Related: Constructing a Portfolio with Multi-Factor, Smart Beta ETFs
None of SDVY’s components command weights of more than 1.23%. Financial services is the ETF’s largest sector weight at 31.6%. The consumer discretionary and industrial sectors combine for nearly 46% of SDVY’s lineup. Technology and materials names combine for 16%.
“In our opinion, dividends are often a sign of strong corporate health, and dividend increases may signal growing confidence from management. While many dividend ETFs focus on large-cap stocks, we believe strong dividend policies are just as important for small- and mid-cap stocks. This ETF seeks to provide exposure to small- and mid-cap stocks that may be well-positioned for dividend growth.” said First Trust Vice President Ryan Issakainen in the statement.
SDVY charges 0.6% per year, or $60 on a $10,000 investment.
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