Indeed, PFM has value tilt as large-cap value names account for a third of the ETF’s weight. The value bias is also apparent at the sector level with consumer staples and energy combining for nearly 40% of the fund’s weight. [Serious Dividend Growth With This ETF]
Top holdings include Johnson & Johnson (NYSE: JNJ) 4.2%, Chevron Corp (NYSE: CVX) 4.2%, Wal-Mart Stores (NYSE: WMT) 4%, Procter & Gamble (NYSE: PG) 4% and Exxon Mobil (NYSE: XOM) 4.1%.
PFM also merits consideration as a dividend ETF to own if and when interest rates rise because the industrial, technology an consumer discretionary sectors combine for a third of the ETF’s weight. Historically, those are the three best-performing sectors when rates rise. [Fight Inflation With Dividend Growth ETFs]
PFM gained 25.7% last year as 10-year Treasury yields surged. PFM’s trailing 12-month dividend yield is 1.85% and the fund features a return on equity of 23.9%, according to PowerShares data.
PowerShares Dividend Achievers Portfolio
Tom Lydon’s clients own shares of P&G.