[This article is a free preview of the special ETF research report Dividend ETFs In Focus: Finding The Best Yield. ETFdb Pro members can read the entire report here; sign up for a free 7-day trial to get your copy]
The proliferation of exchange-traded products offering investors exposure to dividend-focused strategies is a testament to the efficiency of the marriage of this methodology with the inherently appealing exchange-traded structure. The wealth of choices is certainly a luxury, as it allows investors to specifically target the exposure desired. But with dozens of exchange-traded products offering up access to dividend paying stocks, it can be challenging to sort through the entire lineup. Not all dividend ETFs are created equal, and in fact the differences in the risk / return profile among the products in this segment of the ETF universe can be significant. The nuances of the underlying indexes can be somewhat complex, but can be critically important in determining the yield and volatility that can be expected from these products. This article serves as a guide for the important factors to consider when evaluating potential dividend ETFs, including index weighting methodology, sector biases, and the several metrics that can be used to measure current returns. [click to continue…]
As we enter year three of record low interest rates, many investors continue to face significant challenges in constructing a portfolio that delivers attractive current income without taking on considerable risks. With interest rates on investment grade fixed income securities pushed down, investors who require a constant stream of payments from their portfolios have been [...]
When constructing a portfolio, most investors focus on the decisions that seem to have the most significant impact on the risk/return profile delivered. How much should be allocated to stocks vs. bonds? What breakdown between developed and emerging markets is desired? What sectors should be overweight, and which should be avoided? These decisions obviously go [...]
As ETFs have burst on to the scene in recent years and worked their way into the investing mainstream, the number of products available and complexity of exposure offered has increased significantly. Advisors and investors have taken steps to educate themselves on the ins and outs of ETFs, but many are still scrambling to play [...]
The meteoric rise of the ETF industry–and to a smaller extent the introduction of index mutual funds some 20 years earlier–has had the effect of transforming indexes from hypothetical measures of performance into investable assets. As indexing strategies continue to gain more widespread acceptance with all levels of investors, the scrutiny of construction and maintenance [...]
The rapid growth of the ETF industry in recent years has altered the investment landscape in more ways than one. The low expense ratios offered by most exchange-traded products have brought increased scrutiny on active managers and called into question their ability to add value to client portfolios. The immediate diversification offered by a basket [...]
When ETFs began to make their way into the investing mainstream, almost all products were “plain vanilla” funds linked to well known stock benchmarks, such as the Dow Jones Industrial Average and S&P 500. But as the popularity of ETFs has surged, so too has the number of product offerings, with approximately 30 issuers now [...]
Value investing is one of the oldest and most popular equity strategies, mastered by legendary investors like Warren Buffett and Benjamin Graham and embraced by countless professional money managers and individual investors. The rise of the ETF industry has presented investors in pursuit of superior dividend yields dozens of options, each offering a unique twist [...]
