Risk Aversion Abates in Dividend ETFs
01/07/2011 0 comments
International REITs (RWX) and U.S. REITs (IYR, ICF) continued to retain their top spots in performance
trend ranking. They are followed by several U.S. stock dividend ETFs. For more detail, please refer to the table below and performance page here.
International REITs (RWX) and U.S. REITs (IYR, ICF) continued to retain their top spots in performance
trend ranking. They are followed by several U.S. stock dividend ETFs. For more detail, please refer to the table below and performance page here.
| Assets Class | Symbols | 01/05 Trend Score | 12/29 Trend Score | Direction |
|---|---|---|---|---|
| SPDR DJ Wilshire Intl Real Estate | RWX | 10.69% | 13.5% | v |
| iShares Dow Jones US Real Estate | IYR | 10.4% | 10.75% | v |
| SPDR S&P 500 | SPY | 10.32% | 10.45% | v |
| PowerShares HighYield Dividend Achievers | PEY | 9.46% | 10.44% | v |
| Vanguard High Dividend Yield Indx | VYM | 9.04% | 9.83% | v |
| iShares MSCI Emerging Markets Index | EEM | 9.0% | 9.75% | v |
| Vanguard Dividend Appreciation | VIG | 8.2% | 9.46% | v |
| iShares Dow Jones Select Dividend Index | DVY | 8.17% | 9.16% | v |
| PowerShares Intl Dividend Achievers | PID | 7.18% | 9.84% | v |
| SPDR S&P Dividend | SDY | 7.07% | 7.94% | v |
| First Trust Value Line Dividend Index | FVD | 6.76% | 7.75% | v |
| iShares Dow Jones Intl Select Div Idx | IDV | 5.19% | 8.86% | v |
| iShares MSCI EAFE Index | EFA | 4.89% | 7.9% | v |
| iShares S&P U.S. Preferred Stock Index | PFF | 3.77% | 3.63% | ^ |
Though several U.S. stock dividend ETFs (PEY, VYM) are ranked close to the top, we also observe that some of them like SDY and FVD have lower trend scores. Looking into this further, we make the following observation:
- The dividend ETFs that hold cyclical stocks such as financial are doing well right now, compared with those overweighting in more stable stocks such
as consumer staples. For example, based on PowerShares, HighYield Dividend Achievers (PEY) has 34.4% financial stock holding while SPDR S&P Dividend (SDY)'s top sector holdings are in consumer staples (19.84%).
- Taking a longer term view, we noticed that SDY's five year annualized return is around 2.78%, compared with PEY's -6% (as of 1/6/2011).
- Similarly, the bottom ranked First Trust Value Line Dividend Index (FVD) has five year annualized
return is 6.31%. Its top holdings include 21.3% utilities, 15.4% industrial materials and 15.3% consumer staples.
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