DHS: High Yield, Deeply Undervalued Portfolio, Dividend Growth Potential
Summary
- DHS is a smart-beta ETF with a portfolio of America's top dividend payers. As of writing this article, its standardized yield was around 3.8%.
- Quant data analysis shows the fund is grossly overweight in value stocks.
- The robust first months of 2021 allowed the DHS price to fully recover from the coronavirus-induced losses, even despite lackluster September taking a few percent away from its YTD gains. However, alpha evaporated in summer, as the tailwinds from the capital rotation waned.
- On the downside, we see a fairly dissatisfying ETF Grades mix, though strong dividends and an above-market yield. With these in mind, I maintain a neutral rating.
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