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 November 3, 2003.
DVY holds and weights 100 of the highest-yielding U.S. companies. Its estimated yield is 3.73%, and it has a 0.38% expense ratio with $20.55B in assets under management. DVY's 48.21% three-year total return through September was competitive with similar-yielding peers like DHS and HDV but fell short of FDVV's 86.49% gain. My fundamental analysis reveals DVY's inferior growth and quality factor exposure, sourced to high exposure to Utilities, as the most likely explanation.
A smart beta exchange traded fund, the iShares Select Dividend ETF (DVY) debuted on 11/03/2003, and offers broad exposure to the Style Box - Large Cap Value category of the market.
| XSGO Exchange | US Country |
The described company is a fund that prioritizes investing in the stocks of leading U.S. companies, particularly focusing on those with the highest dividend yields. This investment approach implies that the fund allocates at least 80% of its assets towards the securities that form part of its underlying index, as well as in other investments sharing similar economic characteristics. The objective is to track the performance of the leading dividend-yielding stocks in the U.S., thereby providing investors with potential income alongside capital appreciation opportunities.
This service involves the fund investing primarily in a carefully selected portfolio of U.S. stocks that offer high dividend yields. The selection is based on the performance metrics of the underlying index, ensuring that investors have exposure to some of the most reliable income-generating stocks in the market.
The fund employs a strategy that aims to mimic the performance of its underlying index, which measures the success of high dividend-yielding U.S. stocks. This approach allows investors to benefit from the broader market movements of leading dividend-paying companies while minimizing the risk through diversification.
Apart from direct investment in the component securities of the underlying index, the fund also invests in financial instruments that have economic characteristics substantially identical to those securities. This may include derivative contracts and other financial instruments designed to replicate the index's performance, providing a complementary strategy to direct equity ownership.