iShares Select Dividend ETF (DVY)

high-dividend us-equity income-focused dividend-weighted

Focuses on high-dividend-yielding U.S. equities, tracking the Dow Jones U.S. Select Dividend Index. Unlike some dividend-focused funds, DVY employs a yield-weighted methodology, potentially resulting in a higher overall yield but also increased concentration in certain sectors. Utilities, financials, and consumer staples often feature prominently in its portfolio. The fund's selection criteria include dividend growth rate, payout ratio, and trading volume, aiming to balance yield with dividend sustainability. With an expense ratio of 0.38%, DVY is pricier than some of its peers in the dividend ETF space. Its performance can diverge significantly from broad market indices, particularly during growth-oriented markets, as it tends to tilt towards value stocks. DVY's approach may appeal to income-focused investors, but it comes with sector concentration risks and potential underperformance during periods favoring growth stocks.