March 27, 2012 at 07:00 AM EDT
Comparing A Dividend ETF With A Dividend Weighted ETF
In recent years ETFs have become the vehicle of choice for accessing a wide range of asset classes, from traditional stocks and bonds to more “exotic” strategies such as commodities and hedge fund-like positions. So it is no surprise that there are now dozens of dividend-focused ETFs designed to deliver cheap, efficient, and targeted exposure to companies that make cash distributions to shareholders. One of the most popular of those is the SPDR S&P Dividend ETF (SDY), a product that has perhaps the most stringent requirements for inclusion among all dividend-focused funds. In order to be included in the underlying index, companies must have raised their dividend for at least 25 consecutive years. That lengthy period of time stretches across all types of markets–including multiple recessions–meaning that any company that has managed to steadily increase payouts is likely on a firm foundation. SDY is a unique, innovative product; it offers [...] Click here to read the original article on ETFdb.com. Related Posts: Inside The Simple, Surprisingly Effective Dividend ETF Seven Surprising ETF Holdings: Why Investors Should Always Look Under The Hood Three ETFs To Watch This Week: IYZ, SMH, XLV Dividend ETF Gets A Makeover ETF Dividend Ideas For 2011
In recent years ETFs have become the vehicle of choice for accessing a wide range of asset classes, from traditional stocks and bonds to more “exotic” strategies such as commodities and hedge fund-like positions. So it is no surprise that there are now dozens of dividend-focused ETFs designed to deliver cheap, efficient, and targeted exposure to companies that make cash distributions to shareholders. One of the most popular of those is the SPDR S&P Dividend ETF (SDY), a product that has perhaps the most stringent requirements for inclusion among all dividend-focused funds. In order to be included in the underlying index, companies must have raised their dividend for at least 25 consecutive years. That lengthy period of time stretches across all types of markets–including multiple recessions–meaning that any company that has managed to steadily increase payouts is likely on a firm foundation. SDY is a unique, innovative product; it offers [...]

Click here to read the original article on ETFdb.com.

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