The ETF 1-2 Punch: Quality and Dividends

Note: This article is courtesy of Iris.xyz

In a volatile market environment, investors can turn to exchange traded funds (ETFs) that target quality stocks to capture attractive returns over time.

Dividend ETF investors who are seeking stability, along with exposure to the growing U.S. markets, should look to quality instead of chasing after yields.

For instance, the FlexShares Quality Dividend Index Fund (NYSEArca: QDF), FlexShares Quality Dividend Dynamic Index Fund (NYSEArca: QDYN) and the FlexShares Quality Dividend Defensive Index Fund (NYSEArca: QDEF) are a group of smart-beta ETFs that focus on both quality and dividends. High-quality, yield-focused equity position can potentially act as a return stabilizer for a broader portfolio, mitigate risk in volatile markets and provide higher dividend growth.

These ETFs “may be suited to investors seeking to achieve their income needs while still participating in capital growth through the U.S. equity market,” according to FlexShares.