As have other utilities-heavy dividend ETFs, DIV has benefited from declining Treasury yields. Ten-year Treasury yields are lower by nearly 5% over the past three months. [Other ETFs Benefit From Utilities Strength]
After Federal Reserve Chair Janet Yellen hinted in late March that interest rates could rise sooner than previously expected, some investors are understandably skittish about exactly when rates will rise and the subsequent impact on their portfolios. However, that has not adversely affected DIV and that is arguably a pleasant surprise when considering the ETF allocates over half of its combined weight to rate-sensitive utilities, telecoms and real estate investment trusts.
DIV charges 0.45% per year and pays a monthly dividend.
Global X SuperDividend U.S. ETF
Tom Lydon’s clients own shares of DVY.