The ETF’s top holdings include AT&T (NYSE: T) 8.9%, Chevron (NYSE: CVX) 6.6%, Microsoft (NasdaqGS: MSFT) 6.2%, Johnson & Johnson (NYSE: JNJ) 6.2% and Pfizer (NYSE: PFE) 6.2%. The top ten holdings make up 58.2% of the overall portfolio.
HDV leans toward defensive sectors. Sector allocations include health care 20.7%, consumer goods 20.2%, telecom 15.7%, utilities 12.6%, technology 11.1%, oil & gas 10.3%, consumer staples 3.7%, industrials 2.5%, basic materials 2.0% and financials 1.1%.
Consequently, the ETF is comprised of “a handful of dividend-payers with strong balance sheets–ho-hum stocks,” according to Morningstar analyst Samuel Lee. “HDV is fundamentally a bet that tortoises beat hares. The evidence is supportive: low-volatility stocks have had better risk-adjusted returns than high-volatility stocks in most markets studied.”
iShares High Dividend Equity Fund
For more information on dividend funds, visit our dividend ETFs category.
Max Chen contributed to this article.