“For many investors, ETFs are an appealing way to receive broad sector diversification in one portfolio. There are a number of dividend-focused ETFs to choose from, but it is important to understand what they own and their relevant cost factors,” Rosenbluth wrote.
The two highest-yielding U.S. equity ETFs to which S&P assigns overweight rankings are WisdomTree Total Dividend (NYSEArca: DTD), which has a SEC 30-day yield of 3.14%, and Vanguard High Dividend Yield Index (NYSEArca: VYM).
WisdomTree Total Dividend
Full disclosure: Tom Lydon’s clients own DVY.