Why ETF Investors Look to Dividend Growth as a Portfolio Diversifier

More investors are turning to dividend-themed exchange traded funds as a way to diversify their investment portfolios and generate some extra cash along the way.

ETF Trends publisher Tom Lydon spoke with Mannik Dhillon, President of VictoryShares, at the 2017 Morningstar Investment Conference in Chicago April 26-28 to talk about the growing popularity of dividend investments in client portfolios.

“Particularly for folks closer to retirement, it’s always been a great source of income,” Dhillon said. “That’s not changing. It’s only growing in terms of its need in a client’s portfolio.”

As the market environment shifts, especially with rising interest rates on the horizon, income-minded investors are beginning to also look to alternative ways to generate yields.