Keeping in mind that past performance, as the disclaimer goes, isn't indicative of future performance, a look at the numbers shows that you could have done well with a number of
smaller dividend ETFs.
Not exact matches
One way
small investors can imitate that approach: Buying the ProShares S&P 500
Dividend Aristocrats
ETF (NOBL), which owns shares in companies that have increased
dividends for at least 25 consecutive years.
As of this writing, the portfolio is down 2.11 % including
dividends, compared to a positive return of 11.63 % (excluding
dividends) for SPY over the same period and 10.5 % for Vanguard
Small Cap Value
ETF (VBR) over the same time period.
Thus, you may see different signals from time to time and
small differences in percentages above / below a moving average depending on whether an
ETF has paid a
dividend in the past 10 months.
This
ETF yields 3.4 % on
dividend, so saving
small money into this
ETF may provide a lot better return than saving money in a savings account where we can receive 0.90 % APY only.
We can use this strategy to save
small amounts of cash, for example $ 50 or $ 100 dollars a month, and invest it immediately into a
dividend paying
ETF.
The O'Shares FTSE Russell
Small Cap Quality Dividend ETF tracks an index of US small - cap stocks weighted for exposure to quality, low volatility, and high yield fac
Small Cap Quality
Dividend ETF tracks an index of US
small - cap stocks weighted for exposure to quality, low volatility, and high yield fac
small - cap stocks weighted for exposure to quality, low volatility, and high yield factors.
Whether your interest is Chinese equities, European
dividend stocks, emerging market
small caps, or gold, there's a low - cost
ETF available that can get you instant exposure.
I own a very
small position in the banks through ZDV, the BMO Canadian
Dividend ETF.
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The PowerShares High Yield Equity
Dividend Achievers ETF (PEY) offers a smaller, higher - yielding slice of the dividend achievers universe, taking only the 50 highest - yielding stocks from the dividend achievers
Dividend Achievers
ETF (PEY) offers a
smaller, higher - yielding slice of the
dividend achievers universe, taking only the 50 highest - yielding stocks from the dividend achievers
dividend achievers universe, taking only the 50 highest - yielding stocks from the
dividend achievers
dividend achievers screen.
The fund had major equivalent positions in the Schwab International
Small - Cap Equity
ETF (SCHC), WisdomTree International SmallCap
Dividend Fund (DLS), First Trust Dow Jones Global Select
Dividend Index Fund (FGD), iShares MSCI United Kingdom
ETF (EWU), PowerShares DWA Industrials Momentum Portfolio (PRN), and Vanguard FTSE Europe
ETF (VGK).
It differs from many other large cap
dividend ETF's in that financials at only 12 % comprise a relatively
small portion of the index.
Exposure to US stocks is obtained through the purchase of Large (VTI),
Dividend (DVY), Mid (VO) and
Small (VB) stocks, using best - of - class
ETFs, factoring in both management fees and liquidity.
The fund had top equivalent equity positions in the iShares MSCI Japan
ETF (EWJ; average weight of 38.6 %), iShares Japan Large - Cap
ETF (ITF; 14.2 %), iShares MSCI Japan
Small - Cap
ETF (SCJ; 9.7 %), SPDR ® Russell / Nomura
Small Cap ™ Japan
ETF (JSC; 8.6 %), and WisdomTree Japan SmallCap
Dividend Fund (DFJ; 8.5 %).
For investors who wish to add the additional
ETFs, I recommend WisdomTree International SmallCap
Dividend Fund (DLS) for
small cap international value and SPDR S&P; International
Dividend ETF (DWX) for large cap international value.
Thus, you may see different signals from time to time and
small differences in percentages above / below a moving average depending on whether an
ETF has paid a
dividend in the past 10 months.
BMO does offer a
dividend reinvestment program, but it does not issue fractional shares, so these
ETFs will have an annoying tendency to distribute
small amounts of cash that may just sit around in your account earning nothing.
The company's
Dividend Appreciation ETF (ticker: VIG) only costs 0.24 % annually, which is relatively small compared to the performance advantage one might expect from dividend growth
Dividend Appreciation
ETF (ticker: VIG) only costs 0.24 % annually, which is relatively
small compared to the performance advantage one might expect from
dividend growth
dividend growth stocks.
The following table includes sortable
dividend information on all
ETFs in the
Small Cap Growth Equities ETFdb.com Category, including yield,
dividend date, and beta.
This
ETF seeks to provide exposure to
small - and mid-cap stocks that may be well - positioned for
dividend growth.»
On the other hand,
dividend investors raise strong points: — less fees: even though
ETF fees are much
smaller than mutual funds, they do charge more than holding those stocks directly — more control: being able to select your type of portfolio, holding stocks that you believe in and going for the stocks that you know and targeting the yield that matches you — more fun?
This strategy invests in very short term high income bond
ETFs with a
small position invested in
small - and mid-cap high
dividend stocks.
The S&P / TSX
Dividend Aristocrats Index, which is replicated by a popular Canadian index
ETF, has to utilize a highly modified version of this methodology in order to cultivate enough stocks from the Canadian market, which overall is much
smaller and has a shorter track record.
We can use this strategy to save
small amounts of cash, for example $ 50 or $ 100 dollars a month, and invest it immediately into a
dividend paying
ETF.
(
ETF Trends: Jul 22, 2015) Noting that the Russell 2000 has outperformed the S&P 500 this year,
ETF Trends» Todd Schriber recommends ProShares Russell 2000
Dividend Growers
ETF (SMDV) for investors looking for a «more conservative, income - oriented approach» to
small cap stocks.
He notes ProShares has a full suite of
ETFs that invest in
dividend growers in U.S. large -, mid - and
small - cap, and international markets, all of which have done well in turbulent markets.
(Investopedia: Apr 15, 2015) Investopedia contributor Aaron Levitt says ProShares Russell 2000
Dividend Growers ETF (SMDV) «could be a great pick» for access to small cap dividend growth
Dividend Growers
ETF (SMDV) «could be a great pick» for access to
small cap
dividend growth
dividend growth stocks.
ProShares Russell 2000
Dividend Growers
ETF (SMDV) took the top spot among 794
small - cap mutual funds and
ETFs, returning 8.4 % as of March 31, 2016, compared with a decline of 1.8 % for the Russell 2000.
(
ETF Trends: Oct 5, 2016)
ETF Trends» Tom Lydon said that while investors don't usually associate
small - cap stocks with income - generating potential, there are many
small - cap stocks that pay
dividends, and they're accessible via
ETFs like ProShares S&P 500 Russell 2000
Dividend Growers
ETF (SMDV).
(Investment News: Jan 5, 2017) Investment News columnist John Waggoner said that ProShares Russell 2000
Dividend Growers
ETF (SMDV), which invests in
small - company stocks with a long history of increasing
dividends, was «the top - performing diversified U.S. smart - beta
ETF in 2016,» gaining 35.6 %.
The fund had only five equivalent positions in the iShares S&P
Small - Cap 600 Growth
ETF (IJT), PowerShares S&P SmallCap Health Care Portfolio (PSCH), WisdomTree SmallCap Earnings Fund (EES), PowerShares NASDAQ Internet Portfolio (PNQI), and WisdomTree Japan SmallCap
Dividend Fund (DFJ).
While it would be nice to have the ability to DRIP all
ETFs, I view the exchange penalty paid on converting foreign
dividends as a
small expense that doesn't wipe out the fee advantages of Vanguard
ETFs.
Rather than limiting yourself to the basics, you can find
ETFs that zero in on specific categories of bonds or stocks: Short - term or long - term bonds, government or corporate bonds, large companies,
small companies,
dividend payers and many others.
Last month the list outperformed at 3.48 % (excluding any
dividends) versus -.07 % for SPY and -.21 % for VBR, a
small cap value
ETF.
Last month the list was generally in line with overall US equities, returning 3.69 % (excluding any
dividends) versus 3.62 % for SPY and 3.37 % for VBR, a
small cap value
ETF.
The IShares Select
Dividend ETF uses a weighting by dividend per - share rather than market capitalization, which provides more exposure to small and mid-cap
Dividend ETF uses a weighting by
dividend per - share rather than market capitalization, which provides more exposure to small and mid-cap
dividend per - share rather than market capitalization, which provides more exposure to
small and mid-cap stocks.
Some smart beta
dividend ETFs do diversify across the safety spectrum of
small to large cap stocks, with large cap providing the highest margin of safety.
1 Vanguard Consumer Discretionary
ETF (VCR) 2 Vanguard Consumer Staples
ETF (VDC) 3 Vanguard
Dividend Appreciation
ETF (VIG) 4 Vanguard Emerging Markets Stock
ETF (VWO) 5 Vanguard Energy
ETF (VDE) 6 Vanguard Europe Pacific
ETF (VEA) 7 Vanguard European
ETF (VGK) 8 Vanguard Extended Dur Trs Idx
ETF (EDV) 9 Vanguard Extended Market Index
ETF (VXF) 10 Vanguard Financials
ETF (VFH) 11 Vanguard FTSE All - World ex-US
ETF (VEU) 12 Vanguard FTSE All - Wld ex-US SmCp Idx
ETF (VSS) 13 Vanguard Growth
ETF (VUG) 14 Vanguard Health Care
ETF (VHT) 15 Vanguard High
Dividend Yield Indx
ETF (VYM) 16 Vanguard Industrials
ETF (VIS) 17 Vanguard Information Technology
ETF (VGT) 18 Vanguard Intermediate - Term Bond
ETF (BIV) 19 Vanguard Interm - Tm Corp Bd Idx
ETF (VCIT) 20 Vanguard Interm - Tm Govt Bd Idx
ETF (VGIT) 21 Vanguard Large Cap
ETF (VV) 22 Vanguard Long - Term Bond Index
ETF (BLV) 23 Vanguard Long - Term Corp Bond Idx
ETF (VCLT) 24 Vanguard Long - Term Govt Bd Idx
ETF (VGLT) 25 Vanguard Materials
ETF (VAW) 26 Vanguard Mega Cap 300 Index
ETF (MGC) 27 Vanguard Mega Cap 300 Gr Index
ETF (MGK) 28 Vanguard Mega Cap 300 Value Index
ETF (MGV) 29 Vanguard Mid Cap
ETF (VO) 30 Vanguard Mid-Cap Growth
ETF (VOT) 31 Vanguard Mid-Cap Value
ETF (VOE) 32 Vanguard Mortgage - Backed Sec Idx
ETF (VMBS) 33 Vanguard Pacific Stock
ETF (VPL) 34 Vanguard REIT Index
ETF (VNQ) 35 Vanguard Short - Term Bond
ETF (BSV) 36 Vanguard Short - Term Corp Bd Idx
ETF (VCSH) 37 Vanguard Short - Term Govt Bd Idx
ETF (VGSH) 38 Vanguard
Small Cap
ETF (VB) 39 Vanguard
Small Cap Growth
ETF (VBK) 40 Vanguard
Small Cap Value
ETF (VBR) 41 Vanguard Telecom Services
ETF (VOX) 42 Vanguard Total Bond Market
ETF (BND) 43 Vanguard Total Stock Market
ETF (VTI) 44 Vanguard Total World Stock Index
ETF (VT).
iShares EURO
Dividend UCITS
ETF, iShares EURO STOXX 50 UCITS
ETF (Acc), iShares EURO STOXX 50 UCITS
ETF (Inc), iShares EURO STOXX 50 ® - B UCITS
ETF (Acc), iShares EURO STOXX 50 ® ex-Financials UCITS
ETF, iShares EURO STOXX Mid UCITS
ETF, iShares EURO STOXX
Small UCITS
ETF, iShares EURO Total Market Growth Large UCITS
ETF, iShares EURO Total Market Value Large UCITS
ETF, iShares SLI ® (CH), iShares SMI ® (CH), iShares SMIM ® (CH), iShares STOXX Europe 50 UCITS
ETF, iShares Swiss Domestic Government Bond 1 - 3 (CH), iShares Swiss Domestic Government Bond 3 - 7 (CH) and iShares Swiss Domestic Government Bond 7 + (CH) is not sponsored, subscribed, sold or promoted by STOXX and its licensors and none of them bear any liability in this respect.
During the financial crisis, S&P's strict index methodology forced the
ETF to boot out the largest banks and insurance companies (since they failed to increase
dividends), replacing them with
smaller dividend paying companies that still met their criteria.
The reference portfolio consisted of the iShares MSCI EAFE
Small - Cap
ETF (SCZ; average weight of 27.2 %), SPDR ® S&P ® International
Small Cap
ETF (GWX; 27.0 %), iShares MSCI Europe
Small - Cap
ETF (IEUS; 20.4 %), PowerShares FTSE RAFI Developed Markets ex-U.S.
Small - Mid Portfolio (PDN; 11.0 %), and WisdomTree International MidCap
Dividend Fund (DIM; 6.3 %).
Unlike the gold
ETFs, the shares of the Central Fund of Canada also pay a
small dividend.
Prior to 10/17/2017, the SPDR Portfolio Total Stock Market (SPTM) was known as the SPDR Russell 3000
ETF (THRK), the SPDR Portfolio Large Cap
ETF (SPLG) was known as the SPDR Russell 1000
ETF (ONEK), the SPDR Portfolio Mid Cap
ETF (SPMD) was known as the SPDR S&P 1000
ETF (SMD), the SPDR Portfolio
Small Cap
ETF (SPSM) was known as the SPDR Russell 2000
ETF (TWOK), the SPDR Portfolio S&P 500 Growth
ETF (SPYG) was known as the SPDR S&P 500 Growth
ETF (SPYG), the SPDR Portfolio S&P 500 Value
ETF (SPYV) was known as the SPDR S&P 500 Value
ETF (SPYV), the SPDR Portfolio S&P 500 High
Dividend ETF (SPYD) was known as the SPDR S&P 500 High
Dividend ETF (SPYD), Prior to 12/07/2017, the SPDR Portfolio Developed World ex-US
ETF (SPDW) was known as the SPDR Portfolio World ex-US
ETF (SPDW), prior to 10/16/2017, it was known as the SPDR S&P World ex-US
ETF (GWL), the SPDR Portfolio Emerging Markets
ETF (SPEM) was known as the SPDR S&P Emerging Markets
ETF (GMM), the SPDR Portfolio Aggregate Bond
ETF (SPAB) was known as the SPDR Bloomberg Barclays Aggregate Bond
ETF (BNDS), the SPDR Portfolio Short Term Corporate Bond
ETF (SPSB) was known as the SPDR Bloomberg Barclays Short Term Corporate Bond
ETF (SCPB), the SPDR Portfolio Intermediate Term Corporate Bond
ETF (SPIB) was known as the SPDR Bloomberg Barclays Intermediate Term Corporate Bond
ETF (ITR), the SPDR Portfolio Long Term Corporate Bond
ETF (SPLB) was known as the SPDR Bloomberg Barclays Long Term Corporate Bond
ETF (LWC), the SPDR Portfolio Short Term Treasury
ETF (SPTS) was known as the SPDR Bloomberg Barclays Short Term Treasury
ETF (SST), and the SPDR Portfolio Long Term Treasury
ETF (SPTL) was known as the SPDR Bloomberg Barclays Long Term Treasury
ETF (TLO).
Currently I have a few
dividend ETF's (DTD, SDY) but they have low yields and are costly for my
small account.
My plan is to keep a
small group of blue chip
dividend stocks as well as some index
ETFs with very low fees, and use the
dividend income to reinvest in both
ETFs and more
dividend stocks.