That means income investors will want to consider ETFs heavy on those sectors. Fortunately, QDF allocates less than 11% of its total weight to those groups. In better news, the ETF standouts as a credible cyclical rotation play because it does feature a combined 26% weight to technology and energy names.
That is not the only high point, but when an almost 20.3% weight to financials is factored in, it becomes clear that QDF also gives investors ample exposure to those sectors, namely financials and technology, that will lead dividend growth in the coming years. QDF’s sector exposure has already made a difference in terms of returns as the new ETF has outperformed some of its older, larger rivals this year that are more heavily allocated to the staples and utilities sectors.
FlexShares Quality Dividend Index Fund
ETF Trends editorial team contributed to this post.