The bull run has continued on Wall Street as upbeat economic data makes it hard for investors to take profits surrounded by all of the optimism. The Dow Jones Industrial Average kept its multi-week winning streak going on Wednesday after retail sales blew past analyst estimates; this figure posted growth of 1.1% in February, marking a hefty improvement over last month’s reading of 0.2%. Global X and iPath rolled out new products earlier this week that should gain some traction amid all of the euphoria in the stock market [see 101 ETF Lessons Every Financial Advisor Should Learn].
Meet the Dividend ETF Competition
Global X, perhaps best known for their lineup of niche offerings, rolled out the SuperDividend U.S. ETF (DIV) earlier this week on March 12, 2013. The new ETF charges 0.45% in expenses and is linked to the INDXX SuperDividend U.S. Low Volatility Index, which tracks the performance of 50 equally-weighted common stocks, MLPs and REITs that rank among the highest dividend-yielding equity securities in the United States. Furthermore, DIV applies a volatility filter, thereby tracking only the securities that are deemed to have lower relative volatility than the broad U.S. stock market [see 101 High Yielding ETFs For Every Dividend Investor].
The dividend ETF space has become fairly crowded over the last few months and, as such, DIV will surely face some stiff competition. Below are the three most popular dividend-focused ETFs currently on the market:
- Vanguard Dividend Appreciation ETF (VIG, A-)
- iShares Dow Jones Select Dividend Index Fund (DVY, B+)
- SPDR S&P Dividend ETF (SDY, B+)
DIV’s most direct competitor might actually be the PowerShares S&P 500 High Dividend Portfolio (SPHD), which also focuses on low-volatility, high-yielding stocks. The PowerShares ETF charges just 0.30% in annual fees and has accumulated over $73 million in assets under management since launching October 18, 2012.
Meet the MLP ETP Competition
Barclays iPath expanded its product lineup with the launch of the Barclays ETN+ Select MLP ETN (ATMP) on March 12, 2013. This new ETN charges 0.95% in fees and is linked to the Atlantic Trust Select MLP Index, which offers exposure to a basket of midstream U.S. and Canadian MLPs. Much like the dividend ETF space, the MLPs ETFdb Category has also grown tremendously over the last year, meaning that ATMP will face off with some very established competitors [see Energy Bull ETFdb Portfolio].
Below are the three most popular MLP ETPs currently on the market:
- JPMorgan Alerian MLP Index ETN (AMJ, B)
- ALP Alerian MLP ETF (AMLP, B+)
- UBS E-TRACS Alerian MLP Infrastructure Index (MLPI, A-)
Follow me on Twitter @SBojinov.
[For more ETF analysis, make sure to sign up for our free ETF newsletter.]
Disclosure: No positions at time of writing.