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David Fry
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David Fry writes a subscription newsletter focused on technical analysis of exchange-traded funds, called ETF Digest (www.etfdigest.com). Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and... More
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ETF Digest
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Dave's Daily
My book:
The Best ETFs: U.S. Equities (A Companion Guide To Building Your ETF Portfolio)
  • TOP 10 ESTABLISHED DIVIDEND ETFs 0 comments
    Dec 12, 2011 3:11 PM | about stocks: XLU, DVY, DTD, CVY, DHS, DTN, VIG, FDL, VNQ, RWX

    This posting features a comprehensive review of the established dividend ETF sector. In this view we feature those dividend related ETFs that have more conservative constituents and have been in existence for longer than a few years. There are dozens within the category with more on the way as current western demographics with an aging population gravitate to safer dividend and income sectors. To simplify matters for investors we've whittled choices down to 10. The issues chosen represent a broad cross section of domestic, global, overseas, real estate (REITs) and other sectors from a variety of sponsors. Doing so makes sorting through the sector more manageable for most investors.

    Within each category we filter them by placing importance on high assets under management, liquidity and/or strategies that make a difference the most critical tests. Newer issues tied to new indexes with long (over 5 years) of historical data may be worth investigating, featuring and using as alternatives if necessary.

    As equity market volatility has increased over the past two years we've noticed a large shift from conventional equity sectors to dividend and income sectors. This trend may continue or stabilize just due to demographics previously cited.

    Remember just searching for the highest dividend yields can lead to troubled sectors where the ability to maintain the dividend may become questionable.

    We rank the top 10 ETF by our proprietary stars system as outlined below. If an ETF you're interested in is not included but you'd like to know a ranking send an inquiry to support@ETFDigest.com and we'll attempt to satisfy your interest.

     
    Strong established linked index 
    Excellent consistent performance and index tracking 
    Low fee structure 
    Strong portfolio suitability 
    Excellent liquidity

     
    Established linked index even if "enhanced" 
    Good performance or more volatile if "enhanced" index 
    Average to higher fee structure 
    Good portfolio suitability or more active management if "enhanced" index
    Decent liquidity

     
    Enhanced or seasoned index 
    Less consistent performance and more volatile 
    Fees higher than average 
    Portfolio suitability would need more active trading 
    Average to below average liquidity

     
    Index is new 
    Issue is new and needs seasoning 
    Fees are high 
    Portfolio suitability also needs seasoning 
    Liquidity below average

    We feature a technical view of conditions from monthly chart views. Simplistically, we recommend longer-term investors stay on the right side of the 12 month simple moving average. When prices are above the moving average, stay long, and when below remain in cash or short. Some more interested in a fundamental approach may not care so much about technical issues preferring instead to buy when prices are perceived as a bargain and sell for other reasons when high; but, this is not our approach. Premium members to the ETF Digest receive added signals when markets become extended such as DeMark triggers to exit overbought/oversold conditions.

    #1-10...

    Stocks: XLU, DVY, DTD, CVY, DHS, DTN, VIG, FDL, VNQ, RWX
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