Some of those indices should ring bells for ETF investors because they are linked to well-known dividend funds. For example, the NASDAQ US Broad Dividend Achievers Index is the underlying index for the $340.4 million PowerShares Dividend Achievers Portfolio (NYSEArca: PFM). To be included among PFM’s 210 constituents, companies must have dividend increase streaks of at least 10 years.
PFM’s top-10 holdings include Exxon Mobil (NYSE: XOM), Wal-Mart (NYSE: WMT) and PepsiCo (NYSE: PEP). Speaking of 10-year dividend increase streaks, that is the requirement for admission into NASDAQ Dividend Achievers Select Index, the index behind the Vanguard Dividend Appreciation ETF (NYSEArca: VIG).
VIG is the largest U.S. dividend ETF by assets and has been widely embraced cost-conscious income investors because of its 0.1% annual expense ratio. Top-10 holdings include Procter & Gamble (NYSE: PG), Pepsi and Exxon. [ETFs for Stocks With Consistent Dividend Growth]
The PowerShares High Yield Equity Dividend Achievers Portfolio (NYSEArca: PEY) tracks the US Dividend Achievers 50 Index. PEY, which is home to $360.3 million in AUM and a trailing 12-month yield of 3.31% does an admirable job of mixing large-, mid- and small-caps and pays a monthly dividend.
Indices from NASDAQ Global Indexes are also linked to other well-known ETFs such as the PowerShares International Dividend Achievers Portfolio (NYSEArca: PID) and the First Trust NASDAQ Technology Dividend Index Fund (NasdaqGS: TDIV). [Checkout These Digital Dividend ETFs]
Cumulative Returns of NASDAQ Dividend Indices
Source: NASDAQ OMX Global Indexes