[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…]
In recent years ETFs have become increasingly popular as means of establishing cost efficient, low maintenance exposure to time-tested investment strategies. Russell recently rolled out a line of “investment discipline ETFs” that essentially automate the construction of portfolios consistent with various portfolio management techniques, including Growth at a Reasonable Price (GRPC), Contrarian (CNTR), and Low [...]
First, the good news: all those fears about runaway inflation following from the massive injections of capital into financial markets appear to have been overblown. Now for the bad news: the alternative may be much worse. For months wary investors have been eagerly watching CPI reports, fearful of the release indicating that price increases are [...]
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