Among the recent batch of alternative index-based exchange traded funds to hit the market, some new dividend ETF options have been outperforming prominent, go-to investment choices.
According to S&P Capital IQ, the Deep Value ETF (NYSE: DVP), First Trust NASDAQ Rising Dividend Achievers ETF (NasdaqGM: RDVY) and FlexShares Quality Dividend Index Fund (NYSEArca: QDF) have been outperforming their older, larger competitors this year, reports Amey Stone for Barron’s.
Year-to-date, DVP rose 1.4%, RDVY gained 0.4% and QDF was 0.1% higher.
In contrast, some of the largest dividend ETFs, like the Vanguard Dividend Appreciation ETF (NYSEArca: VIG) and the iShares Select Dividend ETF (NYSEArca: DVY), have posted negative returns so far this year and underperformed the S&P 500.
DVP, which started trading back in September, tracks the TWM Deep Value Index, an advanced beta strategy created by Tiedemann Wealth Management that tries to provide concentrated exposure to attractively valued dividend-paying companies from the S&P 500 with positive earnings, strong free cash flows and solid balance sheets. DVP shows a 2.16% 30-day SEC yield. [Don’t Forget These Dividend ETFs]