The iShares Select Dividend ETF Rises And Falls With Utilities

The iShares Select Dividend ETF Rises And Falls With Utilities

A Seeking Alpha Contribution

Summary

  • DVY is the second largest dividend ETF.
  • Income suffered from the 2008 financial crisis.
  • Post-2008, the fund is overweight the utilities sector and this largely determines how it performs relative to the market.

Dividend ETFs are more popular than ever thanks to the central banks of the world giving us zero interest rate policies (ZIRP), but the word “dividend” in an ETF means different things in different funds. Some funds target very high-yields, such as Global X SuperDividend (NYSEARCA:SDIV), but others such as Vanguard Dividend Appreciation (NYSEARCA:VIG) aim for growth, while WisdomTree has an entire lineup of ETFs that use dividends as a selection factor in their indexes. Investors benefit from having a wide range of choices among dividend funds, with sector and international exposure sliced and diced in many different ways.

With more than $13 billion in assets, one of the largest dividend ETFs is iShares Select Dividend (NYSEARCA:DVY). It is also one of the oldest, created in November 2003, and sets itself apart from the other big ETFs by having a portfolio that tilts towards mid caps and utilities….To Continue Reading, Please Click Here.

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