Dividends and share repurchase programs are gaining momentum at U.S. companies, moves that highlight advantages offered by the FlexShares Quality Dividend Index Fund ( QDF A ).
Dividends and share repurchase programs are gaining momentum at U.S. companies, moves that highlight advantages offered by the FlexShares Quality Dividend Index Fund ( QDF A ).
Since August interest rates have been moving higher. The 10-year U.S. Treasury Note’s yield has moved from 60 basis points to 1.6%. On a historical basis, this is still very low. Investors seeking income may have better choices than buying treasuries.
There were some bumps in the road last year, but dividend growth is returning, highlighting the benefits of exchange traded funds like the ProShares S&P 500 Aristocrats ETF ( NOBL A- ). NOBL tracks the S&P 500 Dividend Aristocrats Index and targets the cream of the crop, only selecting components that have increased their dividends for at least 25 consecutive years.
Proponents of exchange traded funds (ETFs) frequently cite their rock-bottom fees. According to a Kiplinger article , various studies substantiate this claim. “Numerous studies show that over the long term, managed mutual funds cannot beat an index fund, such as an ETF,” the article noted. “For example, according to the SPIVA scorecard , 75% of large cap funds ‘underperformed’ the S&P 500 over five years through Dec. 31, 2020.
Dozens of exchange traded funds offer exposure to high dividend equities. One of the most venerable is the iShares Select Dividend ETF (DVY) . DVY seeks to track the investment results of the Dow Jones U.S. Select Dividend Index and is composed of relatively high dividend paying U.S. equities.
Fixed income investors seeking more than the staid, but steady Treasury note rates don’t have to venture too far down the yield curve with the Global X SuperDividend U.S. ETF (DIV) . DIV seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx SuperDividend® U.S. Low Volatility Index.
Up 33% for the year, the iShares S&P Small-Cap 600 Value ETF (IJS) is showcasing advantages in two investing categories: small cap equities and value. IJS seeks to track the investment results of the S&P SmallCap 600 Value IndexTM, which measures the performance of the small-capitalization value sector of the U.S. equity market.
A dividend ETF is a fruitful alternative to keeping money in the bank or having to screen individual stocks.
In this case, the Schwab U.S. Dividend Equity ETF is a low-cost dividend investment tool but delivers great performance when compared with peers.
By State Street Global Advisors During a period of heightened volatility, SPDR ETFs served as an effective price discovery tool that enabled investors to assess the valuation and liquidity of the overall market.