September 26, 2007 at 3:08 pm by Tom Lydon
As we’ve mentioned before, dividend exchange traded funds (ETFs) can be attractive to investors because they generally pay out extra money to shareholders. Many different dividend ETFs are available, so for interested investors, shop around to see which one fits best with your portfolio and investment goals. These ETFs come in all sizes, regions, sectors or a combination of these. For example, here are a couple that WisdomTree offers along with their dividend yield and year-to-date performance:
- WisdomTree International Utilities (DBU) - offers a 3.7% yield and is up 12.4%.
- WisdomTree Emerging Market High-Yielding Equity Dividend Fund (DEM) - gives a 5.8% yield and is up 8.3% for the last three months since it launched in July
WisdomTree isn’t the only ETF provider that offers dividend ETFs. In fact, some ETFs pay dividends that we don’t always consider to be "dividend ETFs." For example, the iShares MSCI Emerging Markets Index (EEM) and the iShares MSCI EAFE Index (EFA) provide 1% and 2% yields respectively, says Gary Gordon for ETF Expert. Year-to-date, EEM is up 27.9%, and EFA is up 10.6%. A few other dividend ETFs with their yield and performance include:
- iShares Dow Jones Select Dividend Index (DVY) - offers a 3.4% yield and is up 0.1%
- SPDR S&P Dividend ETF (SDY) - gives a 3.1% yield and is down 0.3%
- Vanguard Dividend Appreciation ETF (VIG) - offers a 1.6% yield and is up 7.6%
For full disclosure, some of Tom Lydon’s clients own EEM.
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September 27th, 2007 at 7:31 am
How about an 11% yield with capital appreciation? Not with strictly exchange traded funds!
August 17th, 2008 at 8:53 am
etf s sound good
what about etfs in preferred stocks or closed end funds that provide larger income
also etfs in canadian trust for income
August 18th, 2008 at 8:44 am
Hi Ted and Sheia,
There is the PowerShares Financial Preferred (PGF), iShares S&P U.S. Preferred Stock (PFF) and PowerShares Preferred (PGX).
There is a list of the Toronto Stock Exchange’s ETFs available for download at their site:
http://www.tmxmoney.com/en/sector_profiles/exchange_traded_funds/index.html
Thank you for your comment!