ETF Trends
ETF Trends

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.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.