Tag: ETF dividend equity

Income-minded investors can consider an actively managed dividend exchange traded fund strategy to help keep ahead of inflation. The SmartETFs Dividend Builder ETF (NYSE Arca: DIVS) is an actively managed dividend growth strategy that seeks dividend-paying companies that have provided an inflation-adjusted cash flow return on investment of at least 10% in each of the last 10 years.

S&P Dow Jones Indices has unveiled the S&P Dividend Growers Index Series , a new family of indices tracking companies that have consistently increased their dividend payments every year for a specified number of years. The indices target companies that have consistently increased their dividend payments every year for a specified number of years.

Investors seeking income should consider the Global X S&P 500 Covered Call ETF (NYSE: XYLD ). It currently has a dividend yield in excess of 9%. This ETF sells call options on the S&P 500. This strategy could limit the ETF’s price appreciation potential, but it results in a high level of income.

As investors well know, there’s growth investing and there’s value investing. The concept of growth at a reasonable price (GARP) fills the gap between the two, and it’s accessible with the Barron’s 400 ETF (NYSEArca: BFOR ) . “Some investors have sought to bridge the Value–Growth divide through a hybrid strategy, opting for the growth at a reasonable price (GARP) approach popularized by Fidelity manager Peter Lynch ,” according to the CFA Institute .

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.