VSDA: Solid Dividend Growth, But Underperforming Peers

Carlos R. Tartarini profile picture
Carlos R. Tartarini
504 Followers
(12min)

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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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

This article was written by

Carlos R. Tartarini profile picture
504 Followers
I am an individual investor. My main focus on investing is to achieve capital appreciation by selecting high value and compelling growth opportunities.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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About VSDA ETF

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