • has accumulated $4.7 billion in its asset base and
  • trades in solid volumes of about million shares.
  • provides exposure to 480 companies having a history of consistently growing dividends
    • by tracking the Morningstar US Dividend Growth Index,
    • with each accounting for less than 3% share…
  • charges 8 bps in fees per year and
  • has a Zacks ETF Rank #1
    • with a Medium risk outlook.

8. First Trust Value Line Dividend Index Fund (FVD)

This fund:

  • has accumulated $4.3 billion in its asset base…
  • sees solid volume of about 585,000 shares a day on average,
  • gives investors exposure to 182 companies
    • by tracking the Value Line Dividend Index…[which] results in
    • an equal-weight approach for individual securities albeit with some concentration risk from a sector look…
  • charges…70 bps a year in fees [and]
  • has a Zacks ETF Rank #3
    • with a Medium risk outlook.

9. iShares International Select Dividend ETF (IDV)

This fund:

  • has amassed $3.8 billion in its asset base
  • [has] trading in volume of 709,000 shares per day on average
  • offers exposure to 101 established, high-quality international companies that have provided consistently high dividend yields over time
    • by tracking the Dow Jones EPAC Select Dividend Index,
    • with none accounting for more than 6.2% share.
  • [concentrates on] the United Kingdom and Australia [which] take the top two spots with 24.3% and 15.9% share, respectively, while other makes up for single-digit allocation each,
  • has an expense ratio of 0.50%.

10. ProShares S&P 500 Aristocrats ETF (NOBL)

This fund:

  • has amassed $3.5 billion in its asset base,
  • trades in a volume of around 487,000 shares a day on average
  • provides exposure to 53 companies that have raised dividend payments annually for at least 25 years
    • by tracking the S&P 500 Dividend Aristocrats
    • with each accounting for no more than 2.1% share
  • has an expense ratio of 0.35% and
  • a Zacks ETF Rank #3
    • with a Medium risk outlook.
(*The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)

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