A New Fund-of-Funds ETF to Target Right Dividend Stocks

Amplify Exchange Traded Funds has come out with a new ETF that can help investors hone in on the right dividend-paying stocks on the market.

The Amplify YieldShares Prime 5 Dividend ETF (BATS: PFV) began trading Wednesday. PFV has a 0.49% net expense ratio.

The new Prime 5 Dividend ETF is essentially a fund-of-funds, holding the top five U.S. dividend-related ETFs selected based on low expense ratios, low share price volatility and high dividend income.

“With over 130 dividend ETFs in the marketplace, it is becoming increasingly difficult for investors to navigate the dividend ETF landscape,” Christian Magoon, ETF industry veteran and CEO of Amplify Investments, said in a press release. “PFV is designed to make dividend investing easy.”

PFV’s current portfolio includes the WisdomTree High Dividend Fund (NYSEArca: DHS) 17.8%, iShares Core High Dividend ETF (NYSEArca: HDV) 20.5%, Schwab US Dividend Equity ETF (NYSEArca: SCHD) 19.7%, Schwab U.S. Large-Cap Value ETF (NYSEArca: SCHV) 19.2% and Vanguard High Dividend Yield ETF (NYSEArca: VYM) 19.2%. The holdings are rebalanced on a quarterly basis.