Investment Thesis
Investing in the WisdomTree U.S. High Dividend Fund (NYSEARCA:DHS) feels like a gamble. On the one hand, I'm concerned about a sharp downturn in the equities market and like
DHS: This 4% Yielding ETF's Strategy Doesn't Pay Dividends
Summary
- DHS has an estimated forward yield of 4%, but it's overly concentrated and has routinely underperformed the market even during drawdowns.
- Investors looking for higher income should at least do so in a fund with a history of tracking the market.
- You'll gamble to get that yield, which isn't a wise move considering how many other high-yield options there are in a crowded dividend ETF space.
The Sunday Investor has completed all the educational requirements for the Chartered Investment Manager designation and is on track to become a licensed options and derivatives trading advisor. Focusing on U.S. Equity ETFs, The Sunday Investor maintains a comprehensive ETF Database that tracks the performance and fundamentals for nearly 1,000 funds. He is active in the comments section and ready to answer questions about any ETF you might considering.
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