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As bond markets continue their turbulence, from our Dividend Stock ETF Trend table, one can clearly see that in the last week, U.S. stock ETFs have outperformed S&P 500 (NYSEARCA:SPY). U.S. REITs (NYSEARCA:IYR), however, have become the loser during this yield market unrest.

Dividend ETFs Performance and Trend (As of 12/15/2010)

Description Symbol 1 Week 4 Weeks 13 Weeks 26 Weeks 52 Weeks Trend Score
SPDR S&P Dividend SDY 1.51% 2.71% 6.1% 9.59% 14.52% 6.89%
PowerShares HighYield Dividend Achievers PEY 1.15% 3.66% 7.45% 10.19% 18.96% 8.28%
First Trust Value Line Dividend Index FVD 1.14% 4.08% 6.82% 9.78% 13.1% 6.98%
iShares Dow Jones Select Dividend Index DVY 1.1% 4.19% 7.2% 8.99% 13.67% 7.03%
Vanguard High Dividend Yield Indx VYM 1.05% 4.99% 9.28% 11.41% 12.79% 7.9%
Vanguard Dividend Appreciation VIG 1.04% 4.92% 9.79% 11.77% 13.17% 8.14%
PowerShares Intl Dividend Achievers PID 0.79% 2.41% 6.21% 12.87% 11.4% 6.73%
SPDR S&P 500 SPY 0.66% 4.97% 10.33% 11.96% 13.01% 8.19%
SPDR DJ Wilshire Intl Real Estate RWX 0.58% 3.05% 6.63% 22.09% 17.89% 10.05%
iShares MSCI EAFE Index EFA 0.38% 2.15% 6.32% 13.91% 3.68% 5.29%
iShares Dow Jones Intl Select Div Idx IDV 0.18% 1.59% 6.08% 15.48% 6.93% 6.05%
iShares S&P U.S. Preferred Stock Index PFF -0.72% -1.45% -1.74% 7.09% 16.38% 3.91%
iShares MSCI Emerging Markets Index EEM -0.73% 1.76% 6.67% 15.67% 12.42% 7.16%
iShares Dow Jones US Real Estate IYR -1.92% 1.02% -0.89% 3.37% 20.22% 4.36%

This is not surprising, as high yield ETFs currently have similar or greater yields than 10 year treasury yields. For example, SPDR S&P Dividend (NYSEARCA:SDY)'s one year yield is about 3.33% compared with the 10 year treasury rate 3.49%. In fact, Dow Jones Select Dividend Index fund DVY has an even higher annual dividend: 3.56%. As stocks are outperforming bonds, high dividend ETFs are logical choices for yield seekers.

From the following trend table, one can see US high dividend ETFs are ranked in the top spots (with an exception of international REITs RWX). The preferred stock ETF, treated as a close cousin of bonds, is pushed to the bottom spot.

Dividend ETFs Trend (As of 12/15/2010)

Assets Class Symbols 12/15
Trend
Score
12/08
Trend
Score
Direction
SPDR DJ Wilshire Intl Real Estate RWX 10.05% 11.11% v
PowerShares HighYield Dividend Achievers PEY 8.28% 8.52% v
SPDR S&P 500 SPY 8.19% 9.26% v
Vanguard Dividend Appreciation VIG 8.14% 8.47% v
Vanguard High Dividend Yield Indx VYM 7.9% 8.39% v
iShares MSCI Emerging Markets Index EEM 7.16% 9.71% v
iShares Dow Jones Select Dividend Index DVY 7.03% 7.71% v
First Trust Value Line Dividend Index FVD 6.98% 7.42% v
SPDR S&P Dividend SDY 6.89% 6.7% ^
PowerShares Intl Dividend Achievers PID 6.73% 8.31% v
iShares Dow Jones Intl Select Div Idx IDV 6.05% 8.36% v
iShares MSCI EAFE Index EFA 5.29% 7.58% v
iShares Dow Jones US Real Estate IYR 4.36% 8.15% v
iShares S&P U.S. Preferred Stock Index PFF 3.91% 5.1% v

click to enlarge

Looking forward, high quality dividend ETFs are good places to be: with so many companies being cash rich these days, dividends are safer than the coupons from bonds.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Yield Focus Turns From Bonds to High Yield Stocks