QDF features a heavy cyclical tilt, which can be a positive trait in advance of higher U.S. interest rates. The financial services, technology and consumer discretionary sectors combine for nearly half of the ETF’s weight. Conversely, QDF’s exposure to the rate-sensitive telecom and utilities sectors is relatively modest as is the fund’s allocations to the downtrodden energy and materials groups.
“The focus on quality dividends makes sense when comparing simply to high dividend stocks and while the dividend yield on the Quality Dividend ETF is currently higher than the typical dividend ETF, the relative overvaluation of dividend stocks in general remains a short term concern,” adds the Seeking Alpha article.
FlexShares Quality Dividend Index Fund
