ETF income investors choose dividends over Treasurys

|By:, SA News Editor

Assets in dividend-themed ETFs have ballooned nearly 50% to $80B this year, according to Ned Davis Research, led by Vanguard Dividend Appreciation (VIG) with $3.2B in inflows, the SPDR Dividend ETF (SDY) with $1.2B, and the Vanguard High Dividend Yield ETF (VYM) with $1.6B.

Meanwhile, ETFs holding U.S. government debt hold just $67B in assets, with funds like the iShares 3-7 Year Treasury Bond ETF (IEI) seeing several hundred million exit, and the iShares TIPS Bond ETF (TIP) losing a whopping $6.9B.

The team at Ned Davis recommends looking away from the popular dividend plays and towards a lagging emerging-market alternative, the WisdomTree Emerging Markets Small-Cap Dividend Fund (DGS), yielding 3.3% and up 3.8% this year.

Dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILODGRS, DNL, EMDG, DGRW, VIG, DGRE.

Global dividend ETFs: AXJL, AUSE, GNAT, DTH, DWM, SDIV, DVYE, EDIV, DEM, FDD, FGD, LVL, PID, DEW, WDIV, IDOG, DTN, DOO, IQDF, IQDE, IQDY, IDV, DVYA, DWX, DOL, CCXE, DIM, GULF, DRW, DBU.

Small-cap dividend ETFs: DGS, DFE, DFJ, DXJS, DES, DLS.