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DOD

Sometimes the simplest solution is the most effective. That certainly seemed to be the case when it comes to dividend-focused exchange-traded products in 2011. As investors have sought to enhance current return profiles while scaling back the risk of equity investments, the landscape has become cluttered with ETPs targeting stocks of dividend-paying companies. Currently there are more than 40 ETFs  linked to indexes that employ a dividend-focused methodology to determine holdings, including both products that seek to maximize current yields and those that value consistency and stability of dividends over magnitude [see A Tale Of Two Dividend ETFs].

Some of these products utilize rather complex weighting methodologies and selection criteria to assemble a basket of dividend-paying stocks. And then there’s DOD, one of the least diversified and simplest exchange-traded products available to U.S. investors. The results, however, have been mighty impressive over the last couple of years. [click to continue…]

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The Best Dividend ETFs Aren’t Dividend ETFs At All

by Stoyan Bojinov on September 27, 2011

As the ETF industry has expanded rapidly in recent years, the universe of asset classes and investment strategies accessible through the exchange-traded wrapper has increased dramatically. In addition to funds offering exposure to natural resources and volatility–two asset classes previously beyond the reach of many investors–a number of products have popped up that seek to deliver opportunities to tap into intriguing investment methodologies in a cost efficient and time efficient manner.

One area of tremendous interest focuses on dividends; there are literally dozens of ETFs that are designed to concentrate exposure on dividend-paying stocks, from those linked to dividend-weighted methodologies to those with stringent consistency requirements for inclusion. Popular equity funds in the space include DOD, IDV, and HDV; while products with international flavor like PID, DWX, and EDIV can help investors expand the geographic scope of their portfolio’s holdings.

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Three ETFs I Wouldn’t Feed To My Dog

by Michael Johnston on June 27, 2011

As the size of the ETF lineup has ballooned to nearly 1,300 products, there has been some criticism over the increased granularity and sophistication that is characteristic of many of the latest additions.  Many of the ETPs that have hit the market over the last few years probably have very little appeal to the vast [...]

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Dividend ETF Special: 25 Equity ETFs With Attractive Distribution Yields

by Michael Johnston on June 7, 2011

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. From ETFs linked to dividend-weighted indexes to those that focus on companies with stellar distribution histories to simply sector-specific funds in high yield corners of the [...]

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DOD vs. DIA: A Better Dow Jones ETF?

by Michael Johnston on April 5, 2010

When reporting on the performance of the U.S. stock market, everyone from the Wall Street Journal to local anchormen generally refer to the Dow Jones Industrial Average, one of the oldest and most widely-recognized stock benchmarks. So it’s not surprising that one of the most popular ETFs available to U.S. investors is the Dow Jones [...]

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The Problem With Dow ETFs

by Michael Johnston on February 2, 2010

The Dow Jones Industrial Average is one of the most widely-followed stock indexes in the world, seen as a barometer of U.S. equity market performance. The rise of the ETF industry has given investors the option to track the performance of this benchmark, and a number of spin-offs have increased ETF options for investing in [...]

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