Dividend exchange traded funds have seen intense interest from investors in 2011 as they seek shelter from market volatility in stable sectors and an income stream.
For example, investors have flocked to utilities ETFs due to their conservative reputation and enticing dividend yields. [Utilities ETFs]
The best performers in sector exchange traded funds this year track industries known for dividends and some insulation from economic cycles. [Dividend ETFs]
Aside from sector funds, investors can also choose from ETFs that specialize in dividend-paying stocks.
Here are growth-focused dividend ETFs:
- SPDR S&P Dividend ETF (NYSEArca: SDY) The fund has about $7.8 billion in assets under management, and yields about 3.20%, currently. The index is based upon 50 of the highest yielding dividend stocks in the S&P Composite 1500 Index that have increased dividends every year for the past 25 years, according to Morningstar. [Dividend ETF Gets Warm Reception in Europe]
- PowerShares Dividend Achievers (NYSEArca: PFM) The $266 million fund is focused on the stocks of 190 companies with market caps ranging from $289 million, to $400 million. The dividend yield is at 2.48%.
- WisdomTree Large Cap Dividend Fund ETF (NYSEArca: DLN) The $868 million fund is yielding 2.90%. A passive management approach is taken to the large-cap-focused index.
- Vanguard Dividend Appreciation ETF (NYSEArca: VIG) There are about 7.9 billion in assets under management in VIG. The fund yields 2.10%, and the Dividend Achievers Select Index includes companies that have increased their yield over time. [A Quartet of Dividend ETFs]
Tisha Guerrero contributed to this article.
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.