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The consumer discretionary and utilities sectors combine for over 47% of RDIV’s weight while the energy and real estate sectors combine for another 31.3%. The ETF is significantly underweight financial services, healthcare and technology stocks relative to the S&P 900 Index.
Rising interest rates are often viewed as a risk to dividend stocks and the related exchange traded funds. However, some dividend ETFs can help income investors stick with dividend-paying stocks even as the Federal Reserves continues boosting borrowing costs.
Although RDIV has exposure to some high-yield sectors, the ETF is also chock full of companies that have steadily boosted payouts, many with lengthy histories of dividend increases.
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