While the positive outlook for the U.S. economy is expected to favor growth stocks, the interest rate easing cycle underway remains a tailwind for dividend stocks, as they become increasingly more competitive relative to lower interest rates. This scenario offers a
VSDA: Solid Dividend Growth, But Underperforming Peers
Summary
- The VictoryShares Dividend Accelerator ETF (VSDA) has underperformed its peers over the past five years, despite consistent dividend growth.
- VSDA's portfolio lacks significant exposure to high-growth sectors like technology and communication services, impacting its overall returns.
- The fund's valuation is in line with peers, but its higher expense ratio and lower trading volume are notable drawbacks.
- Given its recent performance and sector allocation, VSDA is not the best option for capital gains in the current market environment.
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