HDV tracks the Morningstar Dividend Yield Focus Index, which is comprised of the 75 highest-yielding companies that meet Morningstar’s quality and financial health standards. The annualized performance difference, or tracking error, between HDV and its index has been 0.5%, according to issuer data.
HDV is rated overweight by S&P Capital IQ. The research firm notes the ETF could prove durable for income investors in the event of a pullback in U.S. equities.
“For those concerned that with the S&P 500 at record levels a near-term pullback is possible, the higher-yielding, more defensive iShares Core High Dividend might be worthy of attention,” said S&P Capital IQ.
HDV’s top-10 holdings include eight members of the Dow Jones Industrial Average with Wells Fargo (NYSE: WFC) and Philip Morris (NYSE: PM) the outliers. With that includes heavy exposure to some of the most consistent U.S. dividend raisers. Those stocks combine for 17.3% of HDV’s weight. Of HDV’s top-10 holdings only Intel (NasdaqGS: INTC), Merck (NYSE: MRK) and Wells Fargo do not have dividend increase streaks of at least five years.
iShares Core High Dividend ETF
