Investors Sticking With Utilities-Heavy Dividend ETFs as Sector Slides

NOBL’s data has been updated to reflect a 1.92% utilities weight at the end of last year. The ETF has pulled in nearly $145 million in new assets this year.

The Schwab US Dividend Equity ETF (NYSEArca: SCHD), the cheapest dividend-focused ETF on the market with an expense ratio of just 0.07%, proves this year to embrace dividend ETFs with utilities weights. SCHD has a utilities weight of just 0.59% and is up 2.1% this year.

SCHD implements a quality tilt, targeting large companies that have paid out dividends in each of the past 10 consecutive years. Additionally, holdings are also selected based on fundamental factors like cash flow and debt, return on equity, dividend growth and dividend yield. [A Dividend ETF With a Quality Bias]

SCHD’s trailing 12-month yield of 2.71% shows investors do not make a significant yield by embracing this ETF and its scant utilities exposure. SCHD has added $30.5 million in new assets this year.

ProShares S&P 500 Aristocrats ETF

Tom Lydon’s clients own shares of DVY and SCHD.