We’ve been covering dividend exchange traded funds a lot lately because investors can’t seem to get enough information on these top-selling ETFs.
Some of the largest dividend ETFs by assets have seen impressive inflows in 2011.
Vanguard Dividend Appreciation ETF (NYSEArca: VIG), iShares DJ U.S. Select Dividend (NYSEArca: DVY) and SPDR S&P Dividend (NYSEArca: SDY) recorded year-to-date net cash inflows of $3.1 billion, $1.3 billion and $1.3 billion, respectively, through September, according to National Stock Exchange data.
These ETFs allow investors to buy a basket of companies with high dividends, with one trade. They have proven popular as interest rates remain low, although investors should remember stocks are more volatile than bonds.
Vanguard High Dividend Yield ETF (NYSEArca: VYM) isn’t one of the three largest dividend ETFs, but it features an expense ratio of 0.18%, one of the lowest in this sector. The ETF touts about $1.7 billion in assets under management. Over the past 12 months, the fund is up almost 11%. The fund has beat the S&P 500 over the past year, and continues to outperform the broad market at the moment. [A Quartet of Dividend ETFs]
Some of the stronger companies represented in the portfolio include Exxon Mobile Corp. (NYSE: XOM), which is the top holding, and Microsoft Corp. (NYSE: MSFT).