4-Star ETFs Poised to Pop: iShares Dow Jones Select Dividend
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares Dow Jones Select Dividend Index (NYS: DVY) has earned an impressive four-star ranking.
With that in mind, let's take a closer look at iShares Dow Jones Select Dividend and see what CAPS investors are saying about the ETF right now.
iShares Dow Jones Select Dividend facts
Inception | November 2003 |
Total Assets | $8.5 billion |
Investment Approach | Seeks investment results that correspond to the Dow Jones U.S. Select Dividend Index, which are screened by dividend-per-share growth rate, trading volume, dividend payout percentage rate, and are selected based on dividend yield. |
Expense Ratio | 0.40% |
1-Year / 3-Year / 5-Year Annual Return | 10.1% / 10.4% / (2.3%) |
Top Holdings with High CAPS Rating (4 or 5 stars) and Portfolio Weight | Chevron (NYS: CVX) (2.1%) Kimberly-Clark (NYS: KMB) (2%) McDonald's (NYS: MCD) (1.9%) |
Dividend Yield | 3.5% |
Alternatives | SPDR S&P Dividend (NYS: SDY) Vanguard High Dividend Yield (NYS: VYM) |
Source: Morningstar and Motley Fool CAPS.
On CAPS, 97% of the 328 members who have rated iShares Dow Jones Select Dividend believe the ETF will outperform the S&P 500 going forward. These bulls include 4melody and NetscribeETF.
Earlier this year, 4melody gave a simple, yet solid, reason to buy into the ETF: "Reliability of its core components with current market conditions."
In fact, iShares Dow Jones Select Dividend sports an annual turnover ratio of just 18%. That's lower than that of other dividend ETFs such as SPDR S&P Dividend (52%) and Vanguard High Dividend (34%).
CAPS member NetscribeETF elaborates on the bull case:
The Index measures the performance of a selected group of equity securities issued by companies that have provided relatively high dividend yields on a consistent basis over time. ... This ETF's 0.40% expense ratio is low compared with conventional actively managed funds. ... These reasons make the ETF a compelling idea with a special stress on the fact that the Index of 100 securities is reconstituted yearly allowing only the best performing dividend paying stocks.
What do you think about iShares Dow Jones Select Dividend, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to trackiShares Dow Jones Select Dividend?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Chevron, Kimberly-Clark, and McDonald's. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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