When looking at dividend ETFs, investors should make sure to still check under the hood as many of the funds have similar overlapping assets.
“We’re not sure many of these next-generation ETFs are really going to provide investors with meaningful long-term value,” Mill Creek Capital Advisors’ chief investment officer Tom Chapin said in the article. “You can only splice and dice the dividend market in so many ways before it starts getting rather redundant. You’ve got to look underneath the hood and weigh how much in incremental value you’re really getting from any niche ETF, particularly many of these newer dividend ETFs”
Some of the “old guard” dividend ETFs include:
- iShares Dow Jones Select Dividend (NYSEArca: DVY)
- Vanguard Dividend Appreciation ETF (VIG)
- Vanguard High Dividend Yield (VYM)
- WisdomTree Total Dividend (DTD)
- SPDR S&P Dividend (SDY)
- First Trust Value Line Dividend Index (FVD)
For more information on dividend funds, visit our dividend ETFs category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own DVY.