DVY is a reliable dividend-focused fund with solid returns and impressive dividend growth. The fund's Utilities exposure offers investors a sector trading at a very reasonable valuation compared to the S&P 500. The US continues to out-perform the developed world in terms of economic growth, leaving me focused on large-cap US stocks.
Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the iShares Select Dividend ETF (DVY) is a passively managed exchange traded fund launched on 11/03/2003.
The iShares Select Dividend ETF (DVY) was launched on 11/03/2003, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
iShares Select Dividend ETF underperforms similar dividend ETFs such as Fidelity's High Dividend ETF and Schwab's Dividend ETF. DVY lacks exposure to the technology sector, hindering its price growth potential. The dividend yield of DVY is not high enough to provide a substantial income stream for retired investors. Additionally, peer ETFs outpace the dividend growth.
The iShares Select Dividend ETF (DVY) is one of the popular funds in Wall Street, thanks to its higher dividend yield than its peers. As a result, it has attracted over $18 billion in assets under management (AUM) from investors despite its higher expense ratio.