Tech now accounts for 14.2% of DTD and the ETF’s weights to Apple (NasdaqGM: AAPL), International Business Machines (NYSE: IBM) and Oracle (NYSE: ORCL) have all been slightly increased. DTD’s health care exposure was trimmed a bit.
“The Industrial and Health Care sectors saw the largest reduction in weight within WTDI. Both sectors saw strong absolute returns over the period, which made it harder for their dividend growth to keep pace. The three examples above that saw a reduction in weight help illustrate this trend, with an average return of 62% over the period, but an average dividend growth below 8%,” said Schwartz.
Those two sectors combine for 20.3% of DTD’s weight. DTD has a distribution yield of 2.45%, annual fees of 0.28% and pays a monthly dividend. Here is how DTD has performed against the largest U.S. dividend ETF over the past three years.
Chart Courtesy: ETF Replay.
Tom Lydon’s clients own shares or Apple.