Wed, May 13, 10:11 AM
Wed, Feb. 11, 9:39 AM
Feb. 24, 2014, 3:35 PM
- Comparing metrics for the two of the more popular dividend strategies - the SPDR S&P Dividend ETF (SDY +0.4%) and the Vanguard Dividend Appreciation ETF (VIG +0.7%) - against the two largest large-cap value ETFs - the Russell 1000 Value ETF (IWD +0.9%) and Vanguard's Value ETF (VTV +0.7%) - Larry Swedroe finds valuations quite stretched for the dividend players.
- The SDY sports a P/E ratio of 17.2x, price/book ratio of 2.5x, and price/cash flow ratio of 10.5x, with the VIG showing similar. The value ETFs have P/E below 14x, price/books below 2x, and price/cash flow below 6x.
- The popularity of dividends has led to a pleasing rise in the values of the stocks, but has thus reduced expected future returns, reminds Swedroe. And for taxable accounts, it's even worse as dividends are less tax-efficient than capital gains.
- Dividend ETFs: DVY, VIG, AMLP, SDY, VYM, AMJ, BDCL, SCHD, HDV, MLPL, YMLP, KBWD, BDCS, DES, PEY, MLPI, SPHD, DIV, DLN, DHS, MLPA, ENY, DTD, DGRW, DON, MLPN, FDL, NOBL, FVD, PFM, EMLP, MLPS, BIZD, MLPG, MLPY, MLPX, MLPJ, SDYL, AMU, YMLI, DVYL, ATMP, DGRS, ZMLP, RDIV, RDVY, MLPW, IMLP, QDYN, ENFR, QDF, QDEF, MLPC
Feb. 6, 2014, 6:26 PM
Mar. 13, 2013, 5:48 PM
The Fund employs a "passive management" - or indexing - investment approach designed to track the performance of the Index. The Index is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the United States energy infrastructure Master Limited Partnership ("MLP") asset class.
MLPs are publicly traded partnerships engaged in the transportation, storage and processing of minerals and natural resources. By confining their operations to these specific activities, their interests, or units, are able to trade on public securities exchanges exactly like the shares of a corporation, without entity level taxation.
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