For investors seeking momentum, iShares Select Dividend ETF (DVY - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 31.5% from its 52-week low of $96.44 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
DVY in Focus
iShares Select Dividend ETF provides exposure to companies with a consistent five-year history of dividend payments. Utilities and financials dominate the fund’s portfolio with at least 24% share each, while energy, consumer staples and materials round off the next three spots. The ETF charges 38 basis points in fees (see: all the Large Cap Value ETFs here).
Why the Move?
The value corner of the broad investing world has been an area to watch lately, given the bouts of volatility and uncertainty on the stock market. This is because dividend-focused ETFs offer safety in the form of payouts and stability through mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are major sources of consistent income for investors when returns from equity markets are at risk. Further, these products are proven outperformers over the long term.
More Gains Ahead?
Currently, DVY has a Zacks ETF Rank #3 (Hold). Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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For investors seeking momentum, iShares Select Dividend ETF (DVY - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 31.5% from its 52-week low of $96.44 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
DVY in Focus
iShares Select Dividend ETF provides exposure to companies with a consistent five-year history of dividend payments. Utilities and financials dominate the fund’s portfolio with at least 24% share each, while energy, consumer staples and materials round off the next three spots. The ETF charges 38 basis points in fees (see: all the Large Cap Value ETFs here).
Why the Move?
The value corner of the broad investing world has been an area to watch lately, given the bouts of volatility and uncertainty on the stock market. This is because dividend-focused ETFs offer safety in the form of payouts and stability through mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are major sources of consistent income for investors when returns from equity markets are at risk. Further, these products are proven outperformers over the long term.
More Gains Ahead?
Currently, DVY has a Zacks ETF Rank #3 (Hold). Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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