The popularity of dividend and low-volatility ETFs shows many investors want a conservative strategy if they’re going to dip a toe in the stock market.
For example, Vanguard Dividend Appreciation ETF (NYSEArca: VIG) is one of the best-selling funds in 2012, raking in $1.9 billion of inflows year to date through July, according to ETF Industry Association data. [An ETF That Tracks Quality Dividend Stocks]
The iShares Dow Jones US Select Dividend (NYSEArca: DVY) has attracted $837 million and SPDR S&P Dividend (NYSEArca: SDY) has brought in $466 million.
“While the belief in the U.S. stock market has taken a hit, ETFs continue to grow. Some of the most successful launches over the past year are in low-volatility products, which buy stocks that exhibit below-average levels of price movement,” said Nicholas Colas, ConvergEx Group chief market strategist, in a note Tuesday.