IDLV combines reduced volatility with an overlooked dividend advantage. Country weights explain part of IDLV’s dividend advantage. The ETF’s largest country weight is 26% to Canada and six of the ETF’s top-10 holdings are Canadian banks. Canadian banks have solid performers this year and in most cases, feature better yields and steadier dividend growth than their U.S. counterparts.
Speaking of dividends and low volatility, the PowerShares S&P 500 High Dividend Portfolio (NYSEArca: SPHD) added over $6 million in new assets last month while also modestly outpacing the S&P 500. That is no small feat considering SPHD’s 18.2% weight to the utilities sector, which lagged the broader market by a wide margin last month. SPHD is well-positioned to finish 2014 on a strong note because 20% of its holdings, most of which are serial dividend raisers, are expected to boost payouts before the yearend. [An ETF for Late Dividend Increases]
iShares MSCI USA Minimum Volatility ETF
Todd Shriber owns shares of SPHD.