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Is iShares Select Dividend ETF (DVY) a Strong ETF Right Now?
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A smart beta exchange traded fund, the iShares Select Dividend ETF (DVY - Free Report) debuted on 11/03/2003, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $22.45 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Value. DVY is managed by Blackrock. Before fees and expenses, DVY seeks to match the performance of the Dow Jones U.S. Select Dividend Index.
The Dow Jones U.S. Select Dividend Index measures the performance of a selected group of equity securities issued by companies that have provided relatively high dividend yields on a consistent basis over time.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.38% for DVY, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 3.44%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For DVY, it has heaviest allocation in the Financials sector --about 25.3% of the portfolio --while Utilities and Consumer Staples round out the top three.
When you look at individual holdings, Pfizer Inc (PFE) accounts for about 2.3% of the fund's total assets, followed by Altria Group Inc (MO) and Verizon Communications Inc (VZ).
Its top 10 holdings account for approximately 18.23% of DVY's total assets under management.
Performance and Risk
The ETF has gained about 8.83% and it's up approximately 22.13% so far this year and in the past one year (as of 05/08/2026), respectively. DVY has traded between $129.56 and $157.93 during this last 52-week period.
The ETF has a beta of 0.67 and standard deviation of 13.69% for the trailing three-year period, making it a medium risk choice in the space. With about 106 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares Select Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $89.95 billion in assets, Vanguard Value Index Fund ETF Shares has $172.58 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is iShares Select Dividend ETF (DVY) a Strong ETF Right Now?
A smart beta exchange traded fund, the iShares Select Dividend ETF (DVY - Free Report) debuted on 11/03/2003, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $22.45 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Value. DVY is managed by Blackrock. Before fees and expenses, DVY seeks to match the performance of the Dow Jones U.S. Select Dividend Index.
The Dow Jones U.S. Select Dividend Index measures the performance of a selected group of equity securities issued by companies that have provided relatively high dividend yields on a consistent basis over time.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.38% for DVY, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 3.44%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For DVY, it has heaviest allocation in the Financials sector --about 25.3% of the portfolio --while Utilities and Consumer Staples round out the top three.
When you look at individual holdings, Pfizer Inc (PFE) accounts for about 2.3% of the fund's total assets, followed by Altria Group Inc (MO) and Verizon Communications Inc (VZ).
Its top 10 holdings account for approximately 18.23% of DVY's total assets under management.
Performance and Risk
The ETF has gained about 8.83% and it's up approximately 22.13% so far this year and in the past one year (as of 05/08/2026), respectively. DVY has traded between $129.56 and $157.93 during this last 52-week period.
The ETF has a beta of 0.67 and standard deviation of 13.69% for the trailing three-year period, making it a medium risk choice in the space. With about 106 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares Select Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $89.95 billion in assets, Vanguard Value Index Fund ETF Shares has $172.58 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.