A New High Yield Dividend ETF Launches

Investors have a new dividend ETF to consider for their portfolios. iShares launched their High Dividend Equity Fund [[HDV]] today.

 

The dividend ETF which trades under the ticker “HDV” will seek to mirror the performance of the Morningstar Dividend Yield Focus index. That index contains 75 dividend stocks that are screened for “superior company quality and financial health”.

 

Noel Archard, Head of US Product at iShares at Blackrock, commented on the new dividend ETF launch, “Income is in high demand, yet continues to be hard to come by from traditional sources in a cost-effective, diversified, flexible trading manner. A basket of high dividend yielding equities can often provide investors with several benefits such as the potential for enhanced total return (especially in uncertain market environments), possible reduced volatility as compared to more growth-oriented stocks, and greater inflation protection than bonds through the ability to provide capital appreciation.”

 

The majority of the stocks in the High Dividend Equity Fund will come from the Consumer Goods, Healthcare and Utilities sectors.

 

The ETF’s largest holdings include:

 

AT&T – 10.4%

Pfizer – 6.8%

Chevron – 6.4%

Johnson & Johnson – 6.0%

Verizon Communications – 6.0%

Procter & Gamble – 5.6%

Philip Morris – 5.0%

Merck – 5.0%

ConocoPhillips – 4.3%

Intel – 4.2%

 

It’s always good to have another name to add to our list of dividend ETF’s, because that highlights the growing interest in dividend investing.

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