In my last article on DGRO, I declared this ETF as the best 2019 ETF for dividend growth investors. Four years later, we live in a very different world. Further, VIG, one of DGRO’s main competitors, has also changed somewhat in structure. What does this all mean for investors in 2023? In this article, I do a deep dive into both ETFs, featuring both their similarities and differences.
RDVY is a simple dividend growth index ETF. Dividends have grown over 20% per year since inception, vastly outpacing its peers. Although the fund is a solid dividend growth fund, it currently only yields 2.3%
During times of elevated probability for distress, stability and income predictability are becoming increasingly important factors within typical investor portfolios. While these “flight-to-safety” dynamics warrant the
DIVZ is an actively-managed low-volatility ETF that has a 3.13% expected dividend yield. It was shortlisted for Active Equity ETF of the Year based on performance and fund flows in 2022.High Energy exposure was a big reason.
Dividend growth ETFs provide instant diversification.Although I have a strong preference for a particular ETF, I contend that it is reasonable to also diversify one’s ETF investments.The average yield for the highlighted ETFs is 2.41%, and the average annual dividend growth rate is nearly 11%.
The SPDR S&P International Dividend ETF tracks an index of 100 ex-US dividend stocks.Its top countries are Japan and Canada, and its top sector is utilities.It has some exposure to geopolitical risks related to China.It has suffered a significant decay in capital and distribution since inception.Quantitative Risk & Value members get exclusive access to our real-world portfolio.
