Dividend Focused ETFs' Performance Depends On Financial Sector

Submitted By David Templeton
The number of new dividend focused exchange traded funds (ETFs) seems to have grown rapidly over the past few years. The unfortunate factor associated with these ETFs is nearly all of them have a heavy weighting to the financial sector. In order for these investments to gain positive traction from a performance perspective, improvement in the performance of financials will need to occur.

Below is a table of a few of the dividend focused ETFs along with the sector weightings for each respective ETF. The table also includes the ETF yield and performance for the last 12-months. Additionally, the last two columns of the spreadsheet detail the sector weightings for the S&P 500 Index along with the 12-month return for each sector. The full spreadsheet can be accessed at this link.

The ETFs list in the above table are:

  • iShares Dow Jones Select Dividend Index Fund (DVY)
  • First Trust Morningstar Dividend Leaders Index Fund (FDL)
  • PowerShares High Yield Equity Dividend Achievers Portfolio (PEY)
  • PowerShares International Dividend Achievers Portfolio (PID)
  • Vanguard High Dividend Yield ETF (VYM)
  • SPDR S&P Dividend ETF (SDY)
  • WisdomTree Total Dividend Fund (DTD)
  • WisdomTree Dividend Top 100 Fund (DTN)
  • WisdomTree MidCap Dividend Fund (DON)
  • Claymore/Zachs Yield Hog Portfolio (CVY)


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