Special Report: Dividend ETFs In Focus
Dividend investing has been gaining popularity in recent years thanks to the evolution of the ETF industry which has “democratized” this classic value investing strategy. The exchange-traded product structure has brought forth the dividend investing strategy to investors of all walks, given the low-maintenance and cost efficiency benefits associated with the ETF wrapper. Investors have embraced more than a dozen products offering exclusive exposure to dividend paying companies, taking full advantage of the return enhancement and diversification benefits associated with this timeless investment strategy.
The introduction of dividend ETFs has opened up the asset class of dividend paying companies to investors who previously would have spent significant amounts of time or money (or both) to tap into a corner of the market that offers the potential to generate current income in addition to capital gains. This asset class is now available with all the benefits that come along with the exchange-traded structure, including low expenses, intraday liquidity, and the potential for enhanced tax efficiencies (a topic we cover in depth in this report).
With interest rates at record lows and a sluggish global economic recovery, many investors continue to struggle when it comes to building a portfolio that delivers attractive current income without taking on considerable risks. Interest rates on investment grade fixed income securities have been significantly pushed down, and investors who require a constant stream of payments from their portfolios have been forced to get creative in their search for yield. Enter dividends, a versatile tool and investing strategy that may be appropriate for investors of all types.
For investors looking to generate current returns from the equity portion of their portfolio, there is no shortage of exchange-traded products offering attractive dividend yields in the current environment. Investors can choose from ETFs linked to dividend-weighted indexes or opt for a product that instead focuses on companies with stellar distribution histories, or select sector-specific funds from high yield corners of the market.
The ETFdb team of analysts assembled this report with the goal of highlighting all the aspects that should be considered when searching for the right dividend ETF, as well as giving our objective reviews of a dozen different products in this space. We hope you’ll find the material to be a valuable resource in your research and investing; we welcome any comments or questions on the topic you may have.
Table Of Contents
To navigate to any of these sections, simply click on the links below:
- Product Overview
- 30-Day SEC Yield
- Analyst Blurbs
- First Trust STOXX European Select Dividend Index Fund (FDD)
- Global X SuperDividend ETF (SDIV)
- Vanguard Dividend Appreciation ETF (VIG)
- Guggenheim S&P Global Dividend Opportunities Index ETF (LVL)
- Guggenheim ABC High Dividend ETF (ABCS)
- WisdomTree International SmallCap Fund (DLS)
- WisdomTree International Dividend ex-Financials Fund (DOO)
- WisdomTree Japan SmallCap Fund (DFJ)
- WisdomTree MidCap Dividend Fund (DON)
- WisdomTree Middle East Dividend ETF (GULF)
- EG Shares Emerging Markets High Income Low Beta ETF (HILO)
- State Street SPDR S&P Emerging Markets Dividend ETF (EDIV)