U.S. equities posted their worst first half performance since 1970, as inflation concerns, Fed rate hikes, and slowing economic growth weighed on markets, according to S&P Dow Jones Indices.
Dividend, value, and low volatility strategies outperformed, signaling the market’s continuing emphasis on defense. Growth and High Beta have been the year’s worst performers.
The top nine large-cap value equities ETFs of the year as measured by net inflows YTD include: the iShares Core High Dividend ETF (HDV); the First Trust Morningstar Dividend Leaders Index Fund (FDL); the VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC); the Dimensional International Value ETF (DFIV); the Pacer Global Cash Cows Dividend ETF (GCOW); the Avantis U.S. Large Cap Value ETF (AVLV); the WisdomTree US High Dividend Fund (DHS); the JPMorgan U.S. Value Factor ETF (JVAL); and the ALPS Sector Dividend Dogs ETF (SDOG), according to VettaFi.
Of the nine funds above, DFIV is the only actively managed fund.
Looking at expenses, GCOW is the most expensive, charging a 60 basis point expense ratio. The cheapest of the bunch is HDV, which charges just 8 basis points. The rest fall somewhere in the middle, with CDC, DFIV, DHS, and SDOG all charging between 35 and 40 basis points.
Digging into the concentration of each fund unlocks stark differences. DHS, which holds 315 securities, is highly concentrated. The top 10 securities in the fund amount to 46.73%.
CDC, with 102 holdings, is the least concentrated, with just 15.58% of the fund’s assets in top 10 holdings.
SDOG holds the fewest securities, comprising 52 securities. The fund maintains equal allocations to each of the ten sectors, resulting in the top 10 holdings being weighted 21.57%.
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