Other dividend ETFs with more than $5 billion in assets include SPDR S&P Dividend ETF (NYSEArca: SDY) and Vanguard Dividend Appreciation ETF (NYSEArca: VIG).
There are many dividend-themed ETFs and investors should research their unique wrinkles and how the indexes select companies. [3 Approaches to Dividend ETF Investing.]
“There is no free lunch in the market, so the largest dividend yields tend to come from stocks that have fallen substantially or are likely to cut their dividend in the future,” says Morningstar’s Michael Rawson in an analyst report on iShares Dow Jones Select Dividend.
“Income-oriented investors often look to high-dividend-paying stocks as another source of income and as a supplement to fixed-income holdings,” he wrote.
For full disclosure, Tom Lydon’s clients own DVY.