The O’Shares FTSE US Quality Dividend ETF (NYSEArca: OUSA), the first exchange traded fund from “Shark Tank” personality Kevin O’Leary, also combines dividends along with the low volatility and quality factors in an attempt to diminish exposure to high dividend equities that have experienced large price declines. OUSA gained 5.4% over the past month.
The FlexShares Quality Dividend Index Fund (NYSEArca: QDF) is a also prime example of an ETF that emphasizes both quality and dividends. QDF emphasizes the quality factor, of which a company’s ability to generate free cash and dividend growth and stability are integral tenants. Another element that has been critical to QDF’s success is the emphasis on management efficiency and a company’s ability to generate cash. QDF was 3.6% higher over the past month.
The Compass EMP US Large Cap High Dividend 100 Volatility Weighted Index ETF (NasdaqGM: CDL) tracks the highest 100 dividend yielding stocks of the CEMP U.S. Large Cap 500 Volatility Weighted Index with four quarters of positive earnings and are weighted based on their daily standard deviation, or volatility. Over the past month, CDL advanced 6.2%.
The SPDR Russell 1000 Yield Focus ETF (NYSEArca: ONEY) also includes a combination of core factors like high value, high quality and low size characteristics, along with a high yield characteristic. ONEY rose 4.2% over the past month.
Additionally, the Legg Mason Low Volatility High Dividend ETF (NasdaqGM: LVHD) should help investors who are seeking new sources of yield in a changing market environment. LVHD selects U.S. equity stocks with relatively high yield and low price and earnings volatility, and the fund also focuses profitable companies. LVHD increased 7.1% over the past month.
Max Chen contributed to this article.