Inside The Simple, Surprisingly Effective Dividend ETF
Sometimes the simplest solution is the most effective. That certainly seemed to be the case when it comes to dividend-focused exchange-traded products in 2011. As investors have sought to enhance current return profiles while scaling back the risk of equity investments, the landscape has become cluttered with ETPs targeting stocks of dividend-paying companies. Currently there are more than 40 ETFs linked to indexes that employ a dividend-focused methodology to determine holdings, including both products that seek to maximize current yields and those that value consistency and stability of dividends over magnitude [see A Tale Of Two Dividend ETFs]. Some of these products utilize rather complex weighting methodologies and selection criteria to assemble a basket of dividend-paying stocks. And then there’s DOD, one of the least diversified and simplest exchange-traded products available to U.S. investors. The results, however, have been mighty impressive over the last couple of years. Under The Hood [...] Click here to read the original article on ETFdb.com. Related Posts: Seven Surprising ETF Holdings: Why Investors Should Always Look Under The Hood ETF Dividend Ideas For 2011 Apple & Verizon Team Up On iPhone: How Will ETFs Respond? Friday’s ETF To Watch: Health Care SPDR (XLV) Will Tax Hikes Slam Telecom ETFs?
Sometimes the simplest solution is the most effective. That certainly seemed to be the case when it comes to dividend-focused exchange-traded products in 2011. As investors have sought to enhance current return profiles while scaling back the risk of equity investments, the landscape has become cluttered with ETPs targeting stocks of dividend-paying companies. Currently there are more than 40 ETFs linked to indexes that employ a dividend-focused methodology to determine holdings, including both products that seek to maximize current yields and those that value consistency and stability of dividends over magnitude [see A Tale Of Two Dividend ETFs]. Some of these products utilize rather complex weighting methodologies and selection criteria to assemble a basket of dividend-paying stocks. And then there’s DOD, one of the least diversified and simplest exchange-traded products available to U.S. investors. The results, however, have been mighty impressive over the last couple of years. Under The Hood [...]
Click here to read the original article on ETFdb.com.
Related Posts:- Seven Surprising ETF Holdings: Why Investors Should Always Look Under The Hood
- ETF Dividend Ideas For 2011
- Apple & Verizon Team Up On iPhone: How Will ETFs Respond?
- Friday’s ETF To Watch: Health Care SPDR (XLV)
- Will Tax Hikes Slam Telecom ETFs?
