Comparing Four Different Dividend ETFs
Thanks to the evolution of the ETF industry, dividend investing has become even more attractive in recent years. Exchange-traded products allow investors to tap into this popular strategy with relative ease and at significantly lower costs. With dozens of dividend-focused ETFs to choose from, investors are sure to be somewhat overwhelmed as they sort through the entire lineup. One of the most crucial factors investors must consider is that not all dividend ETFs are created equal; often times, the funds utilize certain methodologies that result in vastly different portfolio compositions [see also The Truth About Alternative Weighting Methodologies (And ETFs)]. In general, dividend investing methodologies can be divided into 3 broad sub categories: dividend weighting, dividend consistency, and dividend yield focused funds. For example, WisdomTree’s Large Cap Dividend Fund (DLN) tracks a cap- and dividend-weighted index, which gives the largest allocations to companies with the largest cash dividends. In contrast, State Street’s SPDR S&P [...] Click here to read the original article on ETFdb.com. Related Posts: Details Of Dividend ETFs: Consistency vs. Yield Tax Reform And Dividend ETFs: Cause For Concern? Dividend ETF Investing: Four Critical Factors To Consider How To Find The Right Dividend ETF Comparing A Dividend ETF With A Dividend Weighted ETF
Thanks to the evolution of the ETF industry, dividend investing has become even more attractive in recent years. Exchange-traded products allow investors to tap into this popular strategy with relative ease and at significantly lower costs. With dozens of dividend-focused ETFs to choose from, investors are sure to be somewhat overwhelmed as they sort through the entire lineup. One of the most crucial factors investors must consider is that not all dividend ETFs are created equal; often times, the funds utilize certain methodologies that result in vastly different portfolio compositions [see also The Truth About Alternative Weighting Methodologies (And ETFs)]. In general, dividend investing methodologies can be divided into 3 broad sub categories: dividend weighting, dividend consistency, and dividend yield focused funds. For example,  WisdomTree’s Large Cap Dividend Fund (DLN) tracks a cap- and dividend-weighted index, which gives the largest allocations to companies with the largest cash dividends. In contrast, State Street’s SPDR S&P [...]

Click here to read the original article on ETFdb.com.

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