Tuesday, July 15, 2008

Dividend ETFs

This morning I was looking over some of the available ETFs that focus on dividend paying stocks. Given the dramatic drop and continued uncertainty in financial stocks, I thought it would be interesting to review each ETFs exposure to the financial sector. I also reviewed Yield, Expense Ratio, and Average Volume.

Information presented here is from Morningstar
It seems like there would be a couple of ways to play dividend ETFs in the current market. If you are risk adverse or believe that there is more trouble ahead for financial stocks the WisdomTree LargeCap Dividend Fund (DLN) and the Vanguard High Dividend Yield ETF (VYM) look interesting as they hold less then 30% financial shares and have yields around 3.5%. If on the other hand you feel that financial stocks have been oversold and expect a rebound then the Powershares High Yield Equity Dividend Achievers Portfolio (PEY) and the WisdomTree High-Yielding Equity Fund (DHS) look interesting due to their greater then 50% exposure to financial stocks and yields of 7.41% and 5.89% respectively. These ETF seem to have reasonable expense ratios and decent average volume. I hope to review some some of these ETFs in greater detail soon. Let me know if there are other Dividend ETFs out there that look interesting or if there are any of these ETFs you would like me to review in greater detail. Have a great day.

1 comment:

D said...

Welcome to the blogosphere!

I am looking forward to reading your blog posts on dividends!