This week on the Trillions podcast, presented by Bloomberg, VettaFi’s head of research, Todd Rosenbluth, and reporter Suzanne Woolley joined Joel Weber and Eric Balchunas to discuss the critical distinction between dividend growth and high dividend yield ETFs.
As noted by the episode description, “When markets plummet like they have this year, investors want to grab onto something—anything—that isn’t in free-fall. High-dividend exchange-traded funds, with their exposures to the energy and utilities sectors, have emerged as a rare bright spot, or at least a less-dim one. They’ve already seen $25 billion in inflows, which is a record that could double by the end of the year.”
The podcast leads to the discussion of noteworthy ETFs, including the iShares Core High-Dividend ETF (HDV), the Vanguard High Dividend Yield ETF (VYM), the ALPS Sector Dividend Dog ETF (SDOG), the Global X SuperDividend US ETF (DIV), and the SPDR Portfolio S&P 500 High Dividend ETF (SPYD). Additionally, there’s an analysis of holdings and performances, and thoughts on how investors can dabble with these made-for-the-moment products.
As noted by Rosenbluth, High dividend yield ETFs already hit a record per Bloomberg with $25 billion of net inflows, but he and Balchunas also debate on whether they could hit $50 billion by year-end.
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